Re: [GNC] How do you record the rounding of your netpay?
As the others have noted, it may or may be not worth your time to track
this - but it is your decision.
The "Rounding" (better called "Paycheck Rounding") could probably be a
liability or an asset... possibly a sub-category of "Gross Pay" (I call
mine "Salary"). You should record both changes in the same account; if
you're using liabilities, you would credit (right-hand column) the Paycheck
Rounding by 50; the Second paycheck would have a debit (left-hand column)
of 50 and a credit of 70. If they are always rounding up, then perhaps it
makes sense as a liability.
On Sat, Jan 27, 2024 at 4:22 PM Oleander via gnucash-user <
gnucash-user@gnucash.org> wrote:
> Hi,
> suppose that today I received my first paycheck from my new company, I add
> this entries:
>
> First Paycheck
>
> Income:Gross Pay €-1799.50
>
> Expenses:Taxes €300
>
> Liabilities:Rounding €-0.50
>
> Assets:Bank:Checking €1500 ;; net pay
>
> €0.50 is just lent to me, the next month this amount will be charged from
> my gross pay along with taxes and if the result is a floating point number
> it will be rounded up to the next integer and so on.
>
> Now the questions are:
>
> 1) Is the above entry Liabilities:Rounding €-0.50 correct?
>
> 2) How do I record the amount that will be charged in the second paycheck?
>
> Second Paycheck
>
> ```
> Income:Gross Pay €-1799.80
>
> Expenses:Taxes €300
>
> ? {€0.50 to be charged}
>
> Liabilities:Rounding €-0.70
>
> Assets:Bank:Checking €1500 ;;net pay
> ```
>
> Original Message
> On Jan 27, 2024, 16:23, Maf. King wrote:
>
> > I don't have this sort of rounding arrangement on my paychecks, but I do
> have similar with one shareholding I have. I suggest you use GC to model
> reality, as far as possible.. Each paycheck gives you pennies of a
> liability (loan) from your employer. So use a liability account in your GC
> tree for "payroll rounding", and transfer into and out of that each cycle.
> HTH, Maf. On Saturday, 27 January 2024 08:17:03 GMT 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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Re: [GNC] How do you record the rounding of your netpay?
Yep, this is the 'principle of materiality' in accounting. The precision as to what is considered 'material' or not varies by entity, thus, some corporations don't even blink until a number gets into the $10k or even higher range. My personal rule is that if the amount is worth less than how much I would get paid to find the error based on the time it takes, then I just record it as miscellaneous or cash over/short and move on. In this particular case, I'm in agreement to just record what you actually receive as your pay. It isn't even a concern until the eventual final check which would be 'trued up' anyway. Regards, Adrien On 1/27/24 5:31 PM, Patrick James wrote: 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. ___ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
Re: [GNC] How do you record the rounding of your netpay?
Patrick, I agree completely but some of us are unfortunately pedantic. David Cousens On Sat, 2024-01-27 at 15:31 -0800, Patrick James wrote: > 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 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 +, 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 > > > ___ > > > gnucash-user mailing list > > > gnucash-user@gnucash.org > > > To update your subscription preferences or to unsubscribe: > > > https://lists.gnucash.org/mailman/listinfo/gnucash-user > > > - > > > Please remember to CC this list on all your replies. > > > You can do this by using Reply-To-List or Reply-All. > > > > ___ > > gnucash-user mailing list > > gnucash-user@gnucash.org > > To update your subscription preferences or to unsubscribe: > > https://lists.gnucash.org/mailman/listinfo/gnucash-user > > - > > Please remember to CC this list on all your replies. > > You can do this by using Reply-To-List or Reply-All. > ___ > gnucash-user mailing list > gnucash-user@gnucash.org > To update your subscription preferences or to unsubscribe: > https://lists.gnucash.org/mailman/listinfo/gnucash-user > - > Please remember to CC this list on all your replies. > You can do this by using Reply-To-List or Reply-All. ___ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
Re: [GNC] How do you record the rounding of your netpay?
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 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 Credit0.50 > Asset:Bank Debit 1501.00 > > second month: > > Income Credit 1800.30 > Asset:Taxes withheld Debit 300.00 > Income:Pay Rounding Debit00.30 > 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 +, 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 > > ___ > > gnucash-user mailing list > > gnucash-user@gnucash.org > > To update your subscription preferences or to unsubscribe: > > https://lists.gnucash.org/mailman/listinfo/gnucash-user > > - > > Please remember to CC this list on all your replies. > > You can do this by using Reply-To-List or Reply-All. > > ___ > gnucash-user mailing list > gnucash-user@gnucash.org > To update your subscription preferences or to unsubscribe: > https://lists.gnucash.org/mailman/listinfo/gnucash-user > - > Please remember to CC this list on all your replies. > You can do this by using Reply-To-List or Reply-All. ___ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
Re: [GNC] How do you record the rounding of your netpay?
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 Credit0.50 Asset:Bank Debit 1501.00 second month: Income Credit 1800.30 Asset:Taxes withheld Debit 300.00 Income:Pay Rounding Debit00.30 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 +, 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 > ___ > gnucash-user mailing list > gnucash-user@gnucash.org > To update your subscription preferences or to unsubscribe: > https://lists.gnucash.org/mailman/listinfo/gnucash-user > - > Please remember to CC this list on all your replies. > You can do this by using Reply-To-List or Reply-All. ___ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
Re: [GNC] How do you record the rounding of your netpay?
You are over complicating matters.
You are trying to record (account for) an UNKNOWN situation. At least I
think unknown. Are they telling you "we rounded this up by y amount and
will later round down to make up for it". Or, as I rather suspect, it is
just happening.
How about each month simply recording from your pay statement, ignoring
whether that was rounded up or down by a few pence.
You seem to be worrying about what your REAL pay is as opposed to what
is i-on your statement. In other words, thinking "my pay is REALLY X but
they paid me X + epsilon (or X - epsilon) so I owe them (or they owe me)
epsilon. A lot easier for you to not think of REAL amount being constant
but rather that your pay amount varies up an down by epsilon.
Michael D Novack
On 1/27/2024 11:11 AM, Oleander via gnucash-user wrote:
Hi,
suppose that today I received my first paycheck from my new company, I add this
entries:
First Paycheck
Income:Gross Pay €-1799.50
Expenses:Taxes €300
Liabilities:Rounding €-0.50
Assets:Bank:Checking €1500 ;; net pay
€0.50 is just lent to me, the next month this amount will be charged from my
gross pay along with taxes and if the result is a floating point number it will
be rounded up to the next integer and so on.
Now the questions are:
1) Is the above entry Liabilities:Rounding €-0.50 correct?
2) How do I record the amount that will be charged in the second paycheck?
Second Paycheck
```
Income:Gross Pay €-1799.80
Expenses:Taxes €300
? {€0.50 to be charged}
Liabilities:Rounding €-0.70
Assets:Bank:Checking €1500 ;;net pay
```
Original Message
On Jan 27, 2024, 16:23, Maf. King wrote:
I don't have this sort of rounding arrangement on my paychecks, but I do have similar with one shareholding I have. I suggest you use GC to model reality, as far as possible.. Each paycheck gives you pennies of a
liability (loan) from your employer. So use a liability account in your GC tree for "payroll rounding", and transfer into and out of that each cycle. HTH, Maf. On Saturday, 27 January 2024 08:17:03 GMT
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 > ___ > gnucash-user mailing list >
gnucash-user@gnucash.org > To update your subscription preferences or to unsubscribe: > https://lists.gnucash.org/mailman/listinfo/gnucash-user > - > Please remember to CC this list on all your replies.
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Re: [GNC] How do you record the rounding of your netpay?
Hi,
suppose that today I received my first paycheck from my new company, I add this
entries:
First Paycheck
Income:Gross Pay €-1799.50
Expenses:Taxes €300
Liabilities:Rounding €-0.50
Assets:Bank:Checking €1500 ;; net pay
€0.50 is just lent to me, the next month this amount will be charged from my
gross pay along with taxes and if the result is a floating point number it will
be rounded up to the next integer and so on.
Now the questions are:
1) Is the above entry Liabilities:Rounding €-0.50 correct?
2) How do I record the amount that will be charged in the second paycheck?
Second Paycheck
```
Income:Gross Pay €-1799.80
Expenses:Taxes €300
? {€0.50 to be charged}
Liabilities:Rounding €-0.70
Assets:Bank:Checking €1500 ;;net pay
```
Original Message
On Jan 27, 2024, 16:23, Maf. King wrote:
> I don't have this sort of rounding arrangement on my paychecks, but I do have
> similar with one shareholding I have. I suggest you use GC to model reality,
> as far as possible.. Each paycheck gives you pennies of a liability (loan)
> from your employer. So use a liability account in your GC tree for "payroll
> rounding", and transfer into and out of that each cycle. HTH, Maf. On
> Saturday, 27 January 2024 08:17:03 GMT 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
> > ___ > gnucash-user mailing list
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> unsubscribe: > https://lists.gnucash.org/mailman/listinfo/gnucash-user >
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Re: [GNC] How do you record the rounding of your netpay?
This rounding is not material to your financial condition. Tracking the rounding is not worth the time and effort necessary, so you could adjust your gross pay for the rounding. First month would be an increase (in pay/earnings) of €0.50, and the second month would be a decrease by €0.30. Over time your recorded Salary on your books will never drift more than €1, as there is always an adjustment to trend toward a €0 difference. 1st Month €1501 DR Cash €300 DR Taxes €1801 CR Salary 2nd Month €1500 DR Cash €300 DR Taxes €1800 CR Salary > On 01/27/2024 12:17 AM PST 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 > ___ > gnucash-user mailing list > gnucash-user@gnucash.org > To update your subscription preferences or to unsubscribe: > https://lists.gnucash.org/mailman/listinfo/gnucash-user > - > Please remember to CC this list on all your replies. > You can do this by using Reply-To-List or Reply-All. ___ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
Re: [GNC] How do you record the rounding of your netpay?
I don't have this sort of rounding arrangement on my paychecks, but I do have similar with one shareholding I have. I suggest you use GC to model reality, as far as possible.. Each paycheck gives you pennies of a liability (loan) from your employer. So use a liability account in your GC tree for "payroll rounding", and transfer into and out of that each cycle. HTH, Maf. On Saturday, 27 January 2024 08:17:03 GMT 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 > ___ > gnucash-user mailing list > gnucash-user@gnucash.org > To update your subscription preferences or to unsubscribe: > https://lists.gnucash.org/mailman/listinfo/gnucash-user > - > Please remember to CC this list on all your replies. > You can do this by using Reply-To-List or Reply-All. ___ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
[GNC] How do you record the rounding of your netpay?
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 ___ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
Re: [GNC] How do you record the rounding of your netpay?
That sounds like an accrual situation. If they are consistently owing you, then use an asset account. If you are consistently owing them, use a liability account. You could name it 'Payroll Rounding Accrual' or something similar. If the rounding bounces back and forth between asset and liability, then just pick one. If it ever ends up in the opposite normal sign for the balance, then you know at that point in time, it is a reverse balance account and effectively the other 'type'. This matters little from paycheck to paycheck, and probably doesn't even matter on an annual basis either. Regards, Adrien On 1/14/24 12:37 AM, Oleander via gnucash-user wrote: Hello everyone, my netpay each month is rounded up to the next integer. This rounding in my paycheck is indicated under the voice "Actual rounding" then it is charged in the paycheck of the following month under the voice "Previous rounding" and the netpay, in turn, rounded up to the next integer again. Thus my net pay is gross pay minus deductions minus the amount of the "Previous rounding". How would you record "Previous Rounding" and "Actual Rounding"? I'd be inclined to use these accounts plus what is needed to calculate the rounding: Assets:Bank1:Checking € Income:Salary Expenses:Taxes:State € Expenses:Taxes:Regional € Expenses:Taxes:Municipal € Expenses:Taxes:Social Security € Assets:Bank1:Checking ___ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
Re: [GNC] How do you record the rounding of your netpay?
On Mon, Jan 15, 2024 at 3:07 AM Oleander via gnucash-user <
gnucash-user@gnucash.org> wrote:
> Hello everyone,
>
> my netpay each month is rounded up to the next integer. This
> rounding in my paycheck is indicated under the voice "Actual rounding"
> then it is
> charged in the paycheck of the following month under the voice "Previous
> rounding" and the netpay, in turn, rounded up to the next integer again.
>
> Thus my net pay is gross pay minus deductions minus the amount of the
> "Previous rounding".
>
> How would you record "Previous Rounding" and "Actual Rounding"?
>
> I'd be inclined to use these accounts plus what is needed to calculate the
> rounding:
>
> Assets:Bank1:Checking €
> Income:Salary
>
> Expenses:Taxes:State €
> Expenses:Taxes:Regional €
> Expenses:Taxes:Municipal €
> Expenses:Taxes:Social Security €
> Assets:Bank1:Checking
>
> Thank you,
> ___
> gnucash-user mailing list
> gnucash-user@gnucash.org
> To update your subscription preferences or to unsubscribe:
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Interesting question.
First, I am not an accountant.
I'd have an account for "Paycheck Rounding" (but what type to make it, I'm
not sure; possibly a Liability?), and treat it like a deduction (when they
take away from your pay-"Previous Rounding"), and an addition (when they
add it-"Actual Rounding").
If I understood what you wrote, as an example, if your gross pay is $1000
and your deductions are 15.00, 7.25, 1.25, and 7.12, your net pay would be
969.38 - if they always "round up", there would be .62 of Actual Rounding,
making the deposited amount 970.
For the next paycheck, there would be an "Previous Rounding" reversal of
0.62, leaving 968.76, with an "Actual Rounding" of 0.24, making the
deposited amount 969.
So, for the first one, you'd have a split of
Assets: Bank1: Checking 970.00
Income: Salary: 1000.00
Expenses: Taxes: State 15.00
Expenses: Taxes: City:7.25
Expenses: Taxes: Municipal 1.25
Expenses: Social Security:7.12
Liabilities: Paycheck Rounding: 0.62 ("Actual Rounding")
If my understanding is correct, the Salary and the Paycheck Rounding would
be credits and everything else could be a debit.
The next paycheck would be
Income: Salary: 1000.00
Assets: Bank 1: Checking: 969.00
Expenses: Taxes: State: 15.00
Expenses: Taxes: City: 7.25
Expenses: Taxes: Municipal: 1.25
Expenses: Social Security: 7.12
Liabilities: Paycheck Rounding: 0.62 (reversing last paycheck's rounding
["Previous Rounding"])
Liabilities: Paycheck Rounding: 0.24 ("Actual Rounding")
As before, the Salary would be a credit and the Assets & Expense accounts
would be debits... the Paycheck Rounding for "Previous Rounding" would be a
debit of 0.62, and the entry for the Actual Rounding (0.24) would be a
credit.
--
_
Richard Losey
rlo...@gmail.com
Micah 6:8
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[GNC] How do you record the rounding of your netpay?
Hello everyone, my netpay each month is rounded up to the next integer. This rounding in my paycheck is indicated under the voice "Actual rounding" then it is charged in the paycheck of the following month under the voice "Previous rounding" and the netpay, in turn, rounded up to the next integer again. Thus my net pay is gross pay minus deductions minus the amount of the "Previous rounding". How would you record "Previous Rounding" and "Actual Rounding"? I'd be inclined to use these accounts plus what is needed to calculate the rounding: Assets:Bank1:Checking € Income:Salary Expenses:Taxes:State € Expenses:Taxes:Regional € Expenses:Taxes:Municipal € Expenses:Taxes:Social Security € Assets:Bank1:Checking Thank you, ___ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
