Month End postings

ajmckell Registered Posts: 7 New contributor 🐸
Hi. I have recently started preparing monthly management accounts for the first time and qualifying and think I have been missing something out. When I am putting through wages I am debiting the gross cost and crediting net wages and PAYE/NI. I am not doing anything with Employers NI though, should I be and what should the entries be? I think I should be debiting Gross Wages cost and crediting PAYE/NI but having not done this before I would appreciate confirmation that this was the correct thing to do. Thank you


  • Claire321
    Claire321 Registered Posts: 209 Dedicated contributor 🦉

    That would be correct you need to debit gross wages cost (expense nominal code) with the amount of employers NI, and then credit PAYE/NI with the amount of employers NI.

    Some companies / people have separate expense nominal codes for gross wages and employers NI and some lump it all together.

    The balance on your PAYE/NI account should show the total PAYE and NI (employee and employer contributions) to be paid on to HMRC for the period (month / quarter) depending on the size of the employer).
  • ajmckell
    ajmckell Registered Posts: 7 New contributor 🐸
    Hi Claire321.

    Thats what I thought but it's good to have confirmation when doing it for the first time. Thank you
Privacy Policy