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Unit 2 simulation tomorrow!!!Please Help?

PicklePickle New MemberRegistered Posts: 8
Wages & salaries control account

Got my Unit 2 simulation tomorrow and I've done the practise simulation from this website. Only trouble is that in the wages & salaries control account the Credit side shows the gross pay (total cost to business) without including the employers NIC contribution. This has also been listed on the debit side of the wages expense account.

According to my tutor the total cost (ie net pay+paye+employers & employees NICs) is one entry (CR) on the control account and one entry (DR) on the expense account.

We list separately on the DR side of the control account for net pay, PAYE, employee's NIC and employers NIC.

Which is right????

Any help much appreciated!


  • AikaAika New Member Registered Posts: 7
    AFAIK the employer's NIC does not actually appear on the control account - the double entry for it is to debit wages expense and credit the PAYE/NIC account.

    As far as the control account goes, there is one credit entry for gross pay, countered by several debit entries - net pay, PAYE and employee's NIC, and any other deductions such as pension contributions. Employer's NIC isn't part of gross pay but a further cost to the employer, hence it isn't included here.

    That's how I was taught it, anyhow. Hope this helps a little and good luck with your simulation! :001_smile:
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