Is SMP recovered a reconciling item in a payroll reconciliation to an accounts package? As in the accounts the ledger is virtually zero. Do I have to add back on the smp recovered on the payroll reconciliation to make it right Or should it be at zero? Thank you
SMP recovered should be part of the payroll process (it is deducted from the amount of PAYE & NI to be paid to HMRC every month). There should also be an amount of NI compensation included. So yes, this should be part of the reconciliation process. When you say "the ledger" is virtually zero, which ledger are you talking about? If you mean the PAYE & NI Ctrl account, then if all the PAYE & NI has been paid to HMRC then this should be zero, not virtually zero.
The ledger is SMP recovered which is the actual paid SMP minus the 92 percent SMP recovered That is why the ledger is nearly at zero All I need to know is whether to add back the SMP recovered to my payroll reconciliation as a transaction on its own Or should it not be included at all? Thanks
Ah right, you are only claiming back 92% I would certainly include it in your reconciliation as a transaction on its own as it has been paid to an employee(s) and is part of payroll.
Thanks for that, but the control account is zero as this is what was sent to HMRC. I just need to know whether the SMP recovered should be taken off the payroll reconciliation Or should it be zero?
Right, well this is how your accounts should look:-
Gross wages (inc SMP Paid) Â (Expenses code)
Dr xxxxx
Er's NI Â (Expenses code)
Dr xxxxx
Pensions etc  (Expenses code)
Dr xxxxx
Net wages  (Balance sheet code)
Cr xxxxx
PAYE & NI Control  (Balance sheet code)
Cr xxxxx
SMP reclaimed  (Expenses code)
Cr xxxxx
NI compensation  (Expenses code)
Cr xxxxx
PAYE & NI Control (inc amount of SMP & NI reclaimed) Â (Balance sheet code)
Dr xxxxx
If all PAYE & NI has been paid to HMRC and all wages paid, all balance sheet codes should be zero. Â There should be balances in all the Expenses codes (including a credit balance in the SMP reclaimed code and the NI compensation code if you treat it this way...some people do it slightly differently) until the accounts are done at the year end and then the balances will be balanced off to the P & L account.
You don't need to "add anything back" or "take anything out", the balances are the balances. Â If you have a figure for SMP reclaimed in your reconciliation, you need to make sure that it matched the balances in your SMP reclaimed ledger account.
Please note that if keeping your job relies on this advice, then this is advice given in good faith, but is just advice and if you are unsure then it is best to seek the advice of a qualified accountant.
Edit: I'm not sure that any "Invoices" should be included in the "Payroll" figure. If these are invoices by self-employed or sub-contractors they really should be under a separate code under direct expenses as they cannot balance with the payroll figures as there will be no tax or ni to be included (unless you are deducting CIS tax).
2nd edit: sorry, don't know what all those A's are in the table!!
-- Edited by Stardoe on Tuesday 16th of April 2013 03:44:07 PM
-- Edited by Stardoe on Tuesday 16th of April 2013 03:45:04 PM
I don't even know how I got the A's in the first place Neil yet alone the squiggly line.....lol Might be something to do with the fact the data is inserted in a table? No idea
I thought that Pauline was turning Canadian (go on, go back and read all of those words with an A with a rising tone at the end and see what it sounds like, lol).
Sure its all down to this talk on the site yesterday started by Amanda about us rats abandoning the sinking ship... Oops, do you think that I should mention sinking ships!
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Lol.....very funny Shaun. Just noticed that there are a couple of A's in the body of the text as well. I did have a bit of trouble when I posted the entire thing and I'd saved it into Word first and then copied and pasted it back. I've seen other posts with these A's in as well.
What's this talk about rats and sinking ships? Must have missed that one!
it was in the Baroness Thatcher thread where Amanda was saying how tired she is with the UK and is encouraging her children to seek alterate countries as they get older.
The sinking ships comment just linked in the Belgrano thread.
Tut, it loses something when I explain it... Made me smile whilst I was writing it though and thought, Ooh, thats accidentally almost clever.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Definitely missed that one then. My middle daughter and her fiance are getting married in August and are talking about emigrating to New Zealand. I may go with them!
