Your questions pertain to the difference between income statement accounts and balance sheet accounts. The former describe performance. The latter describe position. Learn about accounting at http://www.accountingcoach.com.
These are not issues about Manager, which follows standard accounting practices.
“I only see the nett salary and the UIF Company Contribution as liabilities. What happened to the PAYE and Employee UIF”
Tut,
Thank you for the link.
According to what I take note of is that this is a software problem due to the following: -
One can not anywhere see what is owed to the Receiver of Revenue or the Department of Labour in respect of the Employee deductions. How are one going to know what to pay?
PAYE account must be categorized as a liability account. It is not an expense account. PAYE represents your PAYE liability.
Similarly, UIF - Employee is also liability account but you have it categorized under your Chart of Accounts as expense account.
What I suggest, create UIF liability account. When setting up your payslip items, UIF liability account should be used on UIF deduction item and also on UIF contribution item under Liability account field.
When you do all this, your P&L will contain two expense accounts:
UIF - company (representing your UIF contribution expense)
Wages & salaries (representing gross pay to employees)
Then balance sheet will contain:
Employee clearing account (amount payable to employees)
