payroll query - correcting account entries for recording smp refunds and compensation

monkeypuzzle47

I wonder if someone could shed some light as I just cant think straight today.

What is the correct journal to record smp refunds and compensation in the accounts.

Monsoon

CR: SMP recovery

DR: Bank (if HMRC actually paid it to the employer) or Payroll Tax Control Account (if you are netting it off against the rest of the liability)

deanshepherd

I tend to have SMP recovery as a balance sheet code so the SMP payments can debit to there rather than the P&L.

The compensation I post to an 'other income' code in the P&L.