Employees will be paid their wages or salaries net of tax and national insurance deducted. In addition, the employer is due to pay employer's national insurance.
The profit and loss expense figures must include the full cost of employing personnel.
The balance sheet must show the full liability to HMRC for tax and national insurance and the pension creditor, if any.
A wages control account will give a check within an accounting system that the net pay actually paid equals the pay due, as calculated by the payroll system.