Posting SMP recovered and compensation on Sage

Jo Legg

Hi

Can anyone tell me please what codes to post these on Sage payroll.

I know I have to initially debit gross pay for SMP paid but not sure what codes to use to show the 100% recovered and 3% compensation (client does qualify for Small Employers Relief).

Also is it 3% of SMP paid ?

Thanks

Dcollins

Cr gross pay with the 100% recovered
Cr employer's NIC with the 3% compensation (assuming you normally use this code for er's NIC)
Dr PAYE/NIC liability

The compensation is 3% of the SMP paid, yes.

Jo Legg

Thanks very much-sorry just quick, credit employers NIC 7xxx expense code or 2xxx liability code?

deanshepherd

I credit the compensation to other income as it is not taxable. Reducing the NIC'ers may lead to someone forgetting to remove it again for the tax comps.

Monsoon

deanshepherd wrote: »

I credit the compensation to other income as it is not taxable. Reducing the NIC'ers may lead to someone forgetting to remove it again for the tax comps.

Who's got reducing (k)nic(k)ers? You should be looking here if that's the case! http://forums.aat.org.uk/showthread.php?33491-The-naked-accountants-calendar-2013-%28SFW%29&p=241539#post241539

Jo Legg

Good point, thanks!

Mancunian

deanshepherd wrote: »

I credit the compensation to other income as it is not taxable. Reducing the NIC'ers may lead to someone forgetting to remove it again for the tax comps.

Your accounting seems fine but I am struggling to find a specific reference to the compensation being none-taxable. It looks as though you know this for a fact but how did you ascertain this please?

Thanks