Month End postings

ajmckell

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

Hi,

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

Hi Claire321.

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