We are due to bring our payroll process in house for the new tax year however we are left somewhat confused to how our Accountants are currently processing the weekly wages.
Previously we use to provide the hours for Week 1 (Mon-Fri) to our Accountant on the following Monday morning (Week 2) and then pay our staff on the Friday (Week 2). For some reason, we were told this had to change once RTI came into play and we now have to provide the hours for Week 1, on the Thursday/Friday of Week 1, to be processed the Friday of Week 1 but still paid on Friday Week 2. So we are in affect 'guessing' the hours for the week (as we haven't received the timesheets at this point), plus or minus any fluctuations that have arisen in the week before which weren't picked up in the prior weeks payroll.
For example, say Week 1 Richard worked 43 hours, but his standard hours are 45 hours and we reported and paid 45 hours, we would then adjust this on the Week 2 report.
Week 1 paid and reported - assumed normal 45 hours
Week 1 Timesheet - 43 hours
Week 2 - assumed normal hours 45 less week 1 overpayment of 2 hours = 43 hours
It's an ongoing headache which I just don't believe is necessary.
When we take over the payroll is there any reason that we can't process Week 1 payroll on Monday of Week 2 and pay on Friday Week 2, providing the FPS payment date is before Friday Week 2 surely we have met the requirements to file on time?
Many thanks for you help,