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Posting SMP recovered and compensation on Sage

Jo LeggJo Legg Settling In NicelyRegistered Posts: 20
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

Comments

  • DcollinsDcollins Well-Known Registered Posts: 179
    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 LeggJo Legg Settling In Nicely Registered Posts: 20
    Thanks very much-sorry just quick, credit employers NIC 7xxx expense code or 2xxx liability code?
  • deanshepherddeanshepherd Font Of All Knowledge Registered Posts: 1,809
    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.
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    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 LeggJo Legg Settling In Nicely Registered Posts: 20
    Good point, thanks!
  • MancunianMancunian Just Joined Registered Posts: 1
    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
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