Use the Wages rule to determine the payment profile of your employee wages and the calculation of and payment profile of your payroll deductions. To set up the wage rule:
From the Customise Data tab click the Profit and Loss tab.
If you have Direct Wages within Cost of Sales, then click the EXP.COS.WAG Default Rule from the Cost of Sales header, or beside the Direct Wages account you’d like the rule to apply to.
Click the EXP.WAG Default Rule button from the Expenses header, or beside the wages account you’d like the rule to apply to.
This option is recommended if the organisation uses a payroll intermediary and the wages and payroll deductions are paid at the same time. You can edit the accounts the rule is applied to and the payment profile by following these steps:
Select an account to apply your rule to from the Select Accounts dropdown menu (this is selected by default but can be changed).
Click the ‘My wages and taxes are paid together’ radio button.
Select a liability account, for example, Wages Payable. Note: This selection is only required if your payment profile is not 100% Current.
Timing of payment profile: If your wages and payroll deductions are paid at the same time then the payment profile should be 100% Current. Otherwise enter the payment profile that best reflects when the payments will be made.
Calculate wages and tax payments based on gross wages
Use this option if you would like the rule to calculate the payroll deductions % to apply to all months (not actual months), the payment profile of the net wages and payroll deductions, and the calculation and payment profile of additional payroll taxes, in your Forecasts. Follow these steps:
Select an account to apply your rule to from the Select Accounts dropdown menu (this is selected by default but can be changed).
Click the ‘Calculate my wages and tax payments based on gross wages’ radio button.
Enter gross and net payroll amounts for your last payroll period and check that the deductions % is materially accurate.
Click Next.
Under the Gross Wages heading, enter information into these fields:
Net Wages Liability Account: Select a liability account, for example, Wages Payable - Payroll.
Net Wages payment profile: Enter the timing of payments that best reflects the account you have selected, for example, 100% ‘Current’.
Deductions Liability Account: Select a liability account, for example, PAYE or PAYG Payable. Click ‘+ Add’ to add further deductions and fill in the required fields.
Under the Additional Payroll Taxes (Superannuation) heading click ‘+ Add’ to add additional payroll taxes and fill in the required fields. Note: Click the Delete icon to delete any deductions or additional payroll taxes you no longer want.
Manually enter payroll deductions and a payment schedule
Note: This option is only available in the older version of this rule (pre May 2017). This is because you can now set up a specific schedule for the payment of your payroll and employer taxes.
Manually enter payroll deductions and your payment schedule, by following these steps:
Select an account to apply your rule to from the Select Accounts dropdown menu (this is selected by default but can be changed).
Click the ‘I will enter payroll deductions and a payment schedule’ radio button.
Click Next.
Under the Gross Wages heading, enter information into these fields:
Net Wages Liability Account: Select a liability account, for example, Wages Payable - Payroll.
Net Wages Payment profile: Enter the timing of payments that best reflects the account you have selected, for example, 100% ‘Current’.
Deductions Liability Account: Select a liability account, for example, PAYE or PAYG Payable.
Deductions payment profile: Enter the timing of payments that best reflects the account you have selected, for example, 100% ‘+30 Days’. Click ‘+ Add’ to add further deductions and fill in the required fields.
Under the Additional Payroll Taxes heading click ‘+ Add’ to add additional payroll taxes and fill in the required fields. Note: Click the Delete icon to delete any deductions or additional payroll taxes you no longer want.
Click Next.
The Gross Wages column will be populated based on the numbers in the data grid in the Profit and Loss.
Enter the payroll deductions and additional payroll taxes into the columns that were created in the previous screen.
