I hope someone can help me to de-fuzz my brain! I've just started to work part time for a small charity who employ around 15 part time staff.
They are hourly paid on a monthly basis on the last Thursday of every month and standard practice at the moment is for us to estimate their hours for the last working week, so for example, this month we are gathering time sheets and calculating wages tomorrow, and they will be paid on Thursday. We include an estimation of next weeks pay also in our calculations, then adjust next month for any differences.
I'm thinking this is a very time consuming way to calculate the wages but, as I have zero wages experience, I don't know whether this is "correct" or not.
Another question I have is with regards to Holiday pay. Standard practice in this company seems to be for any holidays not taken in the holiday year to be paid in March (end of the holiday year). This is contrary to anything I have ever seen or been told before and I wonder if it is legal?
Hi Flier. I had a non-profit organisation who did 'predictive payroll' so perhaps it is common in that sector. From memory I approached the Trustee's to re-consider this timing but nothing came of it.
It's for them to decide if this is correct procedure or not but it doesn't seem a good use of their money (to be paying you unnecessary time). Perhaps you may be luckier than me by broaching the subject, but have a good estimate of the costs saved by paying wages after they are earned instead of this time consuming...... erm timing.
Similar with Holiday Pay. They are not obliged under the PAYE regulations to pay for holidays not taken but I can understand it might be risking employee unrest if they were not to do so. I very much doubt if it is illegal to pay it in the final month of the holiday period, if that is March.
Thanks so much for your reply Tim. I may just approach the board as you suggest, but I need to know how it "should" be done, and I don't have that knowledge, unfortunately. However, I'm so glad that someone here knows what I mean, Ha.
