Hi, I am doing a pay slip for myself. Does it deduct the expenses and then calculate the tax? With Net Pay

Hi, I am doing a pay slip for myself. Does it deduct the expenses and then calculate the tax? With Net Pay

1 answer

Peter Connor Staff February 6, 2016

Hi Johnny – Yes, business expenses are tax exempt, so they won’t be included when calculating taxes for net or gross wages.

  1. so if I took home say 3k in a month
  2. I enter 3k into net
  3. Peter Connor February 6, 2016
    Just hang on I'm typing you an aswer
  4. bullet then deducts the expenses from the 3k and then calculates the tax liability
  5. We are quicker in Leitrim Peter
  6. Peter Connor February 6, 2016
    Sure it does everything automatically for you.
    So enter bills/mileage and mark them as paid by you and they'll automatically go into the expenses box.
    Expenses are money that the company owes you. They don't come from Air as most people think. So you've already paid tax on that money you used to pay for the expense so the government lets you take that money out of the company tax free.
    All the tax is calculated normally and automatically - remember we create all your returns.
    If you've not setup employees before we strongly recommend importing the P2C file from your ROS account. That will have all the correct tax details for everyone, again we then set-up everything automatically.
    So you can pay yourself net or gross meaning if you only have 2,000 left in your bank account you can enter that and we calcuate the tax backwards so you know even with your 2k you'll have enough for your tax.
    The Gross is opposite
  7. Peter Connor February 6, 2016
    Yes. If you want 3k and 2k were expenses, then enter 3k as the next wage and it will deduct the 2k before calcuating expenses.
  8. Peter Connor February 6, 2016
    "next wage" should read "net wage" - friday fingers by me!
  9. before calculating tax you mean?
  10. Peter Connor February 6, 2016
    Yes, before calculating taxes. Even more Friday fingers!
  11. So I should always use Net then really
  12. and put in what I gave myself
  13. and let bullet do the rest
  14. Peter Connor February 6, 2016
    Yes - that's definitely the easiest way to use it if you always want to make sure you get the same amount.

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