What's posted to Accounting when integrated with Payroll

Solution Properties

Solution ID:

250402132717867

Last Modified Date:

Tue Feb 24 09:25:11 UTC 2026

Taxonomy Path:

Case category//How do I...//an integration

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What's posted to Accounting when integrated with Payroll

Description

When you enable Sage Payroll and Accounting integration, you can create three different journals.

If you want more information on how these processes work, read Integrate Payroll with Accounting.

▼Salary details

When you complete your pay run in Payroll, we created the following journal in Accounting.

Code	Ledger Account	Description	Debit	Credit
Bank account specified in the		Total value of your net wages.		Credit
2210	PAYE to pay to HMRC	The total tax deducted. If you’re due a tax refund, the system records it as a debit and includes it in the credit for net wages.		Credit
2220	NIC to pay to HMRC	The total of employee and employer NI contributions. If you’re due an NI refund, the value posts as a debit and included in the credit for net wages.		Credit
2230	Student Loan	The total value of student loan deductions made.		Credit
2240	Attachments	The total value of attachments deducted from employees’ net pay.		Credit
2250	Net Wages	The total values of the employees take home pay.		Credit
2250	Net Wages	When you create the bank payment, this debits the Net Wages ledger account for the same value as the credit. This is to show that you've paid your wages.	Debit
2260	Pension	The total employee and employer pension contributions. If you use more than one pension scheme, separate entries show for each scheme.		Credit
7000	Employee Wages and Salaries	Total gross wages for all employees, not including statutory payments.
7010	Statutory Neonatal Care Pay	Total Statutory Neonatal Care Pay paid.	Debit
7015	Statutory Bereavement Pay	Total Statutory Bereavement Pay paid.	Debit
7020	Employers NI	The total employer NI contributions.	Debit
7030	Employer Pensions	Total employer pension contributions.	Debit
7050	Other Deductions	Total of any remaining employee deductions, excluding attachments and student loans.		Credit
7060	Statutory Sick Pay	Total SSP paid.	Debit
7070	Statutory Maternity Pay	Total Statutory Maternity Pay paid.	Debit
7080	Statutory Paternity Pay	Total SPP paid.	Debit
7090	Statutory Adoption Pay	Total Statutory Adoption Pay paid.	Debit

▼HMRC payment details

If you've chosen to record the bank payment, we'll also record the details of the payment you need to make to HMRC. This happens when you choose Record Payment / EPS from the Summary page in Payroll.

If you’re due a refund from HMRC in the period, you can choose to either take the refund or postpone it. Select:

P32 Adjustment. To move the credit to the next P32 period to offset the liability. This option isn't available if you are in the 12th month or the fourth quarter of a tax year. Or
Refund. Enter your bank details and submit the request to HMRC. Your bank details will update with HMRC, so be sure they're correct before submitting your request

Ledger account code	Ledger account	Description	Debit	Credit
Bank Account		Total owed to HMRC and will agree to the value on your P32. If you’re due a refund from HMRC, this posts as a debit.		Credit
2210	PAYE to pay to HMRC	Total Income tax.	Debit
2220	NIC to pay to HMRC	If you’re entitled to employment allowance or have statutory payments to recover, this offsets against the value and reduces your liability to HMRC.	Debit
7010	Statutory Neonatal Care Pay	The total SNCP reclaimed.		Credit
7015	Statutory Bereavement Pay	The total SBP reclaimed		Credit
7020	Employers NI	The amount of employment allowance you can reclaim, if applicable. If you’re entitled to claim employment allowance, this offsets against your employer’s NI contribution account as a credit.		Credit
7070	Statutory Maternity Pay	The total SMP reclaimed.		Credit
7080	Statutory Paternity Pay	The total SPP reclaimed.		Credit
7090	Statutory Adoption Pay	The total SAP reclaimed.		Credit

▼Pension payment details

To help you keep track of your pension payments, you can record the payment made to your pension provider. When you complete your pay run, we'll enter the following transactions to clear your liabilities.

Ledger account	Description	Debit	Credit
2260 - Pension	Total amount paid to the pension provider.	Debit
Bank account	Total paid to the pension provider.		Credit

Read how to view payroll journals in Accounting.