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Post Info TOPIC: Error in gross pay
Bucks Bodger


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Error in gross pay
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Hi

 

An employee has asked me this question, I think I know the answer but I am hoping

for a better outcome.

They have been earning £390.00 per month up to December 2014, then from

January 2015 their gross pay rose to £780.00 per month. However, the employer forgot to

amend the payroll, so they were not paid the increase until March, so their March salary

is £780.00 + £390 (January), + £390.00 (February), making a gross pay fro March of £1,560.00.

They are on a BR tax code, so no problem there. However, as they have received such a large sum

in March, they are having to pay NI of £107.64 for the month, whereas had the increases been paid at the

correct time they would only have paid about £14.04 per month. Is there any way this can be adjusted so that

the employee doesn't lose out due to the employers error ?



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Eunice Cubbage
Don Tax


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Hi Bucks, I think you know the answer :/



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Don Tax


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Which system is this payroll on Eunice. I've done a Basic Tools one recently if thats any help.

 

best wishes, Tim



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FoxAccountancyServices


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Yes, get the employer to suffer the NIC by increasing the net pay (or given them a separate cheque/cash).

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Bucks Bodger


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Thanks for the responses, I guess I knew the answer myself, just wanted someone to come
up with an alternative solution!

Michelle, I did suggest that, but the employee works for a very small charity and feels she can't
ask them to cough up!

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Eunice Cubbage
FoxAccountancyServices


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You could always ring HMRC - if you are using Basic Tools, they can walk you through restoring an old back up (one taken just after the last correct process) and running the periods again.. bear in mind you would have to post each and every wage again (but just not file them again) right up to date. That might be more hassle than its worth.. and so getting the charity to give her the money (assuming its their mistake and not hers) is the easiest and cheapest route as far as time is concerned. Theres room for messing it all up with the restore route as well.. you/she would need to know what you are doing, if you dare go there.

If you are not using basic tools, you would have to ring your software provider to try and do the same thing.



-- Edited by FoxAccountancyServices on Wednesday 18th of March 2015 09:31:48 PM

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