We are currently migrated from Sage to Zoho.  This will make sense to all UK companies paying wages inc NIC and PAYE.

Is there any reason why we cannot complete the following manual journal to handle our wages?

As we pay our UK taxes, called NIC and PAYE, in the month after we pay our wages to our staff.  We want to hold the payment of taxes on the Balance sheet until they are paid.  

Example, where wages are calculated on the 25th of the month.

Dated 25th Month

Using manual journals create a DEBIT entry (P&L) to Gross Wages and Employers NI .e.g. £10,000 and £1,000 respectively

Then a CREDIT entry (balance sheet) to NET WAGES, the total of PAYE and Employers NIC

Then

Dated 30th Month (when the employees are paid)

Bank > Expenses > NET WAGES 

Then, 19th of the following month

Bank > Expenses > PAYE and Employees NIC

Just a thought!

Please reply if you think this will or will not work using Zoho Books

Thanks!

Richard