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dsbooks
November 13, 2019
Question

Payroll Manual Journal Entries

  • November 13, 2019
  • 1 reply
  • 0 views

Hi, I would like to know what journal entries are required to manually file for payroll for the 2 months below:

 

April 18 PAYE:

Gross Salary: £702

Employee NI: £84.24

Employer NI: -

Income Tax: £140.40

Net Salary: £477.36

May 18:

Gross Salary: £702

Employee NI: --

Employer NI: £96.88

Income Tax: £140.40

Net Salary: £561.6

 

Below is the Quickbooks Payroll Template I want to use:

 

#AccountDebitsCreditsDescription
1Bank Account  Net Pay
2Payroll Expenses:Wages  Gross Pay
3Payroll Expenses:Taxes  National Insurance Employer
4Payroll Liabilities:HMRC  PAYE
5Payroll Liabilities:HMRC  National Insurance Employee
6Payroll Liabilities:HMRC  National Insurance Employer

 

Can I know the Payroll Journal Entries when issued to the employee? and also the Journal Entry when the expense is paid to HMRC?

 

I would really appreciate any help you would be able to provide.

I am now using the QB Payroll module, but this is regarding a period when I was doing it manually.

 

Kind regards,

David

    1 reply

    E
    EmmaM
    November 13, 2019

    Hello David

     

    Thanks for reaching out. We can not tell you exactly what to put where in the journal as we are not trained accountants, we can only give general guidance. Which Payroll are you now using?The best thing to do would be to replicate the journal entry that is being created through the payroll but with the dates mentioned above.

     

    When the expense is paid to HMRC it would be a case of expensing the liability which you increased in the journal.That expense will then reduce the liability and reduce the bank account.

     

    Emma

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