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• # 107305
• Thu 16 Apr 2015 10:43 AM

Hi

Please could somebody let me know if the jounal below is correct. I receive a payroll summary from my client's accountant and have to enter it into Sage. This month it includes SPP and also small employers relief which I have not dealt with before. I have not done the payroll exam yet and wanted to check that my journal entry was correct. All figures are purely fictional.

7000   Gross Wages        £5000   (Debit)

7006   Employer's NI        £150    (Debit)

2210   PAYE/NI                                        £410      (Credit)

2220   Nett Wages                                  £4740     (Credit)

7013   SPP Recovered                               £270     (Credit)

7014   NIC Compensation                             £8.10 (Credit)    3% of SPP

2210   PAYE/NI                 £278.10  (Debit)

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• # 107311
• Thu 16 Apr 2015 06:12 PM

Hi there,

It all looks ok to me.

Steve

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• # 107313
• Thu 16 Apr 2015 06:35 PM

Thankyou very much Steve

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• # 107321
• Fri 17 Apr 2015 10:37 AM

Catherine,

Why have you got two entries for PAYE/NI - one as a debit and one as a credit?  Is the £278.10 for the SPP?  If so then it needs to be put against a Statutory Paternity PAY expense nominal code in the 7000's range.

Also, I would enter the NIC compensation as a credit against employers NI nominal code.

Therefore the journal would look like:

Please feel free to e-mail me on bookkeeping@beckcottage.com if you would like me to go through this with you.

Kind regards

Debbie

• Debbie
  www.beckcottage.com
  
  

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• # 107340
• Sat 18 Apr 2015 09:16 AM

The Debit in the Paye/Ni nominal reduces the liability to Hmrc, so when the payment goes thro to Hmrc on the following 22nd of the month you are paying them less.

Steve

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• # 107350
• Sat 18 Apr 2015 04:36 PM

Thankyou Debbie for your response. As Steve has said I thought the debit to PAYE/NI would reduce the liability to HMRC by the amount of SPP & small employer's relief that you are claiming back.
I have used code 7013 for SPP recovered so could you explain please what code you would use for the SPP debit for £278.10 in your journal above.

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