Employee received £120 a week paid on a monthly basis. Moneysoft has calculated £124.62 because the employee was paid £600 in December (5 weeks) and £480 in January (4 weeks) so am I ok to ignore that and overwrite the average weekly rate at £125.28 (being the new NLW at 16 hours) or should I pay the employee £130.10 which is the effective NLW payment based on £124.62?
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Oh the joys of supposed weekly but actually monthly ish.
Think if you edit one you might end up doing it all along. Need to ponder when brain if firing on all cylinders. What does the gov.uk calculator show put of interest?
What is in the employment contract re the wage and timing of payments? Ie was monthly thing done for ease under RTI or fully documented?
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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
Have you spoken to MS? Just thinking that this is an issue for the software when Statutory increases have occurred. Might be a workaround, rather than get your calculator out type manual intervention?
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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
Originally it was just a Director payroll, then he employed his wife on 8 hours a week but to be paid monthly, at the same time as his salary. Then his daughter took over on 16 hours a week (well over a year ago so wasn't done for SMP purposes) and paid monthly. All I've done is work out whether it was a 5 week month or a 4 week month. Government calculator agrees with Moneysoft. Contract says 16 hours a week but paid monthly.
I did speak to MS but it was before I'd rolled the year over and it hadn't calculated the amount, showing a 2017-18 rate of £140.98. I think I then confused him by asking a slightly different question (NLW) and he said it should be £140.98. However I think that was more down to me asking in the wrong way than him giving a false answer.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Lol, you knew I was going to ask didn't you! (not done for SMP purposes)
Ah, now if the contract said she worked 16hours per week, but got paid monthly then surely her wages should been calculated to a fixed monthly salary? Then the average prior weeks wouldn't be an issue, although I'm suing the min wage thing would've been? Not got my maths brain, nor a calculator on me and not in front of MS!
Im thinking, re-work based on increase in min wage and do from that. Even though she is family, better to err on side of caution than risk a claim (especially with maternity). I have a naff naff gov.uk link I can let you have although I've not gone into the technical guidance (sorry, feet up on settee and on my iPad and too much like hard work!)
When is it due? I could always email them if you like, but it would be over the weekend.
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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
First part covers it, I reckon. https://www.gov.uk/guidance/statutory-maternity-pay-employee-circumstances-that-affect-payment#employee-earnings-affected-by-a-pay-rise
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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
Lol, you knew I was going to ask didn't you! (not done for SMP purposes)
When is it due? I could always email them if you like, but it would be over the weekend.
LOL As soon as I wrote it I realised that.
1st payment due on 28th April but I need to get the refund claim in immediately. I'm going to stick with the payment MS says and recalculate for NLW.
It's my fault for not doing it on a 52 week /12 in the first place, and I think when she comes back to work I'll do it that way, as I agree with you that would have been a more accurate way.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
