The Nominal Link posts your salary journals to Sage 50 Accounts, however it doesn't include any employment allowance values.

To reconcile your accounts, record a salary journal to reduce the total national insurance (NI) on your balance sheet nominal code. 

The employment allowance journal

Your P32 in Sage 50 Payroll deducts the employment allowance from the total you owe to HMRC. If you don't account for the allowance in Sage 50 Accounts, your accounts won't reconcile.

For example:

• Your Employer's NI for month 1 is £1,500
• You're claiming £1,000 employment allowance in month 1

When you post the nominal link in this instance, the total employer's NI value is £1,500. However, the amount of the Employer's NI due to HMRC is only £500, due to the employment allowance of £1,000.

To reduce this by the £1,000, post a journal to credit your employer's NI nominal code, and debit the total NI nominal code.

Which nominal code do I use?

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. ▼ Click here for an example