Payslip deductions are showing as "Payroll liabilities"

21

I wouldn’t put staff advance or loan repayments on payslip at all.

When staff gets paid in advance, the amount can be allocated to Employee clearing account. The account will be in debit until payslip is issued.

In future, Manager will be able to automatically detect these transactions and will show them on payslip automatically.

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22

This is ok for a single repayment, but if it’s repayable over a period of time then the payslip should be transparent as to the movements between Gross and Nett values

Also, why can’t 3rd parties (tax, super) be segregated to there own accounts for better management purposes rather then being dumped into the one account, especially with Super where each Employee can nominate different funds.

Would the new feature Special Accounts be applicable here - haven’t dabbled with them yet

23

Well, when you create payslip deduction item, you can specify liability account. But if there are many funds, then balance sheet will get quite long.

This is exactly what special accounts can fix as you will be able to have custom subsidiary ledger for all payslip liabilities. But right now it’s not possible to select special account when creating payslip deduction item. It will be supported within a few weeks.

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On a separate matter, currently for Payslip Deductions Items when you select the Account - Custom Control Accounts are also displayed - perhaps for payslip purposes they could be linked with Manager Control Accounts which by default are prevented from being displayed - e.g. AR, AP, Inventory on Hand, Expense Claims. If one happens to select a Custom Control account then the transaction ends up in Equity - Suspense

25

Thanks. The issue is fixed in the latest version.

26

Sorry to revisit this topic again. @lubos, does this mean for 3rd party deductions that the staff owe, we should create a payslip earning account and create a negative transaction to record a utility payment deduction done by the company on behalf of the staff?

I have tried to create a payslip deduction for the same, however, a negative amount appears on my liability side of the B/S. Hence, have retorted to the above. Is there any accounting breaches?

Current version used is 16.12.0.

Thanks.

27

Ok, to clarify there are a) 3rd party deductions that the staff owe to 3rd parties (tax) and there are b) 3rd party deductions owed to the company as reimbursement for the company paying that 3rd party on behalf of the staff (utilities).

For (b)

  1. The company would allocate the 3rd Party charge (payable by the staff) to a BS Liability account called “Staff Recoverable Payments”
  2. A Payslip Deduction Item would be created called “Recoverable Payments” and would have that BS Liability account “Staff Recoverable Payments” as the allocation.

So when the company takes up the 3rd Party charge this would create a Debit into that account.
When the Payslip Deduction Item is processed this would create a Credit into that account, thereby cancelling out the Debit.

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A post was merged into an existing topic: Payslip deduction item?