Posting Employers NIC Contributions

[Allisondre]

When posting these to the ledgers there seems to be two ways to do it. My book says it goes in the debit side of the wages expense account and credit the PAYE/NIC for HM Rev account.
However, the past papers debit it and credit also to the wages and salaries.
Can someone tell me the correct way to do this?

[Gianni]

Both ways will be correct. Personally to post wages I'd do a journal like this:

DR Gross Wages
DR Employers NI
CR Net Pay Control A/C
CR PAYE Control A/C

I think the AAT post everything individually and make use of a control account to ensure everything balances. So they post seperate journals for each item, e.g. seperate journal for gross wages, net wages, employers ni etc.

[Allisondre]

Many thanks