Below is an example of how to categorise a payroll transaction, where National Insurance contributions, and other taxes have been deducted at the source:
Example:
- Payroll transaction in Bank Account: £1234.00
- PAYE contribution: £15.00
- National Insurance contributions: £234.00
- Locate the Payroll transaction from your bank transactions page
- Click 'Edit' to open up the details
- Enter the Employee's name
- Enter the Category e.g. Employee Salary or Wage
- Enter the VAT% [Exempt] if you are VAT registered
- Select 'Split Supplier' to add other taxes/contributions
- Click 'Split category/VAT' to include the 'National Insurance' and again to account for each part of the contributions
- Deduct the amount 'still to review' from the gross value of the transaction
- Click 'Done' to confirm the changes
- Click 'Confirm' to save
NB. You may create a new category and name it 'National Insurance' for example, by clicking on 'ENTER CATEGORY' and selecting 'Customise Categories' from the bottom of the dropdown list of categories, under the parent category 'Taxes':