DESKTOP EDITION CLOUD EDITION SERVER EDITION GUIDES FORUM

Salaries Paid Daily by Cash


#1

We have employees who have fixed salaries per month, but these are paid part by part within the month by cash.

For example, if an employee’s monthly salary is $1000, we pay them once every 2 days (amounts may vary). So if till the 29th of the month we have paid him around $800, we need to pay the balance $200 on 30th/31st of the month as his salary balance.

Could someone guide me on what would be the correct way record these part salary payments in Manager. Also, show me how the balance salary payment at the month end would be done.

Note: Also, as all our daily transactions are cash based. At the end of the day, we do a final count of the cash in hand. So these daily salaries should be reduced from our Cash account too.

Any help would be really appreciated.


#3

See: http://guides.manager.io/businesses/employees/paying-employees


#4

@lubos I followed the steps mentioned in the above link.

Now, my Employee Clearing Account has a Negative balance, is this correct? My P&L statement does not show these entries that i have made. I know this is a Liability account, but shouldn’t my profit be shown after Salaries & Wages are deducted. Do i need to pass another entry at the month end to knock off this amount against another account.
How do i keep a track as to how much I have paid an employee as of today?

Now, Let me explain what method I had used, kindly verify if this method is correct.
I created separate “Employee Salary” accounts under Expenses (For Example: “Salary (John)”). I used this method as I have just 8 employees, so its easy for me to keep track. Now, as i pay them daily/weekly, i “spend money” from my cash account and I account it under respective salary accounts.
This shows in the daily cash summary, as well as my P&L Statement.
So is the above method correct?

Does Manager have an option, where I can pre-determine my employees salaries and I pay off these daily/weekly salaries while reducing from their monthly salary. And, at the month end I pass off the balance salary to respective employee in one entry? So this way i can make sure i do not over/under pay any of my employees.


#5

You still need to create payslips under Payslips tab. Payslip will debit your employee salary expense account and credit employee clearing account. So if employee has received what they have earned according to payslip, employee clearing account should come to zero.


#6

Thanks a lot. Now i get it how the Payslips tab works.