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Pammy


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sage wage journal
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Hi everyone,
could somebody please help me with the sage wages journal.
I have passed level 1 and 2 manual with very good results,
however I recently did level 2 computer and although I passed
this time it was not so good.

 I am hoping to set up on my own
and need to be sure that the books of any clients would be accurate so I sent off for the examiners report and though
it was not much help, I now know that my weak point is the
wage journal, the report simply stated , incorrect wage journal
taxation.

I did not answer with confidence the Employer NICs owed
and I have heard NICs referred to as a tax, however the
rest was filled in as the sage instant tutor books showed
therefore if someone would be so kind as to show me an
example, including Employer NICs I would be grateful.

May I thank you in advance as I have to shoot up Scotland
in the morning and will not be back till next week.
                              confuse



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AngelaWBS


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Hi Pammy

My understanding of the wage journal is as follows:-

DR Gross Wages/Salaries (code 6000/7000 ish)
DR Employers NI (code 6000/7000 ish)

CR Net Wages (code 2000 ish)
CR PAYE (HMRC) (code 2000 ish)

When the bank payments are made to the employees and HMRC they are debited to the 2000 code ish thus clearing the liability.

The Dr balance from the journal goes to the P&L thus showing the wage costs to the business.

It can be as basic or complex a journal depending on what breakdown is required or involved.

Hope that helps and makes sense too.



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Angela
http://www.bookkeeping-suffolk.co.uk/
fpe


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Hi Pammy

I post wages journals (to Sage Accounts) as follows (it will depend on the company setup, management, admin, etc.):

Dr management salaries (7001)
Dr admin salaries (7003)
Dr labour (6000)

Cr paye tax (2210)
Cr N/I (2210)
Cr wages control (2211)

I split tax/ni for my own information.  You may also have other considerations like csa payment, pensions, etc.

Hope this helps,
Tricia



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Pammy


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Thankyou Angela and Tricia
Happy New Year to everyone. I have been busy and forgot my password
hence the delay.
I read this forum often, and have a book collecting all the advice to people because I think it will all come in useful at some time to myself.

Wish for everyone a successful year ahead

Pammy xx

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jansey


Newbie

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I don't want to confuse the issue but I do this differently to separate the EE and ER (employers and employees contributions)

DR the total cost of payroll, generally

7000 gross wages
7006 employers NI
Casual labour, directors pay, etc. are around these nominal codes

CR

2210 PAYE
2211 Total NI
2220 Net pay (ie after deductions)
other deductions are in this range.

2210+2211 are the amounts to be paid to HMRC

When salaries are paid

CR the bank account
DR 2220

When PAYE & NI are paid to HMRC
CR the bank account
DR 2210
DR 2211 the amounts due

All these posings have t/c T9.


Good luck!


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BackOfficeGroup


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Thats the way I would do it also, but I would post the PAYE and NI together in the 2210, as this is relatively unimportant as this becomes the totla due to HMRC and sits on the balance sheet - the important one is in the P&L, showing the employers NI as seperate.

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Flex Accounting Services


Senior Member

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Posts: 207
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Yes I do it this way too and split the NI and PAYE into separate nominals (easier to reconcile I feel).

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Beverley Flanagan MICB, CB Dip, PM Dip.
info@flexaccounting.co.uk
www.flexaccounting.co.uk
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