PAYE Reconciliation

[Leslie66]

I am reconciling payroll from trial balance for year end and wanted to check I am doing this correctly...

Opening balance/balance from previous accounts: £16.63 (old balance owed to HMRC)

Trial Balance at year end £624.55 (debit balance).

Transactions during the year on nominal ledger - £32.65, £202.53, £406.

Balance on Trial Balance £624.55
Payments during the year £641.18
Balance £16.63

Although if correct what would be the other entry as balance sheet does no longer balance with trial balance figures?

 

[MyAccountantOnline]

I am reconciling payroll from trial balance for year end and wanted to check I am doing this correctly...

Opening balance/balance from previous accounts: £16.63 (old balance owed to HMRC)

Trial Balance at year end £624.55 (debit balance).

Transactions during the year on nominal ledger - £32.65, £202.53, £406.

Balance on Trial Balance £624.55
Payments during the year £641.18
Balance £16.63

Although if correct what would be the other entry as balance sheet does no longer balance with trial balance figures?

What is the nominal ledger account?

If your TB balances your balance sheet must balance - it doesn't mean the entries are correct but its impossible for it not to balance. You need to check that all of the figures on the TB are on the balance sheet and P&L.

 

[Leslie66]

Trial balance balances as at year end with the £624.55 debit balance but does this not need reconciling for for year end / year end accounts?

With the above reconciliation the Balance Sheet no longer balances.

The nominal ledger accounts is P.A.Y.E - has some NI and payments to HMRC in respect of p11d.

 

[MyAccountantOnline]

Trial balance balances as at year end with the £624.55 debit balance but does this not need reconciling for for year end / year end accounts?

With the above reconciliation the Balance Sheet no longer balances.

The nominal ledger accounts is P.A.Y.E - has some NI and payments to HMRC in respect of p11d.

If the £624.55 is PAYE/NIC due for the year it will be in the P&L.

You should most certainly be reconciling the balances.

As I mentioned previously it is quite possible to have a balanced TB and set of accounts which balance but which aren't correct.

 

[Leslie66]

On the nominal activity these payments were posted to 2210 (P.A.Y.E) and the bank account so maybe not charged to the P&L?

Is employer NI for employee benefits tax deductible?

 

[MyAccountantOnline]

On the nominal activity these payments were posted to 2210 (P.A.Y.E) and the bank account so maybe not charged to the P&L?

It sounds to me like someone has simply debited the PAYE paid to the PAYE control account without also posting the PAYE/NIC due which would be a debit to the P&L and a credit to the PAYE account.

Is employer NI for employee benefits tax deductible?

Yes