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How do I set up a Social Club liability/offset account in Accounts Hosted?

Annette_8328831

My employer would like to run a social club where $5 per week is deducted from employee wages (with their written consent). I am comfortable with setting up the Payroll liability but where should the funds be transferred to please? Should I set up a "dummy bank Account" called Social Club Account? Or what category should the supplier account be listed as? Thankyou

Comments

Charley

I'd probably set up a liability account because at the end of the day it'd money that does not belong to the company and will be paid out at Xmas or whenever

Annette_8328831

Thankyou for your reply Charley. Do you mean you would set up Supplier called Social Club? Could you explain further please

Kris_Williams

When you enter the wages this deduction will go to whatever account you set it up to, as Charley suggested a liability account called Social club e.g.
There will be no Supplier until the money is withdrawn, and you can call that whatever you like, I wouldn’t make it a supplier though I would enter it in the Other Names list

Sheryl_10313093

Kris where do I find the Other Names List option? I am using RAH.

I thought I replied already Annette. But I am in the process of setting up a Social Club account also. I have created a liability account under Payroll Liabilities labeled Social Club. The deduction will go to this account. I have opened a bank account for the Social Club where once a month the money will be paid from the Liability account to the Social Clubs bank account as it is separate from the business. For those advising on this query, would this be a correct process?

Kris_Williams

When you enter a new name in a cheque or bill etc it will say its a new name and do you want to set it up, the choices are Customer, Supplier, Employee or Other. You should also find it under lists, but I always enter new names as I create the transaction

Annette_8328831

Thankyou Kris

Annette_8328831

Thankyou Sheryl.

Annette_8328831

So if we don't set up a new bank account, we need an offset account to "journal" the money to periodically, the same way as we journal the superannuation and withholding tax once they have been paid. I guess this journal could be to the Other "Social Club" category. Am I on the right track please Kris?

Kris_Williams

When you process the wages you will have to setup the Liability account that the deduction is going to, this will then show the balance ‘in’ the social club, no need for any further journals. This liability account will work the same as a bank account, when the money gets taken out of the normal account it will just be transferred from the main account to the Social Club Liability account and that account will then show a zero balance.
I’m happy for you to ring me if you are still unsure. 0415 940 843

Sheryl_10313093

Excellent thank you!

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