I have got a new client who is partially sited. Due to this he has got a chauffeur who works just 16 hours a week. My client pays the chauffeur his wage then is refunded via a trust.
Could you please tell me how this would be recorded in the books. I am assuming that the payroll is done as normal but how do I account for the refund by the trust. I am using sage, so if one of you wiz kids could point me in the right direction it will be most appreciated.
DB Gross Wages 7000 DB Employers NI (if there are any)7006 CR Net Wages2220 CR Employees Tax (if any)2210 CR Employees and Employers NI (if any)2211 Allocate Wages payment form your client to Net Wages2220 Allocate Trust Refund to Gross Wages (this reduces your expenses on gross wages to show a nil balance)7000
Sue
-- Edited by Sue T on Sunday 11th of April 2010 09:47:41 PM
-- Edited by Sue T on Sunday 11th of April 2010 09:49:55 PM
Dotty forgot to say you would allocate the refund to 7000 as a bank receipt ( I presume it will be bacs or cheque payment) through the bank account, and the bank payment to net wages 2220 through the appropriate bank account if by cheque or bacs or cash withdrawn through the bank. Sue
-- Edited by Sue T on Sunday 11th of April 2010 11:15:42 PM
