I'm just sorting out payroll journals, and on the payroll summaries is a column headed NI Check. Has anyone seen this and know what it is (i've never seen it before)? How do I allocate it in a journal?
The total amount of the SMP will be included in the gross wages and tax and ni on it will be included in the PAYE ctrl as you would do the normal wages. If they are a small employer and are able to reclaim the SMP and compensation on the NI then I would credit SMP reclaimed and credit NI compensation. A full journal would be as follows:-
DR Gross wages (inc the SMP) DR Employer's NI CR Net wages CR PAYE & NI Ctrol DR PAYE & NI Ctrol (with the SMP amount) CR SMP Reclaimed CR NIC Compensation
Taking Sage's codes for the above 7000 - Gross wages 7006 - Employer's NI 2220 - Net wages 2210 - PAYE & NI Ctrol 7011 - SMP Reclaimed 7012 - NI Compensation
Hope this helps Pauline
Edit: If you wanted, you could create a separate code to separate out the SMP from the Gross wages.
-- Edited by Stardoe on Monday 16th of July 2012 09:59:28 PM
I am using quickbooks and need to create my own ledgers in the COA for these - I take it SMP reclaimed and NI Compensation would go as current Liabilities?
I would put SMP reclaimed and NI comp in expenses, but as a credit entry....putting them as a current liability assumes that you should be paying them, when in fact you are getting them back...so you could put them as current assets I suppose, but I have put them in the expenses in the wages range.
Just doing a journal for SMP would be:-
DR Gross pay (SMP) DR Er's NI CR PAYE & NI Ctrl CR Net pay
DR PAYE & NI Ctrl CR SMP Reclaimed CR NI compensation
