I have taken over payroll for a restaurant and they pay all of their staff on the last working day of the month. Some of the staff are salaried which is fine and the rest are hourly paid. So basically the hourly paid staff will be paid by the hours they work, which varies each week, within a certain period but obviously this period never gets to the end of the month as the hours need to be processed prior to the end of the month. So generally they will be paid for the hours they work up to say between the 24th and 28th of the month and the following week is carried in to the next month. So are you still with me?? My question is what should happen at year end. For example the final pay day for the company this year would be on 31st March. I would need to process this payroll run around the 26th March to allow the time for a bank payment to clear by 31st. So the hourly staff cut off date will be Sunday 23rd March. Is it OK for 24th March onwards to be carried in to the next payroll year or should I do a final payroll run for the extra week? Is this even possible with the staff all paid monthly?
-- Edited by Chris1974 on Friday 14th of March 2014 01:50:11 AM
I would run it as normal -lots of companies have cut off dates for overtime etc-some even pay a month in arrears -the only thing that might be applicable is if the company has it's year end at the same time -you may need to calculate this as an accrual for them
