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

monkeypuzzle47
monkeypuzzle47 Registered Posts: 134 Dedicated contributor 🦉
edited June 18 in AAT member discussion
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.

Comments

  • Monsoon
    Monsoon Registered Posts: 4,020 Beyond epic contributor 🧙‍♂️
    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
    deanshepherd Registered Posts: 1,798 Beyond epic contributor 🧙‍♂️
    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.

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