I'm currently running a payroll and hourly staff are paid on 25th for hours worked from 16th to 15th the previous month. Salaried staff are paid on the 25th for the whole month.
What would be the easiest way to streamline this? My previous workplace was worked a month in hand. I.e. 1st to 31st Oct would be paid on 28th November.
Hi Matt
If this is for a client, then it's up to whatever contract they have in place with their staff a to how this will work. They may not have written contracts, in which case the history of their payroll service will determine how it works under 'custom and practice'.
When I worked for the Bank our payday was 18th of each month and we were paid two weeks in arrears and two weeks in advance. I have a customer who pays their staff weekly, one week in arrears.
I would be asking the question of the company.
__________________
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
Thanks for the reply Jo. The company have asked me to suggest new dates. They want the hourly paid to match the salaried in terms of what period is covered.
Just leaving now for a LONG day, so quick response. Care - same issue as one Ive responded to recently in terms of changing salaried to hourly - need agreement of staff, unless of course the employer is making up the shortfall in wages that may be incurred in moving dates.
Hi Matt
Probably the easiest way - for you I mean - would be to change the salaried staff so that they are paid up to 15th of each month as the hourly staff are - this then gives you 10 days between cut off and the payday to calculate any pay and complete adjustments for leavers etc and of course the RTI.
This does however present several issues.
- You need the agreement of ALL staff affected! Only problem with that is you need 100% agreement or you will be stuck with one or two stragglers that you are still processing in the old way. NB -this is a change on contract for the staff and could lead to the issues per my other thread
- The main problem is likely to be form salaried staff, as I hinted at earlier who now, for example, would get paid from say 25 December to 15 January on 25 January - ie 10 days less pay than they would be expecting! One way to help them over that hurdle would be to offer a bonus for agreeing to the change.
- Your PII probably doesnt cover you for this sort of advice - you need to point the owners towards either ACAS (free advice) or an Employment Lawyer to get this resolved properly.
Sorry it wasnt better news!!!!
__________________
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
