I have recently had a client that gives me her team's timesheets right at the end of the last day of the month leaving me very little time to get the payroll done. I've decided this needs to change! The problem is that she wants to include the hours they work right up to the end of the month and not pay them if they are sick etc. How do you treat that situation?
I have another client that pays overtime so there is a similar situation in that although their monthly salary can be processed in advance, any overtime isn't known until the end of the month. I'm thinking a cut off of a certain day of the month and any hours/overtime worked after that date is paid in the following month. I seem to remember larger companies I've worked for in the past doing that but that was before RTI. Is that allowed these days? How else can I managed it when I don't always want to leave things till the last minute.
Hi Princess
Oh an awkward one. Whenever I take on newbies I always stress the need for cut off dates - helps to manage the workflow.
But with existing payroll clients who have always done things in a certain manner its more problematic. Effectively if you were to introduce changes for cut offs then you are introducing a change in their agreements with staff, effectively a change in contract. Its do-able but ALL staff would have to be advised of the changes/given notice as to when it will take effect and actually agree to the changes, otherwise its a no go. Have a look at the ACAS website or give them a call - all for free - they can assist in the issues surrounding this one and help you to manage any change. Plus what you might need to do to sweeten the pill so to speak!
Where I worked in the past they paid base pay two weeks in advance and two weeks in arrears, cut off for overtime was month end, payroll 18th - reckon only some of the bigger organisations do that now and most smaller companies and certainly micro entities staff are paid in arrears.
I usually suggest a cut off of a week before for actual calculations, with a day or two added on to get the information to me - which should give me about 4-5 days to produce the payroll. Means Im not tied to my PC when I dont want to be.
HTH
__________________
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
Woah Princess - you cant just change staff contracts like that - you need to go through a set process, give notice and get agreement, as I indicated. I would go back to your client and discuss the process (after getting some input from ACAS or their existing legal/HR bods) otherwise you might end up on the wrong side of a lawsuit as they get one from a disgruntled employee.
__________________
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
