Payroll Journal for addition to salary childcare vouchers

codheadabroad

Hi could someone help clarify if a journal is necessary for addition to salary Childcare vouchers paid from ltd company bank account direct to childcare provider, or should the cost be accounted for as an expense, No NI/PAYE is paid and amount is £243 per month thank you for any help

WarrenJAllen

It depends on the scheme.

Are the childcare vouchers being deducted from an employee's salary and then paid over to the childcare voucher provider?

codheadabroad

Childcare vouchers are in addition to directors salary not deducted.

fedemenni

firstly you will need to pay the invoices from the Childcare voucher provider, so you can use a control account to post the invoice and use the same code when deducting the £243 from the gross salary. (At least this was the way that I did it in the past):

Invoice processing: Dr Control a/c childcare voucher Dr VAT Cr Supplier
Payroll posting: Dr Gross Salary Cr Control a/c childcare voucher Cr PAYE Cr NI Cr Salary Control account

MichaelNorton

It would be in a wages control question as a deduction from employee expenses if we were in bookkeeping transactions

The books just do not give any technique for this question.

This video will set out the steps to produce the journal and childcare vouchers could be the same as trade union dues, a cycle to work scheme, csa court orders etc

https://m.youtube.com/watch?v=mbu6LKCjxIo

Hope this helps, as I said the Osborne book is truly depressingly bad for this question (not read the Kaplan one for this question)