Payroll Journals

[SHARPYWAN]

Each month i do the following payroll journal, which always balances.

Dr P&L Gross Wages
Cr B/S Net Pay
Cr B/S PAYE & EEs NI
Dr P&L Ers NI
Cr B/S Ers NI
Cr P&L EEs Pension

However this month i have a few instances of wage advances paid to employees, then deducted the following week, meaning on the week i deduct the advance i have a debit balance.
So do i credit B/S Net Pay or P&L Gross Wages with the advance amounts deducted?

Thanks

 

[Cloud Accounting]

I would create a separate staff loans a/c in BS. Debit when you pay an advance & credit when you recoup the following week. That should balance out your Jnl.

 

[Bobbo]

Each month i do the following payroll journal, which always balances.

Dr P&L Gross Wages
Cr B/S Net Pay
Cr B/S PAYE & EEs NI
Dr P&L Ers NI
Cr B/S Ers NI
Cr P&L EEs Pension

However this month i have a few instances of wage advances paid to employees, then deducted the following week, meaning on the week i deduct the advance i have a debit balance.
So do i credit B/S Net Pay or P&L Gross Wages with the advance amounts deducted?

Thanks

How did you post the advances? That is the key to determine how you account for the advance being taken off the next week's pay.

 

[SHARPYWAN]

How did you post the advances? That is the key to determine how you account for the advance being taken off the next week's pay.

Just posted through payroll as normal, so do I 1) CR Gross wages or 2) Dr Net Pay ? Thanks

 

[Scalloway]

Dr Net pay with the advance
Dr Net pay with the wage payment actually made.