How should I treat the SMP in my monthly journal?

Question

Our company paid a certain amount to an employee as a Statutory Maternity Pay which has been adjusted in the gross and net pay. But on P32 An amount which is the 92% of the total SMP is deducted from the total NI. I am not sure how should I treat that SMP in my monthly journal. Should that be treated as a liability or transfered to P/L account?

Can anyone help please?

Thanks!!

Answer 1

SMP is no different to normal pay, so treat it the same...

Answer 2

see this for a complete guide to a sick employee http://www.hmrc.gov.uk/employers/employe...