How to pay an employee by bank transfer

Hugo5 · ‎August 18, 2021

Hi there,

I've set up payroll and run it so now my payroll journals are published and payslips generated - how do I now actually pay the employees and National Insurance?

Do I pay the employee their Net Pay through my bank account then record it as an expense? Do I need to link it to the journal entry?

Where and how do I then pay the NI liability?

Thanks

Hugo

Angelyn_T · ‎August 19, 2021

Thank you for getting back, Hugo.

Yes, you can pay your employee through your bank account. When you're about to pay your National Insurance liability, you can create an expense transaction. Make sure to input the correct account which shows the balance on your Chart of Accounts or Balance Sheet. If necessary, you can seek help from your accountant for further assistance.

For more tips about running payroll and paying liabilities in QuickBooks, you can open this article: QuickBooks Standard Payroll Journals and Paying Liabilities.

I'm looking forward to hearing from you again. If you have any other QuickBooks questions, please feel free to add a comment below. Cheers for more success!

View solution in original post

Ashleigh1 · ‎August 18, 2021

Hello Hugo,

Welcome to the Community page,

Can we ask which payroll it is you are using in Quickbooks it it our Advanced payroll or our Standard payroll?

Hugo5 · ‎August 19, 2021

We are using the standard payroll

Angelyn_T · ‎August 19, 2021

Thank you for getting back, Hugo.

Yes, you can pay your employee through your bank account. When you're about to pay your National Insurance liability, you can create an expense transaction. Make sure to input the correct account which shows the balance on your Chart of Accounts or Balance Sheet. If necessary, you can seek help from your accountant for further assistance.

For more tips about running payroll and paying liabilities in QuickBooks, you can open this article: QuickBooks Standard Payroll Journals and Paying Liabilities.

I'm looking forward to hearing from you again. If you have any other QuickBooks questions, please feel free to add a comment below. Cheers for more success!

Hugo5 · ‎August 19, 2021

Ok, thanks.

And if I was to use the Advanced Payroll can this all be automated? The company bank account is linked so can the employee payments and NI liabilities be paid automatically once payroll is run?

Thanks

Hugo

Ashleigh1 · ‎August 19, 2021

Hello Hugo, If you have a look at these links it tells you all about advanced payroll and you can set up and do BACs payments with advanced payroll.

Hugo5 · ‎August 19, 2021

Thanks.

I see that BACS can be set up to pay salaries but for automating paying employer liabilities it seems you'd have to input the individual liability for each employee, is there a way to simply automate the payment of the amount on the P32?

GeorgiaC · ‎August 19, 2021

Hi Hugo5, there's no automated feature to pay liabilities, these payments would need to be made manually directly to HMRC. :)

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