Double Entry for Payroll

Double Entry for Payroll

The payroll journal can be a tricky one to get right, but it is critical to reporting the liabilities and profits of a business correctly.

The double entry for payroll liabilities are:

Dr Gross Wages (profit & loss account)

Dr Employers NI (profit & loss account)

Cr PAYE & NI Control (balance sheet)

Cr Net wages control (balance sheet)

The double entry for payments of net pay and PAYE liabilities are:


Dr Net wages

Cr Bank

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