If a company's payroll has a processing date of the 23rd January 2013, for which working days would this correspond to?
Looking at a calendar, would the 23rd be the date they are actually paid for the days they worked the week commencing 14th January-20th January? And the payroll processed on the 30th be for the week commencing the 21st January-27th January?
If so, if someone left on 22nd January and have been processed up to the 23rd, does this mean they will be due 2 days pay when I process the payroll on the 30th?
Not sure on the structure of the Co you do payroll for, but as an example, at the Co I work for people are paid in arrears and get paid 25th of each month and this relates to 1st month through to last calendar day. Therefore:
A colleague commencing work on 27th Mar, would not get paid until 25th Apr, this pay would contain salary from 27th Mar through to 30th Apr. On 25th May they would receive monies relating to 1st May through to 31st May. Obviously someone leaving on 28th of May would only get paid to 28th May (assuming the HR dept is on the ball and there's a one month notice period observed!).
It really depends on your client's process. I am guessing (and this is only using logic here!) that if you're on a weekly cycle, most businesses pay in arrears (would you pay someone before they'd done the work?), that payment into their bank on 23rd Jan would relate to 14-20th Jan (given that BACS takes 3 days).
I reckon logically (as I said), your pay reference dates are for work 14-20th Jan and the payment date is 3 days after, hence the next payment on 30th Jan would relate to the period 21-27 Jan, so yes they would be due two days pay for 21st and 22nd.
But can't reiterate enough that it's the company's process and I am making a logical assumption from the info you have given and the frequency of the payments.
But can't reiterate enough that it's the company's process
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Those are the key points. Every company is different. Only the company can answer questions about processing dates vs payment date vs dates worked. It is very dangerous to use any logic or assumptions to try to derive the relationships. For example I've seen companies who pay monthly workers on the 6th for work done from the 7th of the previous to the 6th, because that way they defer payments to HMRC by a month.
But can't reiterate enough that it's the company's process
<snip>
Those are the key points. Every company is different. Only the company can answer questions about processing dates vs payment date vs dates worked. It is very dangerous to use any logic or assumptions to try to derive the relationships. For example I've seen companies who pay monthly workers on the 6th for work done from the 7th of the previous to the 6th, because that way they defer payments to HMRC by a month.
The client says she processes the payroll on the 15th as this is how all school teachers are paid (she runs private childcare).
I could understand it if she processed the payroll using the last day of the month for work carried out for the whole of that calendar month. However processing the payroll on 15th of every month only gives her 4 days to pay the PAYE over to HMRC. And when she comes to process the payroll on the 15th April will the payroll system know that it should be processing 21 days using 2012-2013 tax codes and 10 days of April when the new tax codes will need to be used after year end?
I'm afraid that nearly every assumption you're making is wrong, and I'm a little concerned because this is very basic stuff for anyone running payroll.
Payments are due on the 19th for the previous PAYE month's deductions. So paying employees on the 15th you have about 34 days to settle, not 4.
And payments are never part-processed with different tax codes. For example, if you pay monthly on the 6th April then as far as HMRC is concerned the entire payment is processed as PAYE month 1, using PAYE month 1's tax codes and bands, and the PAYE/NI for that payment would be due to HMRC on 19th May. Just the same is if you made the same pay run on 5th May.
Here is some reading for you that helps with these issues, and many others that may come up...
Thanks for your replies. There is also a client of ours that does their own payroll and pays staff on the 15th of every month. This payment is for work done from the middle of January to the middle of February for example.
How would this work with year end? And RTI? When they have processed the payroll on 15th March what would the next date be for processing?
Thanks for your replies. There is also a client of ours that does their own payroll and pays staff on the 15th of every month. This payment is for work done from the middle of January to the middle of February for example.
How would this work with year end? And RTI? When they have processed the payroll on 15th March what would the next date be for processing?
I believe that you are overthinking the entire dates issue. Just let the software do the work.
Why do you think the answer to your question would be different to the answer for any other client who pays on any other day of the month? Is there something special about the 15th?
As to RTI, to repeat. File RTI before employees are paid. That's it.
The client says she processes the payroll on the 15th as this is how all school teachers are paid (she runs private childcare).
I could understand it if she processed the payroll using the last day of the month for work carried out for the whole of that calendar month. However processing the payroll on 15th of every month only gives her 4 days to pay the PAYE over to HMRC. And when she comes to process the payroll on the 15th April will the payroll system know that it should be processing 21 days using 2012-2013 tax codes and 10 days of April when the new tax codes will need to be used after year end?
The client says she processes the payroll on the 15th as this is how all school teachers are paid (she runs private childcare).
I could understand it if she processed the payroll using the last day of the month for work carried out for the whole of that calendar month. However processing the payroll on 15th of every month only gives her 4 days to pay the PAYE over to HMRC. And when she comes to process the payroll on the 15th April will the payroll system know that it should be processing 21 days using 2012-2013 tax codes and 10 days of April when the new tax codes will need to be used after year end?
I'm afraid that nearly every assumption you're making is wrong, and I'm a little concerned because this is very basic stuff for anyone running payroll.
Payments are due on the 19th for the previous PAYE month's deductions. So paying employees on the 15th you have about 34 days to settle, not 4.
-- Edited by Tom McClelland on Friday 8th of February 2013 10:50:21 AM
I understand now. So as the client runs her payroll to the 15th, say 15th February, this falls into the payroll month 6th February - 5th March so is due on 19th March. Basically deferring the payment by two weeks.
