It's been a couple of years since I've had to do a payroll journal and I've just taken on the accounts of a small sub of the company that I work for. I'm not sure if I'm getting the journal entries wrong, or if the cashier has paid the wrong net pay figure (...probably the former!).
So, its a small payroll of three people and I have the following...
Salary - 4,636.67
Ee's Pension cont - 9.18
Total Gross pay - 4,645.85
Ee's NIC - 303.29
PAYE - 242.60
Student loan - 13
Unpaid leave - 69.23
Net Pay - 4017.73
Er's NIC - 348.79
Er's pension - 11.47
So, the way I see it is this....
|Er's NIC P&L||348.79|
|4,936.88||4,946.06||- out by (9.18)|
No matter how I do this, i'm always out by the Ee's pension amount - should the gross pay figure be reduced by the ee's pension? ...as this is a salary sacrifice, I'm assuming that the total P&L cost of the salary is the gross pay and the ee's pension (which is how the report presents it).
(The net pay figure matches the payroll reports and the amount that has gone out of the bank).