Can someone explain the advantages/disadvantages between using the pay periods of 6th - 5th of the following month and 1st - 31st of each month? I ask because currently I do the payroll for a company and their pay period runs from the 6th- round to the 5th of the following month and they pay their staff on the 5th. It hasn't caused me any problems ..... But, I am taking on a payroll from April for a new client and he wants to pay monthly. He previously paid his staff weekly but wasnt very good at it , hence me! So which pay dates should I use?
Best wishes
Georgie
P.S I know it's Friday night but hoping someone will see this!
The two dates you suggest make almost no difference which you chose. Employees tend to find 1-31 easier to understand, I guess.
The most advantageous from cashflow point of view is monthly payment on the 6th, because this defers PAYE payment to HMRC by a month compared with monthly payment on the 5th.
OK, in April then starting from 6th of April assuming I use 1-31 would the first pay period be from 6th to 30 April so they would get get 3 weeks pay for the first month?
OK, in April then starting from 6th of April assuming I use 1-31 would the first pay period be from 6th to 30 April so they would get get 3 weeks pay for the first month?
Best wishes Georgie
It would depend on when their final weekly payment took them up to, which could be anywhere from 30th March to 5th April. You'd pay them from the following day to the 30th April.
