Can you please tell me how to account for on Sage for a compensation for 'trouble and upset' which business paid to an employee.
It was paid following stress which the employee had gone through (for over 2 months) following a very badly performed transfer of the employee from a liquidated company to the undertaking the business company. It involved many payroll errors, loads of wrong information given by the employer,...the list of the things which the employer has done very poorly and incorrectly, with lack of professional attitude is very long...The employee was very stressed and ended up on sick leave. The employer paid some cash compensation for that distress to the employee.
Can you please tell me how to account for the payment on Sage?
Could you also confirm if the compensation needs to be reported to HMRC?
I've never dealt with compensation payments before.
Thank you in advance for your help.