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Create a manual salary journal

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Summary

Record details of wages, tax, national insurance contributions and other employee costs in Sage Accounting and Accounting Start.

Description

When you create the salary journal, you'll record details of your payroll, net wages, and money owed to Revenue for tax, PRSI and USC. Record these as liabilities on your balance sheet to show money owed by your business. Enter these as a Credit in your payroll journal.

The other half of the payroll journal records the costs to your business. These appear on the profit and loss report and you enter these as a Debit value.

Your liability clears when you record bank payments to pay your employees and Revenue.

If you subscribe to both Accounting and Payroll, you can also save time. Send salary details directly to Accounting when you complete your pay run.

Read our article Payroll and Accounting integration.

Resolution

We recommend that you complete your salary journals at the end of each pay period.

Before you start

From your payroll system, you'll need the following information for each pay period:

  • Total PAYE (income tax)
  • Total gross pay
  • Total net pay
  • Deductions and attachments
  • Employee pension contributions
  • Employee USC contributions
  • Employee PRSI contributions
  • Employer pension contributions, if applicable
  • Employer’s PRSI contributions
  • Local property tax deductions, if applicable

How to create the journal 

  1. From Adjustments, choose Journals, then New Journal.
     NOTE: In Accounting Start, select More, choose Journals, then New Journal.   
  2. Enter the pay date for the relevant pay period.
  3. Enter a reference and if required a description.
  4. Enter the relevant amounts as debits and credits as shown in the following table.
  5. Make sure you clear the Include on VAT return checkbox. This isn't on the VAT Return.

The following table shows the details of a salary journal:

▼Example of a salary journal
Ledger Account code Ledger Account Description Debit Credit
2210 PAYE/USC to pay to Revenue Total tax deducted.   Credit
2220 PRSI to pay to the Revenue Total of employee and employer PRSI contributions.   Credit
2270 Universal Social Charge

The total USC deducted.

   Credit
2280 Local Property Tax (LPT) If applicable, the total value of LPT.   Credit
2250 Net Wages The total of the employees’ take-home pay.   Credit
2260 Pension Total employee and employer contributions.   Credit
7000 Employee Wages and Salaries The gross wages for all employees, not including statutory payments. Debit  
7020 Employers PRSI Contribution The total employer PRSI contributions. Debit  
7030 Employer Pension Total employer pension contributions. Debit  
7050 Other Deductions If applicable, the total of remaining employee deductions.   Credit

 

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