Where should Social security be added as it shows as "suspense"

1

Hello,

I have downloaded a trial balance and found the social security form the paypal listed as “suspense”, It is my understanding that this should be a liability and not an expense in the UK, am I correct please?

Thank you

2

What do you mean I have downloaded a trial balance? do you mean a bank statement?

Assuming you are talking about a downloaded bank statement from Paypal, although this is not clear,
What do you mean by social security form(from?) the paypal?
A transaction will be posted to a suspense account until you set up a bank rule to handle it and post it to a proper account.

3

That´s fine, what I meant is that I could not work out where the social security would have to go. But it looks like it needs to go to “Liabilities” and not “expense”. The reason it was showing as “suspense” was because I had not created an account for this.

It is the first time I pay myself using the software so if I am correct, the wage itself will be an expense to my company but the social security a liability based on the UK accounting system.

Thanks

4

The Guides on the Payroll section are quite clear.

If you are trading as a Sole Trader then make sure you read the Guides relating to Set up and use Capital accounts.

Are you an employee and/or director and/or partner and/or sole owner?

5

Thanks Joe,

It is for my wife, she is self employed with a company(limited)

Thanks,

6

If she is earning a salary, then you need to establish a Payslip - guides are quite good on this.