Payroll payment

Although it is possible to create a single payment note for a payroll event, what is the best practice?
Is it better to break these into 3 separate payments?

Typically the payment line items you have shown there are all made to different entries despite being shown together on the payslip.

  • Mark Frazer receives his net pay directly

  • PAYG tax withheld goes to the tax authority with all your other employees tax withheld.

  • superannuation is paid to the superannuation fund with all other employees superannuation using that clearing house or superannuation fund

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So best to not group these, and have a separate payment event for each?

and a supplementary question on account assignment, for a payment to ATO, where there are any fees, like late lodgement fees, or similar misc fees?
What would be the appropriate account to use?
I can’t find anything appropriate in the chart of accounts, so may need to create one, but if so, what group should it come under, expenses?

Think about making the payment you have shown. Who are you going to give the money to? You can’t actually make that total payment to anyone entity.

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That is a single payment to one entity for two reasons.

  • Create an expense account as appropriate
  • with the ato payg cleared at BAS time

Thanks, I’ve broken the payments into the 3 entities, as per above and created a new expense ‘ATO - Fees’.
Does this look right for just the ATO part?

edit: misunderstood.

Hi @lubos I’m actually using the payslip module …
just got a bit confused on the part where going to perform payment.
My accountant messed up my accounts, got stuff spraying all over the place, so I’ve created a duplicate (as a sandpit) and and removed most of the historical data, and going step by step to work out the proper sequence, so I can go back and fix the live accounts.

edit: as just one example the accountant put one net salary payment into the journal entries (so there was still a wage liability showing, even though it was paid & the bank reconciled)

Yeah, I realized you are actually using payslips right after posting my comment.

Anyway, what @Patch is saying is correct.

Payment is recorded when payment is actually made.

Could be right. There are circumstances where employee is not paid but the amount payable is used to offset some other loan. I don’t know the context.


Thanks @lubos & @Patch you guys are legends … especially in these extraordinarily tough times.

I suggest you

  • think less about your accounting program and more about running your business.

  • make payment and receive money into your bank account as required to run your businesses

  • then enter these receipts & payments into Manager. Splitting these into multiple line items when more than one thing is being paid for.

  • The transaction coming from a bank statement import or manually entering the same thing

To address this I would

  • create the chart of accounts you want

  • enter the payslip as per your employee records (manually or batch create or delete other things from a test business file)

  • import bank statements and create bank rules to process them as appropriate

  • offset / barter transactions can be entered as journal entries. In practice if most other similar transactions are entered as payment / receipts I use zero value receipts/payment to do the same thing & keep like transactions together

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Finally everything is cleaned up … and reconciles correctly
The ATO invoices had a mix of GST, PAYG, SGC and other sundry charges, and none of these were entered in a way that they had matching account codes to clear the liabilities, etc. what a mess, took all of a 14 hour day.

Thanks again.

I agree those transactions are more complicated than most. Particularly as they are relatively infrequent. However now you have done it once, later entries should be more straight forward

I just realised that there was a Simpler BAS in the localisation set for Aus.
When I installed it I noticed it added a new Tax Payable in Liabilities and has split values (the new one is a higher positive & the old is now a negative)
I’m assuming during installation the new Chart Account Item was created and a lot of instances of tax were moved from the old to the new, but not all.

Can you shed some light on this please.

as a secondary issue the new values do not seem to add/subtract to give the previous value.



Edit … and I just tried to change the 7 entries which were still using the pre-existing ‘20000 Tax Payable’ account code, to the new ‘Tax Payable’ account code, and now they are in the suspense account.

  • Go to Settings → Taxcode → each of your tax codes
  • Check the account is set to your GST payable account

For transactions which used tax codes in the “Business Activity Statement - Full” but not in “Business Activity Statement - Simpler”, You will also need to change the tax code to the simpler only codes. For example Find and recode “GST 10% (CAPEX)” → “GST 10%”. After which the tax codes not supported by “Business Activity Statement - Simpler” can be deleted.

Thanks Patch, didn’t expect it to reset the tax codes there, I found both GST 10% & GAS 10%(CAPEX) to both be blank and defaulted to the generic Tax Payable, changed to the ‘20000 Tax Payable’ account code and it corrected it.

I didn’t follow the second part you mentioned about the difference of Full and Simpler, I think
I may need this topic expanded in a bit more layman’s terms for non-financial managers

  • Create a new test business

  • Import “Business Activity Statement - Simpler”

  • Go to Settings → Tax Codes.

  • The Tax codes processed by “Business Activity Statement - Simpler” are shown.

  • If your business uses any other tax codes the BAS generated by “Business Activity Statement - Simpler” will be wrong for those periods

To find out if your business is using tax codes not supported by “Business Activity Statement - Simpler”

  • Open your business file

  • Go to Settings → Tax codes

  • The number of times each tax code is used is shown to the right of your screen shot (not published above due to cropping)

  • Un-used Tax codes from “Business Activity Statement - Full” but not defined in “Business Activity Statement - Simpler” can just be deleted.

  • Transactions which use Tax codes from “Business Activity Statement - Full” but not defined in “Business Activity Statement - Simpler” will need to be recoded before Manager will allow you to delete these tax codes

This maybe easier to do in the future

So does this mean we need to go through history and change out all the tax codes which don’t match?


e.g. this PI which was OK before the installing of BAS Simpler is showing the GST on Imports as outstanding.

Should I just change this to GST 10% ?