At the point of approving the payroll, an automatic journal is posted to the Chart of Accounts detailing the following:
- Employee net wages due to be paid to the employee
- Liabilities to be paid to HMRC
- Liabilities to be paid to other agencies, such as pensions and childcare vouchers
When the employer is ready to make these payments from the bank they must do so manually as there is no automatic payment function in PaySuite. There are two options to choose from when posting the payments; as a journal entry or as an expense.
Post Payments as a Journal Entry
- Click the Plus sign icon at the top of the screen and select Journal Entries.
- From a new journal entry, on the top line, select the bank account you wish to pay from.
- On the same line, enter the total liability amount as a Credit. The amount should be the total of the net wages dues to the employees plus the amount due to HMRC plus the liabilities due to other agencies, if applicable.
- On the second line, select the Payroll Clearing account and the Debit column will automatically populate accordingly, you will need to edit this amount to show the Net Wages amount.
- On the third line, select the Tax and National Insurance account and edit the Debit amount to show the amount due to HMRC.
- If there are liabilities due to other agencies, enter more journal lines to relate to these payments. In this example the fourth line will be to Other Payroll Deductions and the fifth line to the Payroll Clearing account.
- Click Save to post the journal and complete the payment process.
Post Payments as an Expense
- Click the Plus Sign icon at the top of the screen and select Expense.
- At the top of the screen you can choose a payee if required, however this is not necessary. Select the bank account you wish to make the payment from.
To pay employees:
- Under the Account Details section, select the Payroll Clearing account. Enter the amount you are paying to your employees, refer to the automatically posted journal if you need to check the amount.
- Click Save.
To pay HMRC:
- Under the Account Details section, select the Tax & National Insurance account. Enter the amount you are paying to your HMRC, refer to the automatically posted journal if you need to check the amount, ensure you include both the PAYE, NIC EEs and ERs figures combined.
- Click Save.
To pay other liabilities:
- Follow the steps above but select the corresponding account for the liabilities. In this example, Other Payroll Deductions.