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Post Info TOPIC: Which nominal code to use.
simon


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Which nominal code to use.
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Hi All

I am new to using sage and from the statement have a cheque payment to post on sage that was to a colleague as a 'thankyou' type bonus. Where shall I code it to?  

 

Many thanks for advice in advance.

 

cheers

si 



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Wella


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Think you have now come in to the realm of tips and tronc masters

The bonus is a tip. If an employer distributes the tip then it is added to payroll for tax but not NI.

It is a bit messy but what i would do is (happy for someone to show me simpler way) DR bank and CR Suspense A/c (You may want to create a new account for tips/gratutities in the 22xx range) That puts the cheque in the bank, and leaves a creditor (the employee)

When pay is calculated, add the "bonus" as an additional pay item include in tax calc but not NI

DR Gross wages  (as normal)    CR Net wages

DR Suspense (value of tip)        CR PAYE/ NI/ Empl NI

When you journal the wages the bonus in suspense is balanced out. The PAYE/ NI/ Empl NI is as calculated, and the Net wages will be the balancing value.

Source: http://www.hmrc.gov.uk/payerti/payroll/special-pay/tips.htm#3

HTH

Bill

 



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