Double entry for SMP and HMRC rebate

Sarah-LouSarah-Lou Well-KnownRegistered Posts: 141
Have a lady gone on maternity leave and have never dealt with SMP before on sage!

Would it literally be;

DR SMP / CR Bank

Due to lack of NI/PAYE to HMRC we are going to be receiving funding in advance from HMRC would I CR the SMP code?

Have been through my payroll books and googled but can't find anything!

Thank you :001_smile:

Sarah-Lou

Comments

  • readerreader Experienced Mentor MAAT, AAT Licensed Accountant Posts: 1,038
    Sarah-Lou wrote: »
    Have a lady gone on maternity leave and have never dealt with SMP before on sage!

    Would it literally be;

    DR SMP / CR Bank

    Due to lack of NI/PAYE to HMRC we are going to be receiving funding in advance from HMRC would I CR the SMP code?

    Have been through my payroll books and googled but can't find anything!

    Thank you :001_smile:

    Sarah-Lou

    I think you should:

    1) DR Net wages control and CR Bank (because you're paying the employee their net wage)

    2) DR Bank and CR PAYE-NIC control (because the SMP recovered will settle the debtor in the PAYE-NIC control*)

    *I think there should be a debtor in this control account as SMP is due from HMRC.

    Net wages and PAYE-NIC control should be in the '2000' section of Sage.
  • readerreader Experienced Mentor MAAT, AAT Licensed Accountant Posts: 1,038
    The code for net wages control is apparently 2220 and the code for PAYE-NIC control is apparently 2210 (or 2211, depending on where you are posting the PAYE & NIC liability when you post the wages journal).
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