Gross, Nett salary, and tax

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Trebor777
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Gross, Nett salary, and tax

Post by Trebor777 »

Hi

My salary is paid into my current account nett of tax. I would like to try to track my gross & nett salary, and the tax paid. I know I can split a transaction between payees & categories, but can I split it between accounts ?

I wonder about paying the gross salary into my current account, then sending the tax to a new account 'income tax'

Recommendations please?

Thanks as always

K

dariottolo
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Re: Gross, Nett salary, and tax

Post by dariottolo »

If your gross salary is 100 and taxes 20, on your current account you can register a credit of 100, payee "your employer", category "monthly gross pay" and at the same time you have to register a debit of 20, payee "local tax authority", category "income taxes".

The balance of your current account increases for 80, which is your net pay.

Although this is possible, it is not coherent with the reality: your current account received just a credit of 80.

Plus, at least where I live, there are taxes on each purchase you make. Every time you buy something, you should split that too if you really want to know how much taxes you pay.

just my 2 cents

Aitch
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Re: Gross, Nett salary, and tax

Post by Aitch »

I wanted to do the same thing, so decided it was easiest to have a 2nd account - wages comes in, deductions come off, transfer whats left to proper account. These are all setup as Recurring.

That way you can get a really good visual idea of what you pay and where money goes and comes from.

Just a thought.

:-)

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