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Using TurboCASH

 







SALARIES AND WAGES
PAYSHEETS AND PAYROLL REPORTS
  
At the end of each pay period (end of the month for salaries, end of the week for weekly wages, and at the end of a fortnight for fortnightly wages, a paysheet should be handed to each employee. A paysheet should contain at least the basic information regarding the employees earnings (basic salary or wage and any allowances, if any) the gross pay, the deductions from his / her salary, and the net amount payable or paid to the employee. Additional information may also be reflected on a paysheet, such as the Year to Date figures, Employers contributions, Accumulated leave, etc. Paysheets may be in different sizes, colours, etc. depending on the businesses systems and stationery they are using. An example of paysheets for salaried staff is as follows:

Name of the business. Source document name. Name of the employee. Employee or Personnel number. Pay period. The details and the total of the gross remuneration (salaries / wages and any other allowances) paid to the employee. The details and the total of the deductions withheld from the gross earnings. Net Salary / Wages, which may be paid in cash, by cheque or bank transfer. Name of the business. Source document name. Name of the employee. Employee or Personnel number. Pay period. The details and the total of the gross remuneration (salaries / wages and any other allowances) paid to the employee. The details and the total of the deductions withheld from the gross earnings. Net Salary / Wages, which may be paid in cash, by cheque or bank transfer.

The paysheets are usually summarised into a payroll report or summarised paysheet. It does not matter which system you are using, the payroll report should reflect the following basic information. The following is an example of a summary of paysheets done in the Lotus 123 Spreadsheet.

Columns - for each of the basic salary / wages, allowances, deductions and totals. Name of business, pay type (Salaries or Wages) and the Pay period. Rows - listing the employees and Employer's Contributions. Employee / Personnel details - number and name. Basic monthly salary or weekly, fortnightly wages and any allowances. Tax deductions as calculated on the Tax tables for each employee. Total net pay for each employee, which is taken home. Column totals for all the employees on this pay group. Column totals for all the employees on this pay group. This total should be equal to the net pay all the employees are taking home. Details and amounts for the Employer's Contributions. Total Deductions and Employer's Contributions. Total of the Employers Contributions and Levies (e.g. Skills Development Levy). Total of the basic salary and allowances for each employee. Unemployment Insurance Fund contributions currently calculatred at 1% of earnings.                                              For UK users, NIC National Insurance Contributions. Pension or Provident Fund calculated according to a percentage of earnings, formulae etc. Earnings - Salaries / Wages - you may add or insert columns for any other allowances or remuneration payable. Medical Aid Fund calculated according to a percentage of earnings, formulae etc. Total of all the deductions for each employee. Deductions - you may add or insert columns for any other deductions as necessary. Total Net Pay and Employer's Contributions.

 

The details for each employee are listed in a row on the spreadsheet. The last row (after all the employees details are entered, is totalled. And finally the employer's contributions are calculated for the deductions and levies. The paysheets are entered in the spreadsheet as follows:
  • Earnings - column C and D

  • Gross Pay - column E

  • Deductions - column F to I

  • Gross Deductions (Total Deductions) - column J

  • Net Pay - column K - This is the Gross Salary or Wage minus the Total Deductions (or Gross Deductions).

This information needs to be entered in a Journal (General Journal or a Salary or Wages Journal) in TurboCASH to record the expenses (salaries / wages and employer's contributions) and the creditors (deductions and net salaries / wages). If you pay the deductions (deducted from salaries / wages) and the Net salaries / wages to the employees, you need to enter these transactions in the Payments Journal or batch for the bank account out of which you are making payments (cheques / bank transfers, etc.).