| | Record a salary journal - UK only |
| Description | After each payroll period, update Sage 50 Accounts to include employee payments, for example wages, National Insurance (NI), Statutory Adoption Pay (PAYE), and pension contributions. Post salary journals to your Nominal Ledger to update your profit and loss and balance sheet nominal codes accurately. Post bank payments to your balance sheet liability nominal codes, which clears the liabilities and reduces your bank by these costs. If you're using Sage 50 Payroll, use the nominal link to post the salary journals. |
| Resolution | ▼ Nominal codes If you're using the Sage default nominal structure, you'll already have some of the required nominal codes. You'll need to create them if these codes don't exist. In addition to nominal code 7000, the default nominal structure includes nominal codes 7001 to 7005. These are optional codes that you can use to split your gross wages into subcategories. The examples below use the nominal code 7000 for Gross Wages. | Nominal code | Name | Report | Report section | | 2210 | PAYE | Balance Sheet | Current Liabilities | | 2211 | National Insurance | Balance Sheet | Current Liabilities | | 2214 | Student Loans | Balance Sheet | Current Liabilities | | 2215 | Attachments | Balance Sheet | Current Liabilities | | 2216 | Deductions | Balance Sheet | Current Liabilities* | | 2217 | Apprenticeship levy | Balance Sheet | Current Liabilities | | 2220 | Net Wages | Balance Sheet | Current Liabilities | | 2230 | Pension Fund | Balance Sheet | Current Liabilities | | 7000 | Gross Wages | Profit and Loss | Overheads | | 7006 | Employer's NI | Profit and Loss | Overheads | | 7007 | Employer's Pension | Profit and Loss | Overheads | | 7011 | SMP Reclaimed | Profit and Loss | Overheads | | 7012 | SPP Reclaimed | Profit and Loss | Overheads | | 7013 | SAP Reclaimed | Profit and Loss | Overheads | | 7015 | Apprenticeship levy | Profit and Loss | Overheads | *Depending on the reason for the deduction, it can be an overhead.
▼ Create a nominal code - Click Nominal codes then click New.
- Complete the Nominal Record window as follows:
| N/C | Enter the number for the nominal code you want to create, for example, 7012. | | Name | Enter the name for the new nominal code, for example SPP Reclaimed. | - Click Save then click Close.
When you create a new nominal code, check your Chart of Accounts to ensure you include this nominal code in the correct range.
▼ Post the salary journal If you're using Sage 50 Accounts Professional, you can use the Memorise and Recall options to create a skeleton salary journal. To discuss moving to this variant, leave your details and we'll be in touch - Click Nominal codes then click Journal entry.
- Enter a reference and the date for the salary journal.
- Enter the relevant details on the Nominal Ledger Journals window, for example:
The balance for the whole salary journal must equal zero before you can save.
Salary journal example | N/C | Name | Debit | Credit | | 7000 | Gross Wages - The total of gross wages for all employees, before employee pension deductions. | Debit | | | 7006 | Employers NI - The total employer NI contributions. | Debit | | | 2210 | PAYE - The total PAYE deducted. | | Credit | | If you receive a tax rebate, post the value to this nominal code as a debit and net wages credited. | | 2211 | National Insurance - The total employer and employee NI contributions. | | Credit | | If you receive an employee or employer NI rebate, post the value to this nominal code as a debit and net wages credited. | | 2214 | Student Loans - If applicable, the total of student loan deductions made. | | Credit | | 2215 | Attachments - If applicable, the total of attachments deducted from employees net pay. | | Credit | | 2216 | Deductions - If applicable, the total of remaining employee deductions, excluding attachments, and student loans. | | Credit | | 2220 | Net Wages - Total net wages that are the total of employees' take-home pay. | | Credit | | 2250 | Childcare vouchers - For more information, follow our salary journal for Childcare Vouchers article.
| | Credit | Pensions If your payroll includes pensions you need to post the following two entries: | 2230 | Pension Fund - Total employer and employee pension contributions. | | Credit | | 7007 | Employers Pensions - Total employer pension contributions. | Debit | | Account for the employee contribution in Gross Wages (7000). Statutory Pay reclaimed If your payroll includes SMP, SPP or SAP Reclaimed, to post the following entries: | 7011 | SMP Reclaimed - Total SMP Reclaimed. | | Credit | | 7012 | SPP Reclaimed - Total SPP reclaimed. | | Credit | | 7013 | SAP Reclaimed - Total SAP reclaimed. | | Credit | | 2211 | National Insurance - Total SMP/SPP reclaimed. | Debit | | Employment allowance | 7006 | Employers NI - Reducing the Employers NI with the amount of employment allowance claim. | | Credit | | 2211 | National Insurance - Reducing the National Insurance liability with the amount of employment allowance claim. | Debit | | Apprenticeship levy If your payroll needs to account for the apprenticeship levy: | 7015 | Apprenticeship levy - Increasing an expense code with the apprenticeship levy amount. This is the levy liability value on your P32. | Debit | | | 2217 | Apprenticeship levy - Increasing the apprenticeship levy liability by the amount due. This is the levy liability value on your P32. | | Credit | Childcare vouchers If your payroll includes a salary sacrifice for Childcare vouchers, follow our Record a salary journal for Childcare vouchers article.
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