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Wages Journal
You will need the following Nominal Codes set up:
Wages Control
Staff Salaries
NI Control
Employers NI
Create a new journal entry and called it (month) wages.
Select from the drop down list on the left "Staff Salaries".
Here you must enter the total amount you are to be paying to your staff BEFORE tax and NI are deducted. This needs to be put in the DEBIT column.
Underneath this you must now select "Employers NI" from the drop down list. In the DEBIT column enter the total amount of NI you are due to pay for that month for all staff (not inclusive of tax)
Underneath this now select "Wages Control" from the drop down list. In the CREDIT column enter the total amount you are to be paying directly to the staff AFTER tax and NI has been deducted.
Underneath this select "NI Control" from the list. In the CREDIT column enter the total amount of TAX AND NI together that you are due to pay for that month for all staff.
If all figures have been calculated and entered correctly the two total boxes at the bottom of the page will balance.
When recording the wages coming out of your account you need to enter them directly into the bank area and assign them to the nominal "Wages Control".
When you come to pay the TAX & NI again you need to enter this directly into the bank area and this time assign it to the nominal "NI Control".
To find out how much you owe you can go to REPORTS > TRIAL BALANCE and select NI CONTROL.
Change the date period to whichever you to need to check and this will provide you with details of how much has been paid in that period and how much needs to be paid.
*PLEASE NOTE
This is a guideline for a simple wages payment journal. Items may differ when including payments such as directors salaries and maternity payments.