I had to do one of these today funnily enough and was probably going to ask the same question. Initially I was just going to post it to general expenses, let the accountant know and let her sort it out at year end. Obviously if someone else has experience of this and can let us both know that would be great
Thanks Phil....good thinking.....I think I will do that. Just wondered if there was any particular way to treat compensation payments to ex employees. My client's employee was an apprentice and there was some argument over when she left and she got the solicitor involved and my client had to end up paying her a compensation payment which didn't go through payroll.
You could call it ex-gratia payment. We got rid of a member of staff and paid them a one off fee. she was still in a probation period but wasn't suitable for the job.
