Payroll (document)

To start accounting for payroll, maintain the respective Accounting settings:

  • Expense account
  • Liability – the account to be used for entering liabilities to employees
  • Personal tax – the account to be used for entering liabilities to tax authorities

Payroll is the document, where you can:

  • record wages and salaries
  • record additional earnings (such as bonuses)
  • withhold deductions or taxes payable by the employee (such as income tax)
  • accrual for presonal-related company taxes
  • generate payroll payment.

Create Payroll document #

Before creating a payroll document, create Earnings and Deduction types!

  1. Navigate to Payroll – Documents – Payroll
  2. Click Create
  3. Choose the Department (optional) and time period. Time period can be custom, e.g. two weeks or a week. Built-in check will not allow to account for the same Employee and the same time period twice.
  4. Number of work days will be calculated automatically based on the Working calendar (adjust the Calendar if needed)
  5. Click Fill to fill in the list of Employees, hired before the date of the document
  6. Adjsut the number of days actually worked to record for Base salary

Accounting #

Wages and salaries within Payroll document create the following transactions in the General Journal:

Record Additional earnings #

  1. In the column Additional earning choose the respective Earning type
  2. If earning type is calculated based on days actually worked, the amount will be calculated automatically
  3. If earning type has manual input, fill in the amount

Accounting #

Additional earnings within Payroll document create the following transactions in the General Journal:

Record Company taxes #

  1. In the column Company taxes choose the respective Deduction type
  2. If the deduction type is calculated based on precentage, the amount will be calculated automatically
  3. If deduction type has manual input, fill in the amount

Accounting #

Company taxes within Payroll document create the following transactions in the General Journal:

Record Deductions #

  1. In the column Deductions choose the respective Deduction type
  2. If the deduction type is calculated based on precentage, the amount will be calculated automatically
  3. If deduction type has manual input, fill in the amount

Accounting #

Dedutions within Payroll document create the following transactions in the General Journal:

Record Personal income tax #

  1. In the column Personal income tax, the tax will be calculated automatically;

Accounting #

Personal income tax within Payroll document create the following transactions in the General Journal:

  • Debits: Payroll liability (default account set in Accounting settings)
  • Credits: Personal income tax liability

Please refer to a separate article on how to create a payroll payment.

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