Frequently Asked Questions

Can I record the wages and salaries that I pay to employees?
Last Updated 7 years ago

In Bookkeeping Pro there is an employees module that you can use to record the wages and salaries paid to employees.
At a minimum you need to set up each of the employees that you make payments to.
If you wish to have the payroll taxes automatically calculated then you will need to configure income tax bands and assign these to each employee. This is not mandatory however and you are able to manually enter the amount of taxes withheld when entering a salary payment into Bookkeeping.
As payroll taxes are a complex area and vary significantly between different businesses and countries the income tax bands function may not be suitable for you situation. If this is the case then you will need to enter the taxes amount manually when recording a salary payment.
The income tax bands facility will calculate stepped or flat taxes. Stepped taxes are where you pay a certain tax rate for the first portion of your annual salary, and then a different rate of tax for the next portion of your annual salary. Flat taxes are where you pay a certain tax rate on your entire salary if it is below a certain amount, and a different tax rate on your entire salary if it is above a certain amount.
You use the Salary Payment screen to record that a salary or wage payment was made to an employee. This screen will take all of the defaults from the employee record and apply them on the salary payment screen. If you have set up income tax bands then the income tax will be calculated for you. If you have assigned monetary entitlements to the employee record then these will be calculated as well.

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