06 Nov PAYE & Paying your staff early at Christmas.
Paying your staff early at Christmas
Holidays are coming! What do you do if you want to report PAYE in real time when payments are made early at Christmas.
Back in In December 2018, HMRC wrote to employers to advise a temporary easement on reporting PAYE information in real time, as some employers like to pay their employees earlier than usual over the Christmas period.
Following feedback from employers the Department for Work and Pensions (DWP) will make this easement permanent.
If you do pay early over the Christmas period, you need to report your normal (or contractual) payday as the payment date on your Full Payment Submission (FPS) and ensure that the FPS is submitted on or before this date.
For example: if you pay on Friday 20 December 2019 but the normal/contractual payment date is Tuesday 31 December 2019, please report the payment date on the FPS as 31 December and ensure the submission is sent on or before 31 December.
Doing this will help to protect your employees’ eligibility for Universal Credit, as reporting the payday as the payment date may affect current and future entitlements.
The overriding PAYE reporting obligation for employers is unaffected by this announcement and remains that you must report payments on or before the date the employee is paid, i.e. payday.
EA Assist Outsourced Payroll
If you struggle with sorting PAYE for your staff and find it difficult to keep up to date with the changes in payroll filing and statutory requirements then please give us a call.
We can provide a bespoke payroll function tailored to suit you and your business. No more worrying about reporting to HMRC or how to calculate holiday or sick pay, we can do that all for you.
Find out more about our payroll service by visiting our website here or give us a call on 01379 646943 for a quote.