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PigzleFly
June 18, 2019
Question

SMP Advance Funding

  • June 18, 2019
  • 1 reply
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A bit of help needed here for a small pub in North Devon. One of my staff is due to start maternity leave in a month or so. Since my PAYE and NI payments are quite small I have requested and received advance funding for the whole 39 weeks. Can someone advise me on how to account for this quite large sum of money?

1 reply

R
Ryan_M
June 18, 2019

Good day @PigzleFly,

 

I've got a couple of options that I can share to you, which allows you to account for the funds you've received.

  • You can run payroll for the employee in question that covers 39 weeks.
  • You can also create an expense for the payment. Then run payroll every week as normal, though you'll need to create a journal entry to offset the expense of the payroll.

It's best to consult your accountant to ensure that these transactions are recorded correctly. That way you won't have any issues with your books.

 

You can view this article to learn more about how to enter statutory maternity pay. It lists the figures you need before you proceed with calculating SMP, up until the point you record SMP in QuickBooks Online.

 

If there's anything else that I can assist you with, you can let me know by dropping a comment below.

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