[Question] Posting Salaries and SARS deductions

[Morkelp]

Hi All, I am aware that salaries should be posted along with SARS so that the nett salary is shown in the expense acc and the SARS deductions are shown as a liability until [aid. I have a situation where my predecessor has been posting the salary straight out the bank statement and not been posting the SARS bit as a liability. Once the SARS amount is paid on the 7th of the following month is has been captured as an expense. This is a problem now as for the year end financials we need to have the SARS amount reflecting as a liability. Any suggestions on how to sort this out without having to redo everything from day one?
Many thanks.

[CLIVE-TRIANGLE]

Accrue the SARS payment.

Debit salaries credit accruals

Reverse the accrual 1/03/2014

Hi All, I am aware that salaries should be posted along with SARS so that the nett salary is shown in the expense acc and the SARS deductions are shown as a liability until

Actually what you should be doing is debiting the expense account with Gross salaries and company contributions and crediting liabilities, then debiting payments made to the liabilities. This will improve the quality of your monthly reporting. Perhaps that is what you meant.

[Morkelp]

Thanks very much. Yes sorry get tongue tied when typing. Much appreciated!!!!