If you have employees then you will need to enter payroll information into Pandle to make sure your accounts are as accurate as possible.

Why do I need to enter wages adjustments?

Tell Pandle that you have employees

How to enter Wages Adjustments

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Why do I need to enter wages adjustments?

Rather than waiting until payday to categorise the payments you make to employees as part of your banking, the amounts owed should be entered into Pandle even if they haven't been paid yet. This is useful for lots of reasons, such as planning how to manage your cash flow in the future.

When you enter this information into your bookkeeping it should include:

  • The wages you owe to employees

  • Tax and NI deductions owed to HMRC

  • Employer's NI contributions

  • Any pension contributions

For example, let's say you owe £1,000 to HMRC for April's tax and National Insurance, but don't pay it until May.

Your accounts still need to show how much is owed to HMRC at the end of April, so simply processing the payment from the bank in May would mean that this liability wouldn't show in April's reporting.

Entering adjustments (sometimes known as journals) on each pay date will update the relevant categories in Pandle, so that your reporting figures are correct. For instance, 'Tax and NI owed to HMRC', and 'Wages owed to employees'.

Tell Pandle that you have employees

To keep your bookkeeping as straightforward as possible, Pandle uses dynamic menus. This means that you'll only see menu options for features that you enable in Pandle.

To enter wages adjustments, you'll need to tell Pandle that your business has employees. You'll only need to change this setting once.

Click the 'Settings' icon, and select 'Company Settings'.

Select the 'Financial Info' tab, and click the option 'Does the business have employees?', and then scroll down and click 'Update Company' to save your changes.

How to enter Wages Adjustments

You can start a new wages adjustment either through the Quick Links menu, or through the Categories screen.

To use the Quick Links menu, click the 'Quick Links' icon, and select 'New Wages Adjustment'.

To start a new wages adjustment through the Categories screen, click 'Accounting' in the Pandle navigation, and select 'Categories'.

Then click 'Add/Change Items', and select 'New Wages Adjustment'.

Then use the form to enter your wages adjustment. The table below explains what each field means.

Date

The payroll pay date

Description

Usually the week or month the wages adjustment relates to

Net wages

The total actually due to be paid to employees (i.e. after tax and NI is deducted)

Tax

The total tax deducted from all employees for the pay period

Employee's NI

Total employee's NI deducted from all employees for the pay period

Employer's NI

The employer's NI which is due from your business for the pay period

Employee's pension contributions

Total amount contributed by the employee to their pension scheme for the pay period (if applicable)

Employer's pension contributions

Total amount contributed by the employer to their pension scheme for the pay period (if applicable)

You should be able to find the information that you need from your payroll software, or from your payroll provider. The example below shows a typical payroll report.

Click 'Save' to confirm your Wages Adjustment. The balances of your categories will update automatically, and the expenses are now included in Pandle (even though you might not pay employees until later).

You'll also be able to see the amounts owed.

When you make the actual payments and confirm your banking in Pandle, you'll assign these categories to the transactions.

Please note: If your payroll is very complex, for instance if you have other deductions to include, then the wages adjustment form will not be suitable, and you will need to enter regular adjustments into Pandle instead.

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