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Organisation Tab Xero will automatically post the journal entries every time a pay run is processed. The organisation tab details the nominal codes that the journals will be posted to. A list of nominal codes can be found from your Chart of Accounts and can be used here to refer back to. We would recommend that a joint PAYE and NIC Liability Account is set up and linked as this makes it easier to reconcile when the payment is made. The Wages Expense Account is a nominal code included within the Profit and Loss Account to record the Gross Wages. The Wages Payable Account is a liability Account that should be mapped to the Balance Sheet. This will show a liability for the net wages payable to the employees. As with the Wages Expense Account, the Employers NIC Account is mapped to the Profit and Loss Account and should be in a similar range to the Gross Wages. The Bank Account should be the account that will be used to make the payments.
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