How to pay wages using cash

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How to pay wages using cash

Hello,

I'm trying to work out how to pay my employees with cash.

As a tourism business we recieve some cash payments. We live remotely and therefore depositing the funds into a bank account isn't so easy. Once we've rasied invoices and allocated reciept of the payment to petty cash, how do I then withdraw it from petty cash to pay wages?

I understand I should use the 'spend money' feature, but what do I 'allocate to'? I need to ensure it can all be balanced with the pay run.

I have the wages payment split on the payslips, half paid into a bank account and the other half paid in cash. 

Just hoping someone can guide me in the right direction

Thanks

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Re: How to pay wages using cash

Hi @Francesj 

I would create another bank account in Essentials called "Cash" or "Petty Cash". Then you can receive the deposits into this account as income, and pay wages out of it. It can also be reconciled with the balance you actually have sitting in the time (or whereever you keep the cash)

Regards,
Jennie Kingma
JK Business Systems Ltd, Hamilton, NZ
Email: jennie@jkbusiness.co.nz
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Re: How to pay wages using cash

Hi  jenniek,

Thanks for your help. I have a banking account called petty cash, but when I go to 'spend money' from that account I need to 'allocate to'. Do you know what I should be allocating the spend to, so that I can reconcile it against my pay-roll?
Thanks! 

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Re: How to pay wages using cash

Hi @Francesj 

 

In Payroll>>Payroll Settings you would need to change the Banking Account to the acccount you are paying the wages from.  This will create the withdrawal transaction in that account for you to reconcile.

 

Please let me know if you need further help.

Cheers,
Tracey
Previously @bungy15

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Re: How to pay wages using cash

Thanks @Tracey_H 

I've had a look and it would seem you can only choose one bank account. I'm starting to think what I'm proposing isn't possible.

I wanted to split the pay half EFT and then half cash. 

So I'd need to be able to select our NAB account for the EFT payment and then petty cash for the cash payment.

I really appreciate everyone helping me try work this out Smiley Happy

On the payslip I seem to be able to show the pay has been paid in two different ways

 

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Re: How to pay wages using cash

Hi @Francesj 

 

You could look at creating and using a Payroll Clearing account. This would be the Bank Account for paying wages in Payroll Settings. You would then need to record Transfer Funds transactions from the clearing account to the applicable bank accounts.

 

For example:

Payrun processed with the Bank account for paying wages as the Payroll Clearing account.

Go to Transfer Funds

Enter the amount paid from the bank account

Transfer from: bank account

Transfer to: payroll clearing account

Save

 

Record a second Transfer Funds transaction

Enter the amount paid from the cash account

Transfer from: cash account

Transfer to: payroll clearing account

Save

 

Please let me know if you need further help.

 

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

Cheers,
Tracey
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