Chart of Accounts
- PayROL requires a correctly configured Chart of Accounts to function
- Every pay is written to its own journal to ensure accuracy
- Every Expense (Debit) account requires a Provision account (Credit) to blanace
Key GL Accounts - Australia
EXPORT your Chart of Accounts from your Accounting System (eg: MYOB, Xero, etc) Send it to us as a SPREADSHEET
These are used by payROL for reporting purposes and must be set up correctly for accurate reporting and use.
Minimal Required Accounts
|Gross Pay||The is what the individual gets paid before tax|
|Tax||PAYG Provision / the amount of tax withheld from the employee|
|Bank||The amount that that|
|Super. Expense||The amount of superannuation for a pay|
|Super. Provision||The amount of superannuation liability for a pay|
|Payroll Tax $STATE Expense||The amount of payroll tax for a pay for a specific *$STATE*|
|Payroll Tax $STATE Provision||The amount of payroll tax liability for a pay for a specific *$STATE*|
|WorkCover $STATE Expense||The amount of WorkCover for a pay for a specific *$STATE*|
|WorkCover $STATE Provision||The amount of WorkCover liability for a pay for a specific *$STATE*|
Other Desired Accounts
|Salary Sacrifice||If your employees use salary sacrifice then we need to know which account to use so that we can report it onto ATO Payment Summaries|
|Misc Deductions||We strongly suggest that you set up deductions for Centerlink, Child Support and any other logical group to help you with your reconciliation and so that we can show them on payslips and reports.|
|Misc Leave Provisions||We strongly suggest that you set up accounts for RDO, Sick, Annual and any other logical leave grouping. Without these accounts leave accruals will not work|
Chart of Accounts Explanations
- Account Code: This is a unique identifier of your GL Account Code. We highly recommend that you do not duplicate GL Account Codes between entities and if possible between divisions.
- Description: This is a human friendly description of your GL Account Code.
- Group: This is optional but we recommend keeping these in line with your Accounting System. See below for more details.
- Pay Journal: This indicates if the GL Account Code should be on the Batch Reconciliation Report / exported into your accounting system. It is crucial that the report balances before exporting data. This means you need to make sure both the correct credit and debit accounts are included.
- Deduction: This GL Account Code allows you to control the use of accounts for deduction purposes. It is important that all core accounts, such as gross pay, tax, bank, PRT, WC and superannuation are not used as deduction accounts.
- Gross Pay: This is a very important GL Account Code as it has implications for calculating tax. All leave payments are Gross Pay Accounts and should be marked as such.
- Payslip: This indicates if a GL Account Code should appear on your employee's payslips. It is important that you only indicate relevant accounts to avoid confusion.
- Leave: This is an identifier of your GL Account Codes that are Leave Provisions/Accruals. This is important so that when leave is paid out this account balance can be adjusted.
- Bank: This is a unique identifier of your Bank/Net Wages GL Account Code. We highly recommend that you do not duplicate GL Account Codes between entities and if possible between divisions.
- Commission: This is a unique identifier of your Commission GL Account Code.
- Asset accounts the different types of economic resources owned or controlled by an entity. Common examples of asset accounts are cash on hand, cash in bank, real estate, inventory, prepaid expenses, goodwill, and accounts receivable.
- Liability accounts represent the different types of economic obligations of an entity, such as accounts payable, bank loans, bonds payable, and accrued expenses.
- Equity accounts represent the residual equity of an entity (the value of assets after deducting the value of all liabilities). Equity accounts include common stock, paid-in capital, and retained earnings. The type and captions used for equity accounts are dependent on the type of entity.
- Revenue or income accounts represent the company's earnings and common examples include sales, service revenue and interest income.
- Expense accounts represent the company's expenditures. Common examples are utilities, rents, depreciation, interest, and insurance.
- Contra-accounts are accounts with negative balances that offset other balance sheet accounts. Examples are accumulated depreciation (offset against fixed assets), and the allowance for bad debts (offset against accounts receivable).
Key GL Accounts - New Zealand
Gross Pay PAYE Tax Net Pay (Bank) Kiwi Saver Deduction Kiwi Saver Employer Expense Kiwi Saver Employer Provision ESCT Employer Expense ESCT Employer Provision ACC Expense ACC Provision
Annual Leave Expense Annual Leave Provision Deduction Account (Misc)