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Payroll Journal Entries

6 replies
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Hi

I'm dong my year end accounts but when I run my trial balance and P&L accounts my salary payments are double counted. They are being picked up from the journal entries made when the payroll is run then again when they are paid from the business bank account.

Can i delete the journal entries or will this effect my other salary accounts such as pension and NI liabilities?

Thanks

M

mv32Answer

Level 8

Not to worry, @Natalie46. I can help you remove double-counted salary payments.

In your case, yes, you can delete the duplicate journal entry so it won't double your payroll expenses. This won't affect other salary accounts since this shows as duplicate. Here's how:

Go to Settings ⚙️.
Select Chart of Accounts.
Look for the appropriate account for the transaction.
From the Action column, click Account history.
Select the journal entry and choose Delete.
Choose Yes to confirm that you want to delete the transaction.

For more details, check our reverse or delete a journal entry.

You now have the correct journal entry on your account. If you have additional questions, feel free to comment anytime. I'm always here to lend a hand. Stay safe.

M

mv32Answer

Level 8

Not to worry, @Natalie46. I can help you remove double-counted salary payments.

In your case, yes, you can delete the duplicate journal entry so it won't double your payroll expenses. This won't affect other salary accounts since this shows as duplicate. Here's how:

Go to Settings ⚙️.
Select Chart of Accounts.
Look for the appropriate account for the transaction.
From the Action column, click Account history.
Select the journal entry and choose Delete.
Choose Yes to confirm that you want to delete the transaction.

For more details, check our reverse or delete a journal entry.

You now have the correct journal entry on your account. If you have additional questions, feel free to comment anytime. I'm always here to lend a hand. Stay safe.

P

pbalogun

Hello

I only get the payroll expense from my outside payroll services. Do i need to create journal entries for the taxes, etc

Thanks

paul72

Level 6

Hi @pbalogun

Two ways to do this.

(1) if your payroll company gives you weekly/monthly PAYE/NI/Pension deductions amounts, you can enter them directly on to a Cheque - covering the payroll amount & creating the liabilities in one go.

See https://quickbooks.intuit.com/learn-support/en-uk/other-questions/payroll-monthly-manual-journals/00/1137288

(2) if your payroll company just gives you a monthly figure to pay to HMRC / Pension, then you will need to enter a Journal to create the liabilities followed by a Cheque to clear them.

I usually enter the Journals on the 5th (PAYE month end but you can use calendar month end if that aligns better with your payroll) with the clearing Cheques on the 19th.

Hope this helps.

N

Nikki_AR

I am having this same exact issue for a client I am working on. I'll figure out the reversing entry, however, WHY is this happening to stop it in the future? Is it going to have to be fixed each monthend??

R

Rasa-LilaM

QuickBooks Team

Hello, Nikki_AR.

I can help answer any questions you may have about QuickBooks. However, I have to ask for more details about the issue to ensure a timely solution.

To clarify, are you referring to the double-counted salary payments? Did you also create a journal entry for your payroll? I'd appreciate it if you could send a screenshot of what you're experiencing (visual reference). Make sure to gray out personal information for security reasons.

Thank you in advance. I'm looking forward to working with you again. Nikki_AR. Have a good one.

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