Payroll Journal Errors.
When using the UK Salary Sacrifice scheme, the payroll journal incorrectly posts the gross deduction to Net Wages Liability. This means the balance on Net Wages is meaningless and therefore useless and, worse, because this deduction should be an expenses credit, the Balance Sheet and Profit & Loss are both incorrect.
The deduction can only be posted to a current liability account, so although I can divert the posting from Net Wages to a special liability account, I then have to use a manual journal every payroll to post it from liabilities to the Salaries expense account.
This is serious because it's messy, fiddly and if not corrected then the accounts are wrong.
The solution is for Payroll Salary Sacrifice deductions to offer ONLY expenses/overheads accounts with default to the main salaries/wages account.
Thank you.
Tricia Callow
shared this idea
Thank you for sharing this on the Product Ideas website.
We can see that you have since raised this with Xero Support, who identified that the issue was due to your payroll settings. While your payroll is working as designed, it is incredibly important to ensure the settings, as well as the expense and liability accounts are correctly set up prior to posting payroll.
If you need any further assistance with adjusting these settings, please don't hesitate to reach back out to our support team.
