Processing Wages/Salaries in Navigator

Modified on Thu, 26 Sep at 9:44 AM

The recommended approach to process wages and salary costs in Navigator is through a Nominal Journal.

Payroll Summary

Before creating the journal, payroll data is typically summarised in a report that includes the following details:

Gross Wages
Tax
ERS/EES National Insurance
Pension
Net Wages

This information forms the basis for preparing the journal entries.

Preset Nominal Codes for Payroll Costs

The level of analysis required in the Management Accounts will determine which nominal codes to use in the journal. Below is a list of the Preset Nominal Codes associated with payroll costs:

Profit & Loss Codes

Code	Description	Types
20	Labour	30
26	Valet	30
150	Technicians’ Salaries	30
151	Productive Bonus	30
152	Non-Productive Labour	30
153	Overtime	30
158	Productive Training	40
200	Salesmen’s Salarie	40
201	Salesmen’s Commission	40
202	Introductory Commission	40
299	Nest Pension	40
300	Managers’ Salaries	40
301	Clerical Salaries	40
302	Counter Staff	40
303	Counter Staff Commission	40
304	Service Receptionist	40
305	Other Salaries	40
306	National Insurance	40
307	Medical/Life Assurance	40
308	Company Pension	40
309	Sick Pay	40
310	Holiday Pay	40

Balance Sheet Control Codes

Code	Description	Type
799	Nest/Pension Control Account	70
800	N.I. & PAYE	70
809	Salary/Wages Control	70
810	CSA Control Account	70
811	Attachment of Earnings Control Account	70

Method of Processing

In the Cashbook:

Post the payments:
- a) Staff Net Wages to Wages Control (0.0.70.809)
- b) HMRC Paye/NI to NI/Paye Control (0.0.70.800)
- c) Nest/Pensions to Pension Control (0.0.70.799)

Post by Journal:

Credit:
- PAYE/NI Control Account (0.0.70.800): Tax, Employers NI, Employees NI
- Salary/Wages Control (0.0.70.809): Net Pay
- Pension Control (0.0.70.799): Employer Pension, Employee Pension
Debit:
- Cost Centre Nominal Code (see list above): Total Gross
- National Insurance ERS: Employers NI
- Company Pension ERS: Employers Pension

Recommendation

It is recommended that a Wages Journal Template is used to simplify the import of payroll data into the system. A download of this can be found here