Wages

Question 1

Total wages cost for an employer

Answer 1

Total wages cost for an employer

.Gross pay plus employer’s NIC and any employers
pension contributions.

Question 2

Wages EXPENSE account

Answer 2

Wages EXPENSE account

DEBIT
.Gross wages = expense in this account
.Employers NI = expense in this account
.Employers pension = expense in this account

CREDIT
.Transfer to SPL = liability in this account

Question 3

Wages CONTROL account

Answer 3

Wages CONTROL account

DEBIT
.Net pay (bank a/c)
.Employees NI
.PAYE (income tax)
.Membership fees
.Pension - ees

CREDIT
.Gross wages = liability in this account
.Employers NI = liability in this account
.Employers pension = liability in this account