Below is an example of how to categorise a payroll transaction, where National Insurance contributions, and other taxes have been deducted at the source:
Example:
- Payroll transaction in Bank Account: £1234.00
- Employee Savings Plan: £25
- PAYE contribution: £15.00
- National Insurance contributions: £234.00
- Locate the Payroll transaction from your bank transactions page
- Click 'Split/Attach' to open up the expanded view
- Enter the Employee's name
- Enter the Category e.g. Employee Salary or Wage
- Enter the VAT% [Exempt] if you are VAT registered
- Press 'Split category/VAT' to split the transaction
- Select 'Split Supplier' to add other taxes/contributions
- Click 'Split Category/VAT' again to include the 'National Insurance' and to account for each part of the contributions
- Deduct the amount 'still to review' from the gross transaction value
- Click 'Done' to confirm the changes
- Click 'Confirm'
NB. You may create a new category and name it 'National Insurance' for example, by clicking on 'ENTER CATEGORY' and selecting 'Customise Categories' from the bottom of the dropdown list of categories, under the parent category 'Taxes':
