If you have employees and are running a payroll, you will need to enter their pay details into Farmplan Business Cloud.
To accurately represent the wages owed to employees, and tax and National Insurance (NI) owed to HMRC, they need to be entered first so that the accounts show the amounts owed even if they have not yet been paid.
For example, let's say you owe £1,000 to HMRC for April's tax and NI but did not actually pay it until May. To be accurate your accounts should show how much is owed to HMRC at the end of April. If you only process the payment from the bank in May this liability will be missing from April's reporting.
You will notice the following categories in Farmplan Business Cloud:
These categories can be updated on each pay date, (whether it be weekly, bi-weekly or monthly) through adjustments, sometimes called journals, and getting them correct can require knowledge of bookkeeping principles.
To make this simpler we have included 'wages adjustments' in Farmplan Business Cloud which completes these adjustments for you providing the payroll is relatively straightforward.
How to enter Wages Adjustments
Go + > New Wages Adjustment
This will load a simple form (as below) which you can enter the pay information into:
Date: This is the pay date of the payroll (last date of the month etc.).
Description: Usually the week/month the wages adjustment relates to
Net wages: This is the total actually due to be paid to employees (i.e. after tax and NI has been deducted from them).
*Tax: This is the total tax deducted from all employees for the pay period.
*Employee's NI: Total employee's NI deducted from all employees for the pay period.
*Employer's NI: The employer's NI which is due from your business for the pay period.
^Employee’s pension: Total employee's NI deducted from all employees for the pay period.
^Employer’s pension: Total employer's NI due from your business for the pay period.
* - due to HMRC.
^ - due to the pension provider
You will be able to find these figures from a report in your payroll software.
Once saved, you will notice the balances of your categories update. The following expenses are now included in Farmplan Business Cloud (even though you may not pay employees until later).
You'll also be able to see the amounts owed. When completing your banking in Farmplan Business Cloud you should use these categories for the payments to HMRC and your employees.
Please note, if your payroll is a little more complex, i.e. if you have other deductions to include, then the wages adjustment form will not be suitable. Instead, use the regular Adjustments option in Farmplan Business Cloud.