Hello, I hope someone will be able to help with two queries.
1.I have done the year end and issued P60. However, when starting reconciling Payroll, I noticed that there was a payment made to one of our employees but it did not get through sage payroll. I suspect, that my predecessor forgot to pay that person and just made a net payment and forgot to do a roll back on sage payroll and that is why I have a discrepancy. I checked, there was no payslip issued for this particular month it shows salary as 0. The net amount is £160.00 but if it was a salary payment the gross amount would be £200.00 which means £40.00 should be tax. This person is no longer working for us. P45 has been issued and I was wondering whether I should do a rollback for that particular month and make an extra payment to HMRC.
2.My second query. We had one lady that went on maternity leave. I was told that she started maternity after a normal monthly salary was paid. As maternity payment is lower than her salary there was an overpayment of £106.00, however, as it was our company mistake by informing me about maternity we decided to leave that money and did not claim the overpayment back. I did the rollback to amend the starting date of maternity but forgot to include that overpaid amount of £106.00. Hence, I have a discrepancy in sage, as my bank payments are higher than net payments. The amount is not eligible for tax as the salary is low and it is below the threshold for taxation. Therefore, as it has no impact on tax and it is not material, I was wondering whether I could transfer it to miscellaneous or I should do the rollback, add £106.00 and re-issue P60. However, my worry is, if I do a rollback and add £106.00, would this additional amount have an impact on maternity calculation? Or maybe it is better to keep this £106.00 on a balance sheet and add it to a normal salary once she is back from maternity.
All your responses are greatly appreciated. I do understand that I should have done a reconciliation first and then issue P60 and the year end, however, I made a mistake.
1) process using OT (week 1/month 1) code. Issue payslip or at very least a letter to ex member of staff for their tax records. See sage help for how to process or use contact sage if unsure (assuming you have cover if using their payroll)
2) can you rollback after you have completed the year end? Not all software will allow it. If not you may need to use the HMRC basic tools, but before you do, just clarify the actual terms of this payment. You say she went on maternity leave after normal salary, well what as the cut off for her salary/was she not entitled to the full salary. You need to double check this last payment v. ner contract v.her maternity cut off dates v any holidays she had left to take. You might find she wasn't overpaid at all. But if you have done it wrong you must correct it under RTI rules and correct it in the company accounts.
edited re typos
-- Edited by Cheshire on Sunday 17th of April 2016 11:36:46 PM
__________________
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
Thank you, Cheshire. Holiday has been taken into concideration, I have checked the dates re maternity, and as I have done a rollback and posted another journal i know that difference of £106.00. Will contact sage and hopefully will be able to roll back if not.... another headache how to sort it mannually...
