What tax code should I assign to "Salaries" as an expense when I'm writing cheques?
I don't use the Payroll function (I don't know how) so I still calculate wages manually and then use a third party ap for STP. But I've just been forced to create a new company after making a huge error in my existing company, and now I'm being forced to re-create suppliers, re-create rules and assign tax codes to expenses.
Obviously wages / salaries aren't NCG, so are they NCF or should I leave the tax code blank?
Thank you, Rachael Coco
Answers
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Just leave the tax code blank.
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Spot on Bruce. Wages are not taxable supplies and not subject to GST
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@RJCoco It would be a lot more efficient/accurate/automated to use the payroll feature as this calculates & tracks everything automatically as well as allowing you to generate payslips βΊοΈ
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Thank you @Bruce, @Zappy and @Acctd4.
I have left it blank and will endeavour to learn how to use Payroll in the future. I'm out of my depth, having been thrust into bookkeeping for my husband's business without any training, and a lack of confidence and fairly consistent mistakes keep me from trying anything new.
My accountant initially set up my company and the line items and tax codes, but the world's biggest mistake on Sunday caused me to incorrectly enter 1300+ transactions when I tried to be clever and use a Transaction Rule and CSV file for the first time. Now I'm having to set up a new company because it is apparently quicker than manually editing each and every cheque that was entered incorrectly. Lesson learned - don't try things if you don't know what you're doing!
Appreciate your help :-)
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It's always daunting when you're unsure π’ Feel free to get in touch with me direct if you'd like some 1-on-1 customised training π
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