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Childcare Vouchers

We provide childcare vouchers to our employees. We use Sage as our book-keeping software. Could somebody help us with the accounting treatment of this,please and how do we post this into Sage?

Thank you

Mona
Mona

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Assuming you use a third party scheme administrator to supply th
... then you will be receiving invoices for the vouchers claimed ahead of the payroll though which the salary sacrifice is made, and expensing the value to a relevant P&L (or equivilent) expense code for staff costs.

When the pay costs are calculated (you don't mention SAGE payroll so have assumed that this is done outside the accounting system and entered via journal vouchers), enter the reduced gross salary of the employees (net of the childcare voucher deduction) in place of the gross value, and the paycost journal will balance, with the overall effect being that the cost of the vouchers and the payroll are both refelected in the cost code.

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