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Level 2

Set Up of Manual Payroll Accounts

I am trying to set up the chart of accounts and am struggling with where and how i should be setting up the payroll accounts so that we can manually enter payroll journals as our payroll is currently outsourced.

 

i have managed to set up the Gross Wages & Net Wages accounts but it is the PAYE, NIC and Pensions that i am struggling with - more so the detail type when within the current liabilities when setting up the accounts

 

Thanks 

Solved
Best answer November 28, 2018

Accepted Solutions
QuickBooks Team

Set Up of Manual Payroll Accounts

Hi Kirsty,

 

I have the following accounts as mine:

 

1) Name: Payroll Clearing - Type: Current Liability - Detail: Payroll Clearing
2) Name: Tax and National Insurance - Type: Current Liability - Detail: Tax and National Insurance

3) Name: Other Payroll Deductions - Type: Current Liability - Detail - Current Liabilities

4) Name: Payroll Expenses - Type: Expenses - Detail: Payroll Expenses

 

Payroll Clearing is the account i use to record the amounts owing out to my employees.

Tax and National Insurance is the account i use to record my liabilities to HMRC for both PAYE Tax and National Insurance

Other Payroll Deductions is where i record my liabilities to Pension or any Unique, custom deductions.

Payroll Expenses is where i record the gross cost of the payroll, so the gross costs on payroll hit your Profit & loss

 

Your setup may be different for your business, so my formal advice is; please speak to your accountant if you're unsure of the TYPE of accounts you should use. Hopefully the detail type's i've listed help you out.

 

Thanks,

View solution in original post

3 REPLIES 3
QuickBooks Team

Set Up of Manual Payroll Accounts

Hi Kirsty,

 

I have the following accounts as mine:

 

1) Name: Payroll Clearing - Type: Current Liability - Detail: Payroll Clearing
2) Name: Tax and National Insurance - Type: Current Liability - Detail: Tax and National Insurance

3) Name: Other Payroll Deductions - Type: Current Liability - Detail - Current Liabilities

4) Name: Payroll Expenses - Type: Expenses - Detail: Payroll Expenses

 

Payroll Clearing is the account i use to record the amounts owing out to my employees.

Tax and National Insurance is the account i use to record my liabilities to HMRC for both PAYE Tax and National Insurance

Other Payroll Deductions is where i record my liabilities to Pension or any Unique, custom deductions.

Payroll Expenses is where i record the gross cost of the payroll, so the gross costs on payroll hit your Profit & loss

 

Your setup may be different for your business, so my formal advice is; please speak to your accountant if you're unsure of the TYPE of accounts you should use. Hopefully the detail type's i've listed help you out.

 

Thanks,

View solution in original post

Level 2

Set Up of Manual Payroll Accounts

Thanks for your help =) 

 

I was aware that they would be a current liability

it was when looking at  the detail type drop down that I was a little unsure of as I couldn't see for the life of me the tax and national insurance option prior to asking and nothing else seemed to fit the requirements of the account. 

 

Now that you have confirmed it is there I have found it. 

QuickBooks Team

Set Up of Manual Payroll Accounts

Thats' great to hear Kirsty!

Generally; you can choose any detail type and name, it's the "Type" one (Liability, asset, expense, income or equity) that really matters for our system.

 

Don't hesitate to give us a message if you have any other questions ^_^

 

Thanks,