I'm still quite new to book keeping and the company I work for has just made its first payment to the CSA. I'm not 100% sure how to deal with this. What nominal code should I put it under? Any help would be much appreciated!
For the self employed a payment to the CSA is drawings.
For employee's (which you seem to state that you are) as far as the books are concerned then it's part of your salary, just some goes to you and some goes direct to the CSA.
Other people may treat this differently with some opting to create a separate code for CSA payments around the salary code so that it is reported separately.
Hope that this helps,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
My answer assumes that it's child support payments which is just salary but going to the CSA rather than the employee.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Sorry for the confusion, my company are paying the Child Support Agency direct on behalf of an employee, so my boss has written a cheque to make this payment to them. I'm just trying to account for said cheque.
Either put to salary or create a new code in the salary nominal code area in order to allocate the CSA payments.
So it would be something like
(cr) Bank £400 (NC 1200) (dr) Salary £300 (NC 7000) (dr) CSA £100 (NC next available code in the 7000 range, i.e. 7013)
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I take it the CSA payments are deducted from the employees wages? Then it is a payment on behalf of the employee If this is the case you would post the payroll journal as
DR 7000 gross wages DR 700x employers ni CR 2220 net wages control (balance sheet) CR 2210 PAYE (balance sheet) CR 2211 NI (balance sheet) CR 2225 CSA paid (create a balance sheet code, say 2225)
I'm right in general principle but the detail in Carole's way is much better.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Thanks for your help everyone - much appreciated! I'm just about finished my second year of HND accounting, but they don't teach you anything about things like this!! LOL