Payroll Manual Journal Entries

dsbooks · ‎November 13, 2019

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:

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

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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