How to Post a Payroll Journal in Fincon

So today you will get to know about how you can get your payroll journal set up in Fincon so if you’re using Fincon to do bookkeeping but maybe we do your payroll for you and send you payroll reports we’re gonna show you how to get that data into your Fincon account so what often happens if people just post the payments to the individual into HMRC directors payroll and the best way to do it is get a journal in there first and the really good reason is it because it highlights them if for example maybe you miss delicate payment don’t pay for things that you think you’ve paid it will highlight that those items are on paid in your Fincon data.

 

So let’s jump over into Fincon you can see we’re here now on Fincon we’ve got the new menu systems which came in in November 2018 so you’d start by clicking on accounting at the top scrolling your way down to manual journals if for any reason you can’t see this get in touch with us or wherever your kind of subscriber is for Fincon it might be that we haven’t quite got permission to see everything but hopefully you can see accounting and then that many times by clicking on that you’ll see that it loads a new screen and it will list any journals that have already been put into the system under this posted tab  a new journal you’ll open up a screen that looks a little bit like that the invoice and bills screen that you’re possibly seen before and here we’re going to set up the basics of a payroll journal with some made-up information now what we’d normally do is maybe we’d call this payroll and then the month we’re dealing with so let’s put in February two thousand 19 you put in the date normally the day that your payroll once some people like to put it as the first of the month so it’s always in the report from the very start of the month it’s entirely up to you and next we’re going to put through there say let’s say our payroll is paid on the 25th each month so we’re gonna put that in there then we need to break down the payroll journal into the different sections.

 

So we’ve got the cost to the business and this is what hits your profit and loss report so that will be the gross cost of employing people that goes on the left hand side this debit column that you can see in front of you or on the right hand side you’ve got the credit column the credit is effectively who you need to pay so let’s get started so we’ll start with gross wages here and we’re going to put this into our balance sheet and it’s going to go under the salaries code now sometimes you might spit this out and have directed separately that is kind of often something we would recommend but for now we’re going to try and keep this one really simple, so I’m going to say that the gross wages are two thousand pounds I’m going to be making up figures here then why not make any sense but it’s just to show you how to do the journal on top of that we’re gonna have employers and nationally insurance and employers and  that is effectively  the cost of the company of the employers national insurance so it goes on top of the gross salary it’s not the anigh that gets deducted before,you get to the amount you pay the employee this goes on top so we’re going to put in that that’s 100 pounds so you can see there in the subtotal under the debit column the left-hand column that the total cost of our business so far is 2100 pounds.

 

 Now with auto enrolment and generally in pensions you might have a pensions cost – so as we start typing in pension you can see with all of these as I start typing in what it  want Fincon will pick up the items and they’re kind of ledges that the lines the categories whatever you want to call it there might be most relevant solicit pension costs again I’m going to put in 100 pounds here keep it nice round figures, so now we can see our total loss cost of the company is 2,200 pounds so where do those things need to be paid so what you first have possibly the most important one in in most people’s eyes is the net wages so the net wages is the amount actually needs to be paid to the people you employ to your team so gonna make up some figures here and we’re going to say that the net wages that need to be paid after the deduction of income tax employees and IC employees pension contributions may be student loans is 1500 that’s the amount we have to pay to the individual then you have PAY your income tax I’m gonna say here the amount we need to pay HMRC for pay your PA ye is going to be a bit less than that three hundred and fifty pounds and we have national insurance and this is going to be both the employee and employers and  so you can do these a separate lines.

 

 If it makes it clearer for you but we would only group them so you can see that on the second ladder we’ve got a hundred pounds of employers and national insurance and we’re going to assume here that we also have 150 pounds of employees national insurance that’s essentially what you’re paying to HMRC on behalf of that employee so you call this line and I there’s an ni CE line and we’re going to say that that all goes in there so 100 plus 150 is 250 pounds okay sorry it’s just changed other mouths come back ,we like and then we’ve got the potato pension cost so pensions payable it’s the line that will include both the pension cost for the employer and the amount is deducted from the employees pay and that’s the kind of balance and figure we’ve got left that’s how to fit about we said before you might have say some like a student loan or other kind of cost of deductions that go in there you’re just going to make sure that that left-hand column comes back to the total cost of your payroll so the gross salaries the pension cost employees and  the cost of any other items and on the Left you’re breaking down who it is those different items need to go to do and that’s it that’s the basic of how to do a payroll journal in Fincon.

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