I need a little help with Payroll on QB. I do the payroll once a month at someones premises, they have someone who during October will be on Jury Service for 2 weeks (10 working days), how would I enter this on the Payroll??? Basically he is not being paid by the company for the 2 weeks he will not be there.
Do I calculate what Pay he will be loosing and then deduct this from the monthly salary and change the figure manually in QB?? I have never come across this before so would appreciate any help.
Dont know if you've alraedy seen this but found it on HMRC website, which gives you three options
A quick read through, seems to suggest calculating the salary on what has been paid to the employee eg normal salary less 10 days less PAYE deductions on new pay amount.
I've been out all morning so hadn't had chance to look it up on HMRC, I have had a look now, still not sure. He is getting paid nothing by the employer, and I believe that the courts are paying him £30 per day expenses, I think these are being paid direct to him. Do I have to calculate this as well in his Pay for Oct? Sorry I am alittle confused (doesn't take alot on a monday!)
My take on this is that you need do no more than pay him as normal less the 10 days.
This is from the article
You can disregard the court's loss of earnings payment for PAYE tax and NICs purposes, because it counts as compensation, not earnings from their employment with you. But if you decide to top up the allowance so the employee will still take home their usual amount of earnings, you will have to calculate PAYE tax and NICs on your top-up payment as described below.
It only gets slightly difficult if the employee goes for a loss of earnings over and above but again my understanding is that it will still be as above.
If the employer wants to top up the difference, so the employee still gets the same income, the court payment is deducted from what is the normal take home pay and grossed up.
In this case the employer isn't paying anymore.
HTH Bill
-- Edited by Wella on Monday 11th of October 2010 01:57:00 PM
I get it now, the employer in this case is not going to be topping up his £30 expenses, they are just simply not paying him at all for the days that he is not working. So the £30 per day expenses are paid direct to the employee so I don't have to take any of that in to consideration when calculating his monthly pay for October? Is that correct now?
