Payroll Data and GL Codes

Overview

Payroll deals with costs for your business and accrued liabilities. with GL Integrations, all data in and relating to a pay run will be exported in varying formats. This includes pays for both employees and contractors.

Typical transactions include:

Transaction	Credit	Debit
You paid wages	Asset Account (Bank Account)	Expense Account (Wage Expenses)
You accrued liabilities	Liability Account (Leave Liability Account)	Expense Account (Leave Expenses)
You paid out liabilities	Asset Account (Bank Account)	Liability Account (Leave Liability Account)

Generation of GL Codes for Payroll Data

Payroll GL codes are generated when the export is run and will use whatever GL codes are set at the time.

If you need to change your GL codes, you can do so but you will need to consider whether you need to do it before or after exporting your existing payroll data.

Assigning a GL Code to a Payroll Item

The line items for each element of Payroll are assigned a GL Code. These are automatically assigned based on the following:

Pay Item	Assigned a GL code following a hierarchy: Specified GL Group If you have set codes for General payroll items against the employee or job, these will override the GL Group (Wage Expense, PAYG Tax Liability, Payroll Tax Expense/Liability, Recoverable Deduction, Workcover Expense/Liability) Leave Category, if set to Forced Charge Item, if set to Forced Expense Category, if set to Forced Pay Item, if set to Forced on the Charge Item Invoice Item Type Job > Payroll Admin Employee > Payroll Admin Customer > Integration (if in use) Leave Category Expense Category Pay Item Payroll Entity
Superannuation	GL codes for Expense Account and Liability Account are set per item in Config > Payroll > Superannuation. These can be held in a Specified GL Group as well. Please be aware that some integrations will still require codes to be set against the specific item rather than in the GL Group.  If you require a different GL code for different employees, you will need to create separate Superannuation items
Deduction	GL codes for expense Account and Liability Account are set per item in Config > Payroll > Deductions. These can be held in a Specified GL Group as well. Please be aware that some integrations will still require codes to be set against the specific item rather than in the GL Group. If you require a different GL code for different employees, you will need to create separate Deduction items.

GL codes for payroll data cannot be manually edited or assigned. Please ensure that you have the correct configuration based on the Payroll Hierarchy.

Additional Payroll GL Accounts

The GST Paid Account code is set in Config > Company Management > select the entity > Payroll. This needs to be set for each entity.

Asset Accounts

Payments made out of and received into asset accounts are assigned a GL code. Asset accounts are assigned in Config > Company Management > select entity > Accounts for each entity.

Leave Liability

Leave categories can be configured to track the leave as a liability in Config > Leave.

To set a Leave category as a liability, tick the ‘Is a Liability’ checkbox. The GL Liability Account Code field will appear so that you can set the liability account for the category.

When leave is accrued, the following transactions would typically take place:

• A credit to the Liability Account (Leave Liability Account)
• A debit to the Expense Account (Wage Expenses)

When leave is spent (taken), the following transactions would typically take place:

• A credit to the Asset Account (Bank Account)
• A debit to the Liability Account (Leave Liability Account)