Home For AAT student members AQ 2013 AAT Level 2 (Level 5 in Scotland)
Current updates regarding coronavirus (Covid-19) and the precautions AAT are taking will be continually updated on the below page.

Please check this link for the latest updates:
We hope you are all safe and well and if you need us we will be here. 💚


BA2 - Study Tips For Payroll Section?

Netherwood26Netherwood26 Feels At HomeRegistered Posts: 78
Hi All

i'm trying to get my head around the payroll section and the wage/ salaries control account, wages expense account and PAYE/NIC account - any one have any study tips to help revising this section?

Thanks

martyn

Comments

  • JaffasGirlJaffasGirl Trusted Regular Registered Posts: 387
    The way i remember it was by drawing out two T accounts, one for the wages expense account and one for the wages control account, as all of the elements go through these. i.e

    Wages Expense A/C
    DR - Gross Pay (cr in Wages control)
    - Employers NIC (cr in wages control)
    - Employers Pension contribution (cr in wages control)

    (nothing goes on the credit side)

    Wages Control Account

    DR - Net Pay (CR BANK)
    - PAYE + NIC
    - Pension
    - Employers NIC
    - Employers Pension Contribution

    CR - Gross Pay
    - Employers NIC
    - Employers Pension

    Then all you need to do is CR/DR all the accounts listed - obviously there are no accounts for 'Gross Pay' or 'Net Pay', i put these so i remembered which figures to do!

    I hope this makes sense (and check to make sure its right!!) but i found this the easiest way to remember where everything goes. I also struggled with remembering how to deal with each little bit, so i tried to make it as simple as possible, and wrote this out as soon as the exam started. Made things a bit easier when i got to this question!

    If you need any help, let me know!
  • Netherwood26Netherwood26 Feels At Home Registered Posts: 78
    Cheers JaffasGirl really appreciate it
Sign In or Register to comment.