Payroll Net Pay Account Trace

Question

Hello,&nbsp;I have a client who does payroll in MYOB Essentials.The gross pay is registered in the Wages expense account.Hardly any of the Net pay is in the Electronic/Payroll Clearing Account.&nbsp;The Net pay is paid out from the bank and dropped in the Bank Transactions section to code in.As of now, I have parked them in a temporary account. However, I would like to trace that if the payroll is passed through the Payroll option - the Net pay should hit a liability account which in this case is not happening.Can you please guide how to check or reset the accounts if possible so the Net pays paid from the bank is coded correctly? The Gross Wages, super, and PAYGW accounts are running correctly. The issue is the Net pay.&nbsp;Thanks

princess_r · Answer

Hi AN45,
&nbsp;
Figuring out which account to link for employees' net pay can be a bit tricky and might need some specific financial advice. It's best to check with your accountant for personalised guidance on managing your payroll account. But here's a quick tip: make sure your managed linked accounts have the default wages expense category and the default tax/deductions payable category set up correctly. If you've set the employee payment method to electronic and the bank account for electronic payments is set to the 'Electronic Clearing Account', that might be why the net pay is showing up there.
&nbsp;
Cheers,
Princess

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Payroll Net Pay Account Trace

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