We have an employee that’s just started maternity leave. I’ve successfully posted the FPS and EPS to HMRC and now need to account for it in QuickFile.
I understand HMRC offset SMP against PAYE/NI, so my thought was to journal it by debiting 2211 (National Insurance) with the amount of SMP paid (with a corresponding credit to Net Wages), thus reducing the overall payment due to HMRC next quarter. I don’t know if that’s “correct”, but it at least balances.
However, what it doesn’t do is account for the 3% "SMP Compensation” amount of £15.05 that’s arisen in addition to the SMP paid out. I see it will also reduce the net payment due to HMRC, but I’m not sure where it slots into the accounts. Should I journal it with the associated payroll journal or separately? And which nominals to debit/credit? Where does 7011 SMP Reclaimed fit in?
I’ve asked our accountant (and will post the response if I get an answer, as it’ll surely be useful to others) but wondered if anyone else had already solved this? There doesn’t seem to be an entirely relevant answer already on the forum.