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• # 93841
• Thu 26 Sep 2013 03:24 PM

Hi, a director at one of the companies I'm bookkeeping for has asked that I code all salaries (both directors and staff), to staff salaries and not to break it down between Directors and staff.  It's a small company so I see no benefit in seperating the two types of pay but is there another reason to do this other than for monitoring the costs incurred in each area?
Thanks
Laura 

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• # 93844
• Thu 26 Sep 2013 05:24 PM

Hi Laura,

If you just put Directors and staff salaries under one code the company's accountant will/should ask for a breakdown at the Financial Year-end as Director's Remuneration is shown separately in the Final Accounts.

If you can provide the accountant with proof of the Director's Remuneration and NI at the year-end from the payroll program then it will be ok just to put them through the one code  at the time of processing.

Personally I prefer to split them at each pay period. Why not ask their accountant which way they would prefer you to do it?

Marilyn  

• A clever person solves a problem.

  A wise person avoids it.

  Albert Enstein

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• # 93846
• Thu 26 Sep 2013 05:49 PM

Hi Marilyn,

Thank you, that's really helpful and makes perfect sense.

Much appreciated
Laura 

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