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Hi riskassessor
I will post a more detailed explanation in the 'How Do I' section of the help but the current solution for this would be as follows
Assuming you have the following values Net Salary (amount actually paid to you from bank account) = £100, Employee NI = £5, PAYE = £15 and Employer NI = £10, then you proceed as follows
Step 1: Reflect the payment
Go to Bank Transactions and ensure you are in the correct bank account. Use a 'Spend Money' and type 'General' transaction. Enter the net amount that is paid to the employee and assign this to the Salaries account in the line item
Step 2: Journal entry to reflect NI & PAYE due to HMRC
Create a New Journal with the following line items
Debit account Salaries £30 (£5+£15+£10)
Credit account 'PAYE & NIC Payable' £30
Step3: Pay the HMRC (usually quarterly activity)
This would be a 'Spend Money' type 'General' transaction. Depending on how you operate it might be entered manually or initiated from a Bank Statement import. The line item account should be the 'PAYE & NIC Payable' account to reduce the liability.
Please note that Step 2 is a simplified approach and that some companies look to split the various components of the Salary costs ie Employer NI, Employees NI, PAYE etc into separate ledger accounts. Please feel free to do so by entering multiple journal line items instead of just the one. If the account you require does not exist then you can create the account.
We do have some functionality enhancements on our To Do list that will allow Step1 and Step2 to carried out as one entry. As soon as this is in place, the 'How Do I' document will be updated to reflect this change.
Regards
Gidon