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  • Posting payroll figures in Sage Line 50???? help?

    Hi everyone,

    My job has recently changed so that I now have to deal with all aspects of accounts. Im fine with this and with using sage and have just started aat payroll doing home study.

    Im really stuck on how to enter the weekly payroll into Sage Line 50, at the moment it is outsourced and I will have to enter the figures into sage using a journal (I think? ) but am not sure which entries go where.

    Can anyone help me please?

  • #2
    Hi Laura,

    The journal you are thinking of is:-

    Dr Gross Wages (Nominal 7000 in Sage)
    Dr Employers NI (Nominal 7006)

    (Which is the total cost to the company of the wages and therefore sit in the P&L acc )

    Cr PAYE Tax (2210)
    Cr PAYE NI (2211)
    Cr Net Wages(2220)

    (Which is will sit in the BS as a liability until the following transactions are made)

    Then when you come to pay the wages you will Cr Bank Dr Net Wages.

    And when you make the monthly payment to HMRC, Dr PAYE Tax/PAYE NI.
    This should revert to zero each month so you know you are making the correct amount to HMR&C.

    Having said all that in previous jobs I've just made a bank payment to net wages, and let the external accountants check the figues at yearend Not really ideal, but the way it had been set up!
    Last edited by Jan; 16-08-08, 14:33.
    Jan

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    • #3
      Thats brilliant, thanks so much!!!

      I was wondering though, when do Gross Wages and Employers NI accounts become clear? Do they just stay with a balance on them to show the expense at year end?

      And also, what is the difference between Employers NI and Employee NI? Are they two different amounts paid separately? Ive asked a couple of people at college and never seen to get the same answer!!!!

      Comment


      • #4
        Hi Laura

        The gross wages and employers NI stay in the nominal accounts till you close the year end off. Yes, they are an expense - the total of these will be how much it has cost the company over the year.

        Employers NI is what the employer pays, the employees NI is what is deducted from the employees wages. Have a closer look at your own pay slip next time - there is usually a section that says how much the employer has paid the dear old HMRC in NI !
        Jan

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        • #5
          So would the Employer NI and Employee NI figures be different or the same? I have an indepth print out of our weekly payroll and they are different. Its so confusing when you dont know how!

          Thanks, Laura

          Comment


          • #6
            Sorry I didn't reply last night - I signed off as soon as I'd posted!

            Yes they would be different - they are different %age rates so will always be different.
            Jan

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            • #7
              11% for employee's and 12.8% for employers, on basic rates.
              It's not what you are that holds you back, it's what you think you are not!!!

              Comment


              • #8
                I think I understand now.

                Does the Employers NI get added to the Employees NI and the PAYE when its paid to HMRC?

                And if I had a pension payment would that also be a CR along with the PAYE and NI? And the become a DR when it was paid to the pension organisation?

                Sorry to be a pain, Laura

                Comment


                • #9
                  From Farmergiles AKA Peter
                  11% for employee's and 12.8% for employers, on basic rates.
                  OK knowall I was trying to keep it simple

                  Laura no pain at all - except I have not dealt with pension payments so can't answer that part. . Wouldn't that payment not go off to your pension provider? Now it's your turn to enlighten me!

                  But the Cr doesn't "become" a Dr - it is the other part of the double entry when you make the bank payment ie Cr Bank Dr NI & PAYE, although because you are not doing it as a journal you don't always think of it as that.

                  Hope this helps.
                  Jan

                  Comment


                  • #10
                    You've been a great help thanks.

                    The reason I asked is that the breakdown for the payroll gives a total gross and taxable gross, the difference between the two being the pension contribution, I presumed that the gross I put in the journal would be the total gross and then the pension amount would be a credit like the NI and Tax. This way the journal balances. Tell me if i'm completely off the mark!!! Its a stakeholder pension so comes out of the employees wage, rather than the company contributing
                    Last edited by lauraet; 20-08-08, 10:49. Reason: additional text

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                    • #11
                      Its a stakeholder pension so comes out of the employees wage, rather than the company contributing
                      So it won't be any cost to the company? Your treatment sounds about right, but as I say I haven't had to deal with pension contributions before. Is there any way you can look back to see how they have been dealt with in the past?
                      Jan

                      Comment


                      • #12
                        This is the first time its been done in sage or any way remotely organised!

                        I only think its right because the gross wages is broken down on the printout into NI, PAYE, Pension, SMP, SSP, etc. Unless I used the figure for taxable gross but that way the pension would be omitted entirely!

                        Im sorry I started now!!!

                        Comment


                        • #13
                          Pension Journal

                          Pension would have two entries debit and credit.

                          You have to add penion to salary cost in order to arrive correct cost of employment.

                          At the same time you have to credit the pension with the same amount in a balance sheet account as a creditor. When you pay penion provider the contribution, you would debit Pension Control Account (Balance sheet/creditor account) and debit the bank.

                          If have any more question just ask.

                          Regards

                          Nilesh

                          Comment


                          • #14
                            Thats brilliant, thank you so much for everyones help

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                            • #15
                              Pension journal Correction

                              Laura

                              Originally posted by Nilesh Mandvia View Post
                              Pension would have two entries debit and credit.

                              You have to add penion to salary cost in order to arrive correct cost of employment.
                              I am sorry that the above entries apply to if you have a salary sacrifice pension.

                              If you have stakeholder pension then the contribution are deducted from net amount. So it does not affect your gross salary. You have to treat like paye & nic. For example, Gross pay 100, paye 20, employers nic 12.8, Employees nic 11 and pension contribution 5.

                              Debit Gross Pay 100.00
                              Debit Employers NIc 12.80
                              Credit Paye& Nic Control Account (creditors) 43.80
                              Credit Net Pay Control account 64.00
                              Credit Pension Control Account 5.00


                              When you make payments the journal would be

                              Debit Net Pay Control Account 64.00
                              Credit Bank/Cash 64.00

                              Paye & Nic

                              Debit Paye & Nic Control account 43.80
                              Credit Bank/cash 43.80

                              Pension

                              Debit Pension Control Account 5.00
                              Credit Bank/Cash 5.00

                              You may already know some or all above mentioned journal. I wrote for the completeness.

                              Regards

                              Nilesh

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