Payroll Help

Hey Cleggtribe,

There’s definitely a way to smooth things over without having to reverse the pay runs every time. You’re on the right track thinking about payroll clearing, so here’s how you can tidy up your reconciliation using a payroll clearing account:

• If you don’t already have a payroll clearing account, jump into Accounting > Chart of accounts > Create account, and set up a detail account for this.
• In Bank transactions, allocate each of the wage payment transactions (even if they’re split up) to your new clearing account.
• Run your General ledger report (Reporting > Reports) to double-check: your bank account will show the credits for these payments, and the payroll clearing account will have matching debits.
• Pop over to the Accounting menu and whip up a general journal to transfer the total pay amount from your bank account to the clearing account.
• Check your General ledger report again. Those journal entries should now have balanced things out, so your clearing account sits nicely at zero.
• When you do your next bank reconciliation, just tick off the spend money payments, the original pay run, and the journal. All should line up perfectly.

If you unsure about using electronic and payroll clearing liability accounts, always a good idea to have a quick chat with your accountant, just to keep everything ship-shape.

Cheers,

Doreen

Thanks Doreen.

I have change the linked payroll categories to:

Cash payment: 25000 payroll clearing account (new one)

Cheque is the bank account

I have hanged the employees payment method to cash

The payment method use to be all cheque for all payroll.  

I will do a test run and make sure it works. 

I assume there is no way to change the payment method of wages that have been processed beside a reversal. 

With the wages I am having problem with (dated April 25), the correct amount is on my bank rec but on my bank feed to have to allocate the split payments somewhere.  I have popped them into payroll clearing for the minute but I really need to delete them, as i can't hide them like in Account right. What can I do?

Can you have 2 separate bank accounts in the payment method eg:

Cash - bank account 123

Cheque - bank account 456

Thanks for your help in advance.

Jackie

Hi Doreen

Did you get my reply?

Jackie

Hi Cleggtribe,

Yes, you’d have to reverse the original pay and update the payment method before re-processing,there isn’t really a shortcut around that. Also, if your payment method isn’t set to “electronic,” it’s not possible to enter two different bank accounts on the employee card file. 

If you’re dealing with split bank feed transactions, the simplest way to fix it is to assign the separate wage payment to a payroll clearing account. That way, you can tidy up your reconciliation without having to redo payroll. Honestly, the advice Doreen_P gave in the first reply is probably your best bet for handling this and it’s what most users end up doing in the same situation. 

Cheers,

Princess

Thank you for your help I will get it sorted.

Quick question, if I have done the STP finalisation and I need to reverse pays shall i undo finalisation.

Jackie

Hi Cleggtribe,

Yes, you’ll need to undo your finalisation before you can reverse a finalised pay. Here’s where you’ll find everything you need to know about making changes after finalising a pay.

Cheers,

Princess