Help on spliting wages

[Kim Jones]

Thank you for answering my question.  I’m sorry for taking so long to reply.  I hope with your help I will get to the bottom of it and yes the credit and debits are totally confusing, I’m not sure if teaching myself is such a good idea but I will persevere. 
 
Kind Regards,
Miss Kim Jones
 
-----Original Message-----
From: Phil Longstaff [mailto:plongstaff at rogers.com]
Sent: Tuesday, October 06, 2009 12:24 AM
To: manjo at sa.chariot.net.au; Gnucash
Subject: Re: Help on spliting wages
 
I'm not sure of all of the details, but I can help.  Your base rate is income, extra hours are income.  I assume your "super salary sacrifice" and "payg" are withheld by your employer and then paid on your behalf?  What is your superannuation?

Basically, you would want 2 income accounts, one for base pay, one for extra.  If your "super salary sacrifice" and "payg" are withheld by your employer and paid on your behalf, then they are expense accounts.  If they are paid to you, and then you pay them at some point, they are liability accounts.

In accounting terminology (2 columns, one for debits, one for credits), 

Debit               Credit
Bank Acct
                       Income accounts
Expense accts
Liability accts

i.e. when you are paid, you debit (increase) your bank account, credit (increase) your income accounts and debit (increase) your expense/liability accounts.  I know it's confusing that both debit and credit increase accounts, but it's the type of account (bank vs credit vs debit) that determines whether a credit or debit increases that account.  For income account, credit increases and debit decreases.  For expense account, debit increases and credit decreases.  For bank account, debit increases and credit decreases.

For example, if your base pay is $1000, your extra pay is $200, $300 is withheld, then you have:

Debit                   Credit
                           Base income $1000
                           Extra income $200
Withheld $300
Bank $900

and the total debits = total credits, as they should in a balanced transaction.

BTW, the Opening Balances account is only required as the "other side" of a balanced transaction to set up your initial values in your accounts.  After that, you never need to use it again.  Thus, if you start using gnucash and have a bank balance of $200, gnucash sets up an initial transaction to debit the bank account by $200.  It needs an account to credit, in order to make this a balanced transaction, and Opening Balances is used.

Phil
 
  _____  

From: Kim Jones <manjo at sa.chariot.net.au>
To: Gnucash <gnucash-user at gnucash.org>
Sent: Monday, October 5, 2009 9:10:02 AM
Subject: Help on spliting wages

Hi,
I’m new and sorry to say, I am having a huge amount of trouble understanding
how I enter my salary which I want to split.  I want to track everything.  I
have tried studying the GNUCash contents help file and the Tutorial and
Concepts Guide but I just can not  seem to get it to make sense to me.  I
want to split my salary into:
1.    my base hourly rate
2.    extra hours
3.    super salary sacrifice (I make an extra contribution into my super fund)
4.    PAYG withholding(government income tax)
5.    superannuation (which is part of my salary which my employer pays). I
guess you know that….

So would someone please be kind enough to help me.  Do I have to enter my
salary into the Equity: Opening Balance account first and then have that
transferred into my Everyday Access account which is my bill paying account
and split my salary there?  or do I do the split in the Equity account
first?
I apologise for being so long winded and also hope the question is clear but
any help would go a long way.
I have the 2.2.9 GNUCash and am running XP Home edition. Not sure if you
need any more information than that.

Kind Regards,
Miss Kim Jones




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