Hi I am new to processing the payroll in MYOB essentials.
Does the journal that you process when finalising a payrun automatcically go to your bank or is there a wages payable account?
I am assuming the bank rec will be out ?
We pay a standrard amount to the owners (related party) however because of the sales not being regular they take money when they can.
It would be easier to apply it against a wages payable account.
Hi KrystalClayton1,
Thanks for your post, and welcome to the Community Forum! When finalizing a pay run in MYOB Essentials, the journal entry does not automatically go to your bank. Instead, it typically gets recorded in a wages payable account. This account represents the amount owed to employees until the actual payment is made.
Regarding your assumption about the bank reconciliation being affected, that's correct. The wages payable account would show as an outstanding liability in your accounting records until the payments are made, affecting your bank reconciliation accordingly. You can also visit this help page for more information: Managing linked accounts/payroll linked account. Regarding your last question, I recommend reaching out to your accountant for an accurate solution regarding this issue. However, to give you an idea, applying payments to the owners against a wages payable account, especially when they're paid sporadically, is a sensible approach. This method allows you to separate these payments from regular employee wages, making it easier to track and accurately reflect in your financial statements.
Feel free to post again, we're happy to help!
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Regards,
Earl
