I got a slight issue. One of the employees has demanded that his wages should be 2000 pm, irrespective of what he earns due to his mortgage application and the need for a fixed amount as salary. He is on an hourly rate and does normally 275 hours pm @6.85. So, he is promised to pay bak the difference which is 2000+erni - (275*6.85+erni).
For this month, he is ACTUALLY earnt 1943.81 to be precise. And his paye is 264, eeni is 161.04, erni is 186.99 and his net pay after deductions is 1253.77 and deduction is 265. With his Gp of 2000, he is got Paye 275.40, eeni 167.76, erni 194.71 and net pay of 1291.84. This is whats been paid out from the bank to both the employee and the Hmrc.
So if i write up the journals:
Dr GP 7000 - 2000
Dr Erni 7006 - 275.40
Cr 2220 N wages - 1291.84
Cr 2210 Paye/eeni/erni - 637.87
Cr 2102 C advance - 265.00
He will have to reimburse (2000+194.71)-(1943.81+186.99)=63.91.
Whats the best way to go about this?
I was intending to do this with the difference:
DR Other Debtors 38.07 (GP)
DR O.debtors 25.84 (paye/erni/eeni)
CR G Pay AC 56.19
CR ER Ni AC 7.72
On receipt of payment from employee:Bank Receipt to other debtors.
Who is telling you, the employer or the employee? Usually a mortgage lender asks for a letter from the employer requesting length of time with employer, annual salary, whether or not the job is temporary.
Yes, thats why i was confused as it didnt look alright. My Hr and the employee told me to do this. I have made up my mind, i will redo his wages tomorrow and will tell him its not possible.
