Summary
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.
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 |
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. | 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 |
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.
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