[GNC] How do you record the rounding of your netpay?

[Patrick James]

In my view it's going to be very difficult to justify spending any time tracking a whole bunch of zeroes with a contra equity account. I would not even want to see that on the books, much less spend time every pay period adjusting the contra account balance to some new amount less than 1.

At the end, the final paycheck, I'm betting the final paycheck is also rounded up, so that over the entire life of employment, the maximum "extra" paid is under 1, with an expected value of around 0.50.

This is all just a bunch of zeros, and the cost to track it is less than the value of the information.


> On 01/27/2024 3:14 PM PST David Cousens <davidcousens49 at gmail.com> wrote:
> 
>  
> If you really want to track this you could setup a contra account to your Income acct which sums into the Income account e.g.
> 
> first month:
> 
> Income                   Credit 1800.50
> Asset:Taxes withheld     Debit   300.00
> Income::Pay rounding     Credit    0.50
> Asset:Bank               Debit  1501.00
> 
> second month:
> 
> Income                   Credit 1800.30
> Asset:Taxes withheld     Debit   300.00
> Income:Pay Rounding      Debit    00.30
> Asset:Bank               Debit  1500.00
> 
> The balance in the Pay rounding account should hover around 0.00. and your bank account will record the correct balance
> in the account at the bank.
> 
> 
> I cannot for the life of me understand why any payroll system would be rounding to the nearest pound if they are using
> direct credit of your pay. To the nearest penny yes but not the nearest pound. Seems like a hangover from when they paid
> in cash and didn't want to be bothered with coins.
> 
> David Cousens
> 
> On Sat, 2024-01-27 at 08:17 +0000, Oleander via gnucash-user wrote:
> > Hello everyone,
> > 
> > how do you record the rounding of your netpay?
> > 
> > After subtracting taxes from my gross pay, if the result of my net pay is a floating point number, my company rounds
> > this number up to the next integer then credits the amount to my bank account. But the rounding is just a loan, the
> > next month it will be charged from my gross pay along with taxes and if the result of my net pay again is a floating
> > point number, it will be rounded up to the next integer and then credited to my bank account and so on.
> > 
> > Eg:
> > 
> > 1st Month
> > 
> > Gross Pay = €1800.50
> > 
> > Taxes = €300
> > 
> > Netpay = 1500.50 --> 1501€ (amount credited to my bank account)
> > 
> > 2nd Month
> > 
> > Gross Pay = €1800.30
> > 
> > Taxes = €300
> > 
> > 1st Month Rounding = €0.50
> > 
> > Netpay = 1499.80 --> 1500€ (amount credited to my bank account)
> > 
> > Thank you
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