Hi
I am currently entering wages onto the system and one of our employees was paid £192 holiday pay and £114.24 SSP. He is off long time sick and wished to use his holiday pay, hence the two payments.
I understand that you put the £114.24 SSP to 'Income Tax & NI Liability' and the £192 to Employee Costs, but when I add the Employer NI of £4.72 it doesn't quite add up. Employee Tax is £3.80 NI £3.39 totalling £7.19.
Can you please advise what I'm doing wrong.
Many thanks
Myra
Hi Myra,
My understanding is that statutory sick pay is simply paid to the employee in the normal way (ie. it is not withheld from the employee like PAYE and NI). Therefore you should allocate it to the Employee Costs account and not the Income Tax and NI Liability account.
From your figures I would create a Money Paid Out transaction with the Amount Paid set to £299.05 and with two lines in the Allocate To Account table:
1. Employee Costs: £310.96
2. Income Tax and NI Liability: -£11.91
Regards,
