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Post Info TOPIC: How to change wages for National Minimum Wage increase
Cheshire


Master Book-keeper

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How to change wages for National Minimum Wage increase
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Hi 

Im new to using both 12Pay and Moneysoft and look after a couple of companies who pay their staff minimum wage.  With the increase due on 1 October I wondered how to process the rise (in both of these payroll softwares) given the 1st is mid week/mid month and I do not know what hours before or after the 1st they will have worked - I just get the total hours.

Help please.hmm



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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
Don Tax


Expert

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Hi Joanne,

I'm pretty sure the rules are drafted especially to avoid this problem -- the NMW applies to the pay period starting after 1st October.  EG. Weekly paid ones the increased NMW would apply to earnings from Sunday 6th.   Just process the hours in 12Pay and Moneysoft as usual from then on.

Tried to find a link but failed miserably.

Tim

 

 

 

 



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Tom McClelland


Senior Member

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I believe Don is correct (though I also don't have a link to hand). The rules don't require you to adjust pay to reflect NMW in the middle of a pay period. As you don't have the daily breakdown you can't do it anyway, even if you wanted to.

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Life's a reach, then you gybe

 
Cheshire


Master Book-keeper

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Posts: 8646
Date:
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Thank you both - that certainly makes sense (although thats not always the case with the rule makers!)

__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
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