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The Book-keepers Forum -> Book-keeping Software -> Sage 50 Accounts - Wages Journal Entries
Post Info TOPIC: Sage 50 Accounts - Wages Journal Entries
djzolla


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Sage 50 Accounts - Wages Journal Entries
 

Hi all

Hope you are keeping well.

Ok i am doing my first Journal entries for wages in Sage. I have attached a word doc screenshot for you to view.

Is this correct or do i need to add ER NI somewhere?

In Bank/Payment i did single entries for Net Wages, ER NI, EE NI and PAYE.

Thanks for reading.

Paul


-- Edited by djzolla on Wednesday 2nd of February 2011 08:28:21 PM

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Rhianrach


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You would need to post your ERSNIC to somethin like 7001 and your NI Liability account 2211 should be EESNIC like you have got plus your ERSNIC.


Gross pay 7000 1764.71 DR
ERSNIC     7001     20.00 DR (As an example only)
Net pay     2220                    1377.95 CR
PAYE         2210                     245.00 CR
NIC           2211                     161.76 CR (141.76 + 20.00)
Total                  1784.71       1784.71

-- Edited by Rhianrach on Wednesday 2nd of February 2011 08:57:49 PM

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Steve

Donna CBK


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Just to confirm Sage Recommendation on Employers NI is 7006

Debits
Gross Pay = 7000
Employers = 7006
SMP = 7011
SSP = 7010
Credits
Total NI to be paid = 2211
PAYE = 2210
Net Wages = 2220


If using Sage payroll system you can ofcourse set system to enter journal for you - Company / nominal settings

good luck


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Donna - Complete Book-Keeping Ltd & CBK Training

Sage 50 One Day Workshop  - West Drayton (Near Heathrow)

Online Sage and microsoft training

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djzolla


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Hi Donna

Sorry you have totally confused me now:) sorry i am still new to all of this and don't understand what you mean

What is SSp and SMP please?


-- Edited by djzolla on Friday 4th of February 2011 11:33:37 PM

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Dalbir


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Hi Paul
SSP is Statutory Sick Pay and SMP is Statutory Maternity Pay.

Looking at Donna's Sage enteries:

 
I thought SSP and SMP figures should be credits rather than debits when journaling to the ledger as they are recoverable amounts from HMRC and thus reduce PAYE/NI liability to HMRC.  

the gross salary figure would contain gross amounts to the person on sick  (or maternity) leave.  

Dalbir

 



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Donna CBK


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Apologies shouldnt have posted in such hast while in bed with cold.

you are correct, SSP/SMP are Credits
I had broken down into PNL & BS rather than debit / credit

N/C Name Debit Credit
7000 Gross Wages
The total of gross wages for all employees. Debit
7006 Employers NI
The total employer NI contributions. Debit
2210 PAYE
The total PAYE deducted. Credit
2211 National Insurance
The total employer and employee NI contributions.
Note: If you receive an employee or employer NI rebate, the value should be posted to this nominal code as a debit. Credit
2214 Student Loans
If applicable, the total of student loan deductions made. Credit
2215 Attachments
If applicable, the total of attachments deducted from employees net pay. Credit
2216 Deductions
If applicable, the total of remaining employee deductions, excluding attachments, and student loans. Credit
2220 Net Wages
Total net wages, that is the total of employees' take home pay. Credit
If your payroll includes pensions you need to post the following two entries:
2230 Pension Fund
Total employer and employee pension contributions. Credit
7007 Employers Pensions
Total employer pension contributions. Debit
If your payroll includes SSP, SMP, SPP or SAP Reclaimed you need to post the following entries:
7010 SSP Reclaimed
Total SSP reclaimed. Credit
7011 SMP Reclaimed
Total SMP Reclaimed. Credit
7012 SPP Reclaimed
Total SPP reclaimed. Credit
7013 SAP Reclaimed
Total SAP reclaimed. Credit
2211 National Insurance
Total SSP/SMP reclaimed. Debit


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Donna - Complete Book-Keeping Ltd & CBK Training

Sage 50 One Day Workshop  - West Drayton (Near Heathrow)

Online Sage and microsoft training

www.completebookkeeping.co.uk
djzolla


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Hi there

When i debit the bank account do i breakdown the EE NI and ER NI for payment? Generally I have been making 4 payments from the bank area namely, EE NI, ER NI, PAYE and Net wages. Is this the correct way of doing things?

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Dalbir


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Hi Paul

There are two routes I advise Arithmo users who have asked about journaling payroll to do:

(1) set up a PAYE/ NI balance sheet account.

at point of payroll, CR PAYE/NI account

when you pay HMRC after payroll month, do a journal DR PAYE/NI and Cr Bank.


or

(2) CR Bank PAYE/NI and not use PAYE/NI control account. At end of month when doing the bank rec; leave as unreconsiled item and reconcile the entry next month when you physically pay HMRC (before 22nd of the next month- if paying HMRC electronically).

Dalbir

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From £20 plus Vat per client per annum; No more excuses for small business owners and their accountants in managing their books on spreadsheets.
kimrs007


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Hi Donna, I have been using sage for coming up to a year now but have never needed to deal with SPP until now. I found your breakdown of all the n/c accounts and debits/credits extremely useful! on our payroll summary the employee with SPP had a 'discount' from their normal gross wage for the two weeks they were off. Our payroll summary shows us claiming back the SPP they receive and the NI ascociated with it. So do i need to set up a new N/C i.e. 2216 Deductions for this 'discount' and an 'SPP reclaimed' N/C? Also when i post the SPP and discount to the relevant N/Cs how do i then clear these? normally the PAYE & NI N/Cs and wages control acc are cleared when i put throught the bank what we paid over to HMRC and the wage payments? many thanks

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Kim Ellison
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Hi Kim,

Is the "discount" just a deduction from their normal gross SPP or is it something that has to be paid to HMRC? If it is just a deduction from the gross pay then I would just enter the gross figure less the deduction in N/c 7000 Gross wages.

You will need to set up or rename a N/c in the 701x range for the SPP reclaimed. You won't need to clear them as the opposite entries are posted as debits to your PAYE & NI Ctrl account nominal, thus reducing the balance subsequently paid to HMRC.

The SPP journal will be something like this:-

Debits
2210 PAYE & NI Ctrl (SPP recl & NI comp)

Credits
701x SPP reclaimed
701x NI compensation

The amount of SPP itself is included in the gross wage figure as a debit.

Hope this makes sense.

Pauline

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Pauline
kimrs007


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Hi Pauline,

Thank you ever so much! Your explaination makes perfect sense.

The deduction was on their normal gross wage to remove 2 x weeks of their normal wage and then in place they received 2 x weeks of SPP. So do you suggest putting their gross wage less the deduction + the total SSP into the gross wage N/C?


I will set up two new N/C for:
701x SPP reclaimed
701x NI compensation

as you have suggested and put the debit sides to the PAYE & NI control.

Many thanks again for your help.

x x x

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Kim Ellison
Stardoe


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No problem Kim. Why did you have to remove 2 weeks of their normal wage? Can you not just delete the employee's normal wage and then enter the SPP when you are maintaining the employee's pay for the period? I have used Sage Instant for payroll, so don't know if you are using this or Sage 50?

Pauline

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Pauline
kimrs007


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Hi pauline, We have our payroll prepared externally then i just put it through sage 50 and pay it using the payroll summary and hmrc remittance from the accountants. Does that alter your previous advice? Or can I just post the spp as you suggested? X

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Kim Ellison
Stardoe


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Hi Kim.....no that doesn't alter my advice.....go ahead and post as I suggested 

Pauline



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Pauline
kimrs007


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Hi pauline, I have posted the wages as per your instructions, paye and NI accounts and wages control are now showing the corrrect balances. Really appreciate your help. Many thanks again! X x x

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Kim Ellison
Stardoe


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No problem 

Pauline



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Pauline
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