Get QBO to account for PAYE earnings

Muktar Ahmed · ‎November 17, 2022

Hi

I'm using QBO Simple Start as a sole proprietor. In addition to being self-employed on the side, I also have another job which is taxed in the usual way through PAYE payroll by my employer.

Is there a way I can get QBO to take into account my PAYE earnings when estimating income tax? It's currently showing that I owe no tax, which I know is wrong as a big chunk of my personal allowance is being used through PAYE payroll.

Many thanks in advance

Rubielyn_J · ‎November 18, 2022

Thanks for getting back to this thread, @Muktar Ahmed. Let me chime in and provide further details about your PAYE earnings.

Since you've mentioned that you're not using QuickBooks payroll services, we can create journal entries to record the accounting information for your payroll and side income data.

If you haven't, create new accounts in your Chart of Accounts to track your payroll liabilities and expenses.

Then proceed in recording the transaction.

Choose + New option in the upper-left corner.
Click Journal Entry.
Under Date, select the paycheque(s) date.
Input Entry # for the journal entry (Optional).
Enter the Debit and Credit accounts.
Select Make Recurring.
Enter a memorable Template Name and set the Template Type to Unscheduled; click Save Template.
Lastly, click Save.

Additionally, I've attached some articles you can utilize to help manage employee transactions in QuickBooks:

Feel free to get back in here if you have other questions about getting QuickBooks Online to account for PAYE earnings. I'll be around to help you. Keep safe!

View solution in original post

Ashleigh1 · ‎November 17, 2022

Hello Muktar Ahmed, Thanks for posting on the Community page, in order to help you can we ask which payroll it is you are using in QuickBooks is it our Standard payroll or our Advanced payroll?

Muktar Ahmed · ‎November 17, 2022

Hi Ashleigh1, I'm not using payroll within QBO at all, this is done through a different system by my employer. I use QBO as a sole proprietor for my side income outside my day job, and my QBO isn't connected to any form of payroll nor does it use QBO's Standard or Advanced payroll. My question is about how my QBO could be tweaked to take into consideration that I have earnings from a day job, the data for which is done through my employer's systems rather than my QBO.

Thanks in advance

AbegailS_ · ‎November 17, 2022

Hi there, @Muktar Ahmed.

I'm here to provide some insights about adding your salary and PAYE earnings.

Taxes are taken out of your money before you receive it if you are paid by an employer. Pay As You Earn is the term used for this (PAYE).

If you earn any other types of income, you may need to file a Self Assessment tax return in order to declare and pay taxes on your earnings to HMRC.

To learn more information on Income Tax, you can check out this article: Understanding Income Tax

If there’s anything else I can help you with, click the Reply button and post a comment. I’ll get back to assist further. Have a good one.

Muktar Ahmed · ‎November 17, 2022

This doesn't answer my question. I know how PAYE works. Is there a way to get QBO to take into account that I have a day job outside my QBO side income data, when estimating income tax? Or does that need to happen when filing self assessment?

At present it's showing I don't need to pay any income tax but this is wrong because QBO is assuming my side income is my only income, when it actually isn't

Rubielyn_J · ‎November 18, 2022

Thanks for getting back to this thread, @Muktar Ahmed. Let me chime in and provide further details about your PAYE earnings.

Since you've mentioned that you're not using QuickBooks payroll services, we can create journal entries to record the accounting information for your payroll and side income data.

If you haven't, create new accounts in your Chart of Accounts to track your payroll liabilities and expenses.

Then proceed in recording the transaction.

Choose + New option in the upper-left corner.
Click Journal Entry.
Under Date, select the paycheque(s) date.
Input Entry # for the journal entry (Optional).
Enter the Debit and Credit accounts.
Select Make Recurring.
Enter a memorable Template Name and set the Template Type to Unscheduled; click Save Template.
Lastly, click Save.

Additionally, I've attached some articles you can utilize to help manage employee transactions in QuickBooks:

Feel free to get back in here if you have other questions about getting QuickBooks Online to account for PAYE earnings. I'll be around to help you. Keep safe!

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Get QBO to account for PAYE earnings