payroll query - correcting account entries for recording smp refunds and compensation
monkeypuzzle47
Registered Posts: 134 Dedicated contributor 🦉
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.
What is the correct journal to record smp refunds and compensation in the accounts.
0
Comments
-
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)0 -
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.0
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