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 Using Purchasing to record wages

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Posted by SueM

Using Purchasing to record wages

In getting ready for Making Tax Digital I am considering recording all my expenses on Easify, including employee costs. My first problem is deciding how to record payment of wages. I am putting full wage against employee as a supplier but can't make up my mind whether it is best to put the whole amount as paid or only the net pay and then account for tax, NI and pension separately. I would appreciate feedback from anyone already recording employment costs on Easify.

Posted by Alison

Re: Using Purchasing to record wages

At Easify, we use Easify to record our monthly wage bill. We enter the NET pay under a purchase to the employees and then raise separate purchases for the PAYE & NI payment to HMRC and another separate purchase for the pensions. I hope this helps.

Posted by SueM

Re: Using Purchasing to record wages

Alison said:

At Easify, we use Easify to record our monthly wage bill. We enter the NET pay under a purchase to the employees and then raise separate purchases for the PAYE & NI payment to HMRC and another separate purchase for the pensions. I hope this helps.

Thank you so much for your quick reply. This sound slightly different to my original plan as I was going to put in gross pay but that would have left me a problem in accounting for dividing the payments between employee and HMRC. Your way makes much better sense so I am glad I asked.

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