SMP Calculations in quickbooks

[AnnaF]

Hello All

Wonder if anyone can help me with this, as I am not sure if it is the software or me.

I have entered SMP in payroll for someone just starting their maternity leave. We are paying 90% of wages for first 6 weeks. I think that the statutory amount of £117 is included in this figure. Quickbooks seems to make the correct calculation on the payslip.

But on the company liabilities to HMRC I thought it would show a credit of 90% of the £117 as a reclaim against the company tax liability. However it seems to be showing a recalim of 90% of the total paid - I don't think this is correct and I don't want to mess up the company tax liability.

Can anyone advise.

Thank you in advance
AnnaF

 

[David Griffiths]

But the statutory figure for the first six weeks is 90% of salary, so you're not paying anything extra, and the full amount is recoverable.

 

[AnnaF]

Hi David

Thank you - Somehow I thought the employer made up the bit between the £117 and the 90% of salary.

Thank you again.
AnnaF

 

[Tom McClelland]

But on the company liabilities to HMRC I thought it would show a credit of 90% of the £117 as a reclaim against the company tax liability. However it seems to be showing a recalim of 90% of the total paid - I don't think this is correct and I don't want to mess up the company tax liability.

This doesn't sound quite right to me but maybe I'm misunderstanding. The SMP recovery is either 92% of the total paid if you're a large company, or 104.5% of the total paid if you're a small company. (from memory, a small company is one whose total NI contributions in the previous year were less than £45,000, or some rule like that). I'm only a payroll guy and usually an accountant will be along to correct me in a minute in these situations.

 

[AnnaF]

Hi Tom

thanks for that I will check it out when I am back at the client site end of this week. I will how much Ni contributions they have paid.

AnnaF