PAYE woes in Quickbooks (or other software...) - The Book-keepers Forum (UK)

Tom McClelland · Senior Member

PAYE woes in Quickbooks (or other software...)

ClawzCTR · Guru

I have a client whos deals with all the PAYE herself throught the business and pays HMRC on time the lot... I never had to touch it...

Until now.... She shows how much she pays the staff on a weekly basis on the spread sheets, and then every so often takes money out of the bank putting it in a PAYE account so it doesn't get spent (very wise if you ask me!), then when PAYE is due she transfers it back then out to HMRC.

This is where I am stuck, I tried to use the payroll software for QB but have gotten nowhere fast and getting confused quickly... is there anyway to avoid using this till i get used to it and just post manually to the accounts?

I'm under the understanding that PAYE, like VAT, is a liability that needs paying, but im unsure on where to post things in quickbooks...

My current setup is;

Wages paid - Dr 'payroll liabilites account' - Cr 'Bank'

PAYE setting aside - Dr 'PAYE savings account' - Cr 'Bank' (then reverse for putting money back in to pay it)

Paying PAYE - errrrrr should it be: Dr 'payroll account' (which doesn't exsist) and Cr 'Bank' or have i got this all wrong??

Any advice it much needed! (sorry folks!)

Tom McClelland · Senior Member

Wages paid, broadly in the simplest case,

Dr Gross Wages expense
Dr Employers NI expense
Cr PAYE Liability (PAYE + all NI)
Cr Bank (net payment to employees)

At end of the month, when paying HMRC

Dr PAYE Liability
Cr bank

ClawzCTR · Guru

But if i only have the net payment she paid, for arguments sake, £2500 paid out to wages first week of dec. How would i know the level of NI or PAYE paid, or will i have to ask her for more information??

(judging by your quick reply then I assume Im posting to the wrong accounts???)

ClawzCTR · Guru

Guess thats a phone call in the morning then!!! :/ LOL

Use the same accounts you've used there too then Tom? Renaming them etc etc...

Tom McClelland · Senior Member

I've just used the names I'd give them if I were doing the books, but I'm not a QB user. QB may have different conventions.

Stardoe · Guru

Hi Gary/Tom,

It is fine to use the accounts that Tom has suggested. You can create them in QB if they don't exist already.

Gross wages - Expense
Employer's NI - Expense
PAYE & NI Ctrl - Other current liability
Net wages - Other current liability

PAYE savings can be an Other current asset or a Bank account.

HTH
Pauline

ClawzCTR · Guru

Thanks for the advice guys.

Just a small one though... :D lol

CIS (subbys) if the CIS comes OFF their gross payments would that be a current asset or liability??

Stardoe · Guru

Hi Gary,

It would be a current liability as you have to pay this to HMRC with your PAYE liability.

ClawzCTR · Guru

Right I finally got it nailed... took me nearly a week to figure out what was happening with all the figures etc... even had to resort to drawing up t accounts to see what went where!!

But its all sorted now. Thanks for you help guys! :D