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Depending on how you pay your employees (cash, cheque or electronically), there will be one or many withdrawals from your bank account. For example, if you pay employees electronically using a bank file downloaded from MYOB Essentials, there will be a single withdrawal from your bank account which is the total net amount paid to your employees. In this case you can match the lump sum to the individual pay transactions.

If each employee's pay is a separate withdrawal from your bank account, you can match these transactions to the corresponding pay transaction.

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When you do a pay run, a separate payroll transaction is recorded for each employee in the pay run. This transaction allocates each part of the pay to various expense and liability accounts.

 

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titleTo view a payroll transaction
  1. Go to the Banking menu and choose Transaction history.
  2. In the Account field, choose your wages bank account (the one you specified when setting up payroll).
  3. In the From and To fields, select the date range for the pay. Here's an example pay where 4 employees have been paid:

    Transaction history page with 4 pays listed

  4. Click the reference number for an employee's pay (which starts with PY) to open the transaction.The payroll transaction is displayed:

    Example payroll transaction with values allocated to applicable accounts

This example shows:

The debits and credits which make up this pay transaction:

  • The first line represents the wage expense to your business for this employee's pay ($750.00)
  • The next two lines represent the superannuation ($71.25 being a debit (expense) to your business, and a matching credit (liability) which goes to the employee's super fund)
  • The next line is the PAYG (tax) withheld from the employee's pay ($96.00)
  • The last line in the list represents the employee's net pay ($654.00), allocated to account 1-1000 Westpac bank account (the account set as the Bank account for paying wages in your payroll settings)

Matching and allocating payroll transactions

If you use bank feeds or import bank statements for your payroll bank account (s)for paying wages, the imported transactions can be easily matched to the applicable pay transactions in MYOB Essentials payroll transactions.

These bank transactions...are handled like this...
Employee pays
PAYG/PAYE payments to the ATO/IRD

When you pay your PAYG/PAYE to the ATO (Australia) or IRD (New Zealand), you can match the transaction to the corresponding spend money transaction in MYOB Essentials.

Superannuation payments made via MYOB's super portal

For super payments made through MYOB's super portal (Australia only), when the super payment transaction appears in your bank feed, simply allocate it to your Superannuation Payable liability account.

If any of your employees have a salary sacrifice agreement you'll need to allocate the transaction to your Payroll Deductions account.

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titleRelated topics
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Do a pay run

Adding employees

Entering Paying leave on the pay run

Processing a final pay

Paying employees electronically

Changing or deleting a pay

Pay centre

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