We have a client who pays their staff weekly in arrears, so they work up to Sunday and get paid the following Friday. For example, the staff work Week 1, and get paid in Week 2. So initially we were running the payroll dated Week 1, because that's when the work was done, and then things like SSP and SMP would be correct (I think).
However, it now looks like this is wrong, because we started getting slaps on the wrist from HMRC for the RTI being late. Moneysoft advised us to miss a week so the wages fell into the week they were paid.
So my question is: should we be running the payroll as at payment date rather than the date the pay accrued? And does that mean that things like SSP calculations will be wrong? I sort of want there to be a period end date for the week worked, and a different payment date when the actual payment was made, but Moneysoft doesn't seem to have that option. Maybe I'm barking up the wrong tree!
Yep as Moneysoft probably intimated, you should be running the payroll for the payment date.
The new tax year might be a good time to change the settings although there may be an issue with employees not receiving the monies they were expecting.
Anyway, just wondering if you've been to Calendar - Settings and looked at the last box for SSP Offset and have a read of the F1 key guidance. In a similar situation to yours, I have mine set at 7 days. Therefore, if I get a doctors note to say the 20th - the SSP is payable on 27th.
I'll mention in passing that as with a lot of RTI issues, it's far better to pay less often where at all possible. At less than 10 employees, the lateness factor shouldn't result in a penalty for two years yet.
You should not need to miss a week. If the pay week ends on a Sunday then the last week for this year ended on the 30th March and you will be paying them on 5th April. Week 1 2014 will end on 6th April and if you use Friday11th April as the pay date and submission date you should be back on track.
