journal entry for salary

[SARAHQWIN]

hi,
I am wondering if anyone can help as I am struggling with working out cr and dr for the following for a salary journal entry: (I am using this data from a payslip)

Income tax
National Insurance
Pension (employee)
Student loan
Union
Total deductions
GROSS PAY
NET PAY
Employer National Insurance
Pension (employer)

Many thanks

 

[elaine@cheapaccounting]

debit wages / staff costs (or whatever P&L accounts you are using) gross, ers NI, pensions (company contribution)
credit bank net
credit PAYE creditor Tax, ees and ers NI
credit union
credit pension
credit student loan

 

[Tom McClelland]

Elaine is correct. But in passing...

It is worth noting that the student loan credit might as well be to the PAYE credit account as well; no need for a separate account for it because you pay it to HMRC all in one rolled-up payment.

And the credit to pension creditor should be the total of employees and employers pension contribution, ie the same as the amount to be paid to the pension company at some point.

 

[SARAHQWIN]

brilliant thank you!