Salary Payment

This screen provides a simple method of recording externally calculated payroll details in Liberty Accounts. It is only suitable for a limited number of employees because each one is entered individually. If you do not wish to enter salaries employee by employee you should use the journal entry transaction.

By default the expense is charged to the Administration area of the Profit and Loss Account. Only the net pay to the employee is recorded in the bank account. An additional payment transaction will be required to make the paye and NIC deductions payment to the HMRC.

Payment Type

The salary payment journal template works in one of three modes: -

• Liability Only: Creates a single journal with using the wages liability account.
• Liability & Cheque: As for 'Liability Only' but also creates a cheque transaction paying the employee.
• Liability & BACS: As for 'Liability Only' but also creates a BACS transfer transaction paying the employee.
• Transfer to Directors Loan Account: As for 'Liability Only' but the employee payment is recorded in the selected director's loan account.

Employee

Externally calculated salaries are entered employee by employee to facilitate IR35 reporting by employee which is important for many small businesses. If you are using Liberty Accounts branches the employee expense will be recorded against the appropriate branch as defined in the employee record.

Account

If you choose to create the wages liability only then there is no need to select an account. If you choose to create a liability and to post a cheque or BACS transaction select a bank account. If you choose to create a liability in a directors loan account you will need to select one of the director loan accounts.

Cheque Number/Reference

Enter the cheque number or reference used to make this salary payment.

Payment Date

Enter the date of the payment. The date can either be entered manually or selected from the pop-up calendar by clicking the  icon. The As At Date must be entered in the format DD/MM/YYYY, for example, 01/01/2000.

When entering dates manually, a date guessing routine speeds up the input by taking the user input and assuming the missing month and or year based on the current date as the user leaves the field i.e.

the date today is 30th October 2009

• User enters 15 or 15/ and tabs - field displays 15/10/2009
• User enters 15/9 or 15/9/ and tabs - field displays 15/9/2009

Wages

Enter the gross amount of wages.

Sick Pay

Enter the amount of any sick pay.

Maternity Pay

Enter the amount of any maternity pay.

Paternity Pay

Enter the amount of any paternity pay.

Adoption Pay

Enter the amount of any adoption pay.

Employers NI

Enter the amount of employers NI.

Employees PAYE

Enter the amount of the employees PAYE.

Employees NI

Enter the amount of employees National Insurance.