If you use the Nominal Link option to post your salary journals to from Sage 50 Payroll to Sage 50 Accounts, the employment allowance value isn't included.

To reconcile your accounts, you need to create a manual journal to reduce the total national insurance (NI) on your balance sheet nominal code. Let's take a look.

The employment allowance journal

If your total NI for month 1 is £1500, and you're claiming £1000 employment allowance, when you post the nominal link, the total NI due posts as £1500.

To reduce this by the amount of employment allowance, you should post a journal to credit your employer's NI nominal code, and debit the total NI nominal code.

Post the journal to the relevant codes in your accounts. It's up to you which nominal code you use when posting the journal. If you want, you can create a new nominal code to record the employment allowance.

 EXAMPLE: View example >

 TIP: You can also post manual salary journals in Sage Accounts. Use our Record a salary journal guide to do this. 

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