Setup

Set-up your Accounts

1. Navigate to Main Menu > Setup > Settings & Defaults > Accounting > Accounts.
2. Add an Account called Payroll, and make it the Group Account for the Payroll Accounts by dragging and dropping the Sub-accounts to the Group Account, as shown in the image below - so that the total Payroll is available on your Income Statement.
   • Be sure to set the Category of all sub-accounts to the same as the Group Account.
3. Add a Payroll Control account and link it to Current Liabilities so it doesn't appear on the Income Statement. Make sure the Category is correct too: If you have PAYE outstanding at month-end, that's a liability.

Set-up your Entry Types

Navigate to Main Menu > Setup > Settings & Defaults > Accounting > Entry Types > Add. You will need two Entry Types.

1. Payroll - Bank - This Entry Type records the payments from your bank and debits the 'Payroll Control' account from where it is disbursed to the various components that make up the payroll. See image below:

2. Payroll - Expenses - This Entry type moves the money from the 'Payroll Control' account to the various Expense accounts, which is why the Debit Account is blank - in order for you to select the Expense. See image below:

Transacting

Every week / month when a payroll is run, the following transactions need to be done:

Pay Day

1. Record the bank transaction/s for payments made to staff - in this example R10,000 (this could come from the bank import) by navigating to Main Menu > Accounting > Ledger > Entry Type: Payroll Expense > New > New Blank.

2. Load all the Payroll components like UIF, PAYE, MedAid, etc, like the image below.

PAYE Due

PAYE Due is normally the 6th day of the following month.

1. Record the PAYE payment - this would include all the statutory expenses (this could also come from the bank import).
2. Continue on for all the payments made to Med Aid, Pension Fund, Unions, etc.

Making Payroll Payments

1. Navigate to Main Menu > Accounting > Ledger.
2. Set the Entry Type Filter to Payroll Payment.
3. Click New Blank and capture the details accordingly.

Reconciling the Payroll

This is a very simple process and gives you a 'one journal' view of these records.

• Simply select Filter=General Ledger Account and Account = Payroll Control. If necessary, you can also filter on the Description.