Need advice - cashflow & salaries

Discussion in 'Accounts & Finance' started by paulomunky, Jan 5, 2010.

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  1. paulomunky

    paulomunky UKBF Newcomer Free Member

    80 0
    Hey everyone,

    Could really do with some advice when it comes to accounting for salaries in my cashflow forecasts. I am fairly savvy with accountancy speak as I used to work at Sage so don't worry too much about using tech-speak

    Anyways I need to know at what level any staff salaries will appear in my cashflow & what effect they will have throughout - if this is straightforward.

    Any help you can give me would be great

    Thanks in advance
    Posted: Jan 5, 2010 By: paulomunky Member since: Dec 12, 2008
  2. semsley

    semsley UKBF Newcomer Free Member

    100 15
    You will need to allow for the NET amount of wages on the date of the month set to pay wages in your staff contracts. Then the cost of PAYE, Employers. employees NI, any student loan, ssp, smp and any recovery on the 19th of the following month. Any pension payments for the date on which the pension provider has set the monthly payment, likewise any attachments.

    Hope this is what you were looking for and helps.
    Last edited: Jan 5, 2010
    Posted: Jan 5, 2010 By: semsley Member since: Nov 3, 2009
  3. CNEO

    CNEO UKBF Newcomer Free Member

    31 5
    For a simple cash flow, cash flow =profit. Hence the salary cost through your profit & loss is gross wages + employers NI + benefits, where employers NI is 12.8% of salary (give or take).

    If you want to fine tune your model, you'll need to allow for the extra time you get to hand over the employers NI and tax and NI deducted from the employees wages. This is 19 days from the month end (or 19 days from the quarter end ff you're a small business).

    Let me know if you kneed help with the tax and NI to be deducted from the employees wages.

    Other considerations are bonuses and extra/reduced staffing.

    (sorry Semsley for any duplication)
    Posted: Jan 6, 2010 By: CNEO Member since: Dec 18, 2009
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