I have a client who employs one member of staff who is on an hourly rate and paid weekly. Her hours vary considerably throughout the year and she accrues her holiday so that she can have a month off in Winter (the business is seasonal). On the week she left to go on holiday my client paid her the wages for the week plus accrued holiday based on 12.07% of total hours worked since April. Whilst she has been away (out of the country) he has not been doing a pay run as she is his only employee. On the weeks she has not been earning, she will have become entitled to a tax rebate. Should I advise him to run the payroll for each week she has been away then add up the amount of tax due back to her over the weeks she has been gone and pay it along with her first weeks's wages? I would have thought he should have been running the payroll each week she has been away and paying her the amounts due back to her, unfortunatley he hasn't been doing this.
No need Kat. The refund will be incorporated into the deductions when the employee returns. As likely as not, a reduction in tax payable as an actual refund due to further earned income on the pay date.
I don't think this employee would be considered 'irregular' with regard to RTI settings.
Thanks for the quick reply, yes that does make sense. I'm not sure what he is doing wrong, he is using Sage Instant Payroll (I think) and I don't usually do his payroll but he had asked me for advice because the package wouldn't let him change the pay date from the last time he ran the payroll. He did tell me the error message he was getting but I can't remember now. I assumed it was because he should have been running the payroll each week she was away. He did say that is he tries to run it with zero pay for the first week she was away the payslip shows she is entitled to a rebate of around £30 (I think). I'll get back to him and try to figure out what the problem is.
On sage instants there is a tick box named "do not pay this employee", if he ticks that for each week that she isn't there and finalises each week it will re-calculate tax and NI when he starts paying her again, (I think).
