RTI obligations and paying employees early

Paula Veysey Smith • 13 December 2014

Christmas is that one month of the year when payroll can come around early.  Most of your employees will love this until they realise that January is a very long month!!

But for employers there is that additional issue now to grapple with – how to handle an earlier pay date under RTI.

Simples…

Stick with one monthly payroll even if some of your employees don’t want to be paid earlier (they’ll be the ones looking smug at the end of January!) and follow these easy steps:

  1. Run the monthly payroll for all employees earlier in December than usual.If your employees have variable pay then make an agreement with them for December and adjust in January if needed.  For example, if a bonus is usually applied pay that to mid-month and then give the rest due in January; believe me, your employees will be grateful for that come the end of January.
  2. Submit the FPS for payroll on that early date, say, 20th December.
  3. You will then be clear to pay those employees who want their money early before Christmas, though be sure to fill the biscuit barrel up in the coffee room at the end of January as they may be going hungry
  4. Any employees wanting their usual pay date can then be paid at the end of the month.

RTI legislation stipulates that the returns must be made before any payments are made to employees.  By following the above steps you will keep both your staff and HMRC happy.  What better way is there to start your Christmas celebrations! …well, one suggestion, let M:Power handle your payroll so that next Christmas you don’t even have to worry about it at all, just let us do that!!

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