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Sage 50 help

wages show as a liability

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Hi, 

I am quite new to Sage Accounts, but I have used Sage 50 Payroll for 1 year. I am doing the accounts for a firm and I have a small problem. I posted the wages from Sage Payroll using a nominal link, I created a journal for the Employment Allowances and everything looks perfectly fine. However, the wages, PAYE and NI show as a liability in the balance sheet and also the balance on the current account ledger did not decrease after I posted the wages. Does anyone know how to mark these wages as paid? They are not showing when I am trying to do the reconciliation aswell, but I am assuming it is because they are not shown as being paid.

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By SXGuy
19th Oct 2019 16:37

Perhaps it's showing as a liability because the payment hasn't come out the bank account yet? Just a thought.

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By brumacosmin
19th Oct 2019 17:02

Well, yes, but my question was how to "tell" sage that the wages came out ?

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By Sandnickel
19th Oct 2019 17:50

Post a bank payment to the net wages account. The nominal link automatically puts it to a control account, I'm not sure if you can change that to the bank.

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By brumacosmin
19th Oct 2019 18:47

Thank you! I had to post a bank payment indeed to the net wages.

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By WhiteRose
19th Oct 2019 18:18

The gross wages and e’er NICs/pension costs will have gone in as a debit to a code in the 7000’s, the net wages and PAYE/NIC/pension liabilities will have gone as credits to codes in the 2000’s. When the payments go out of the bank the entries will debit the liabilities.

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By kevbrownuk
24th Oct 2019 21:59

Hi,

It may be worth having a look at the nominal link settings in Payroll for the next payrun. their should be an option in Company > Nominal link. Which allows you to set the Bank Nominal Code so that it can post the bank payment for you.

Have a look at this article as it may help. point 16 is the bit your referring too i beleive.

https://ask.sage.co.uk/scripts/ask.cfg/php.exe/enduser/std_adp.php?p_faq...

Thanks

Kevin Brown
Regional Development Manager
Sage UK

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