Help-Accounting for Payroll

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Im having difficlty getting my head round posting payroll to the ledger. Can anyone give me an easy way to remember this?

cheers
clair

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help-Accounting for Payroll

    The way i remember how to post is as follows:
    1st thing to do is post the companies total wages expense to the wages and salaries account (Gross & any Employer contributions). As it is an expense it will be on the debit side.
    2nd Step would be to complete double entry by posting to Inland Revenue/Pensions/Bank etc as Credits.
    Finally post to the contol account, mirror the wages and salaries debit side in the credit side of the wages and salaries control and on the debit show@ nett wages, employee and employer contributions and any paye.
    Sounds confusing but it works for me!!
    Becky

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