Payroll procesing date when paying in arrears
I was searching all over the net trying to find info what date should I use in our Sage Payroll but coud not find an answer and will very much appreciate if anyone could help me with this please. I spend many many hours of searching different sites and forums and still am not sure how to do it right. PLEASE HELP.
We're a small business (registered as a self-employed, and not a ltd yet) and operating as a domestic service provider. We pay our employees on a weekly basis, but 1 week in arrears, normally on Friday next week. It is rather inconvenient to use a tax week, which will change the paydate every year, so we would like to stick to Friday. I am using both Sage Instant Accounts and Sage50 Payroll for our accounting. Our tax year end date is 31 March. Payroll tax year end is 05 Aprill for all employers. The work week is Mon - Sun (we provide service on Sundays ocasionally upon request).
I am confused about the payroll processing date, which must be set in Sage when processing payroll: should it be the date of Sunday of the week I am paying for, OR the date of the following Friday I am paying wages on. (i.e work dates 1 to 7, paydate - Fri, 12). Until now I always was using the actual date of the payroll processing - (FRI), but the problem is that the journals are also posted to Sage Accounts automatically with that date, which distorts the cost in the Accounts for the current tax year. So, on Friday, 30 Mar 2012 (which falls into tax week 52) we paid for the week ending Sunday 25/03/2012. The processing date was set to 30/03/2012. Sage payroll posted journals with the same date - 30/03/2012. Our financial year end was Sat 31/03/2012.
Now, next payroll processing date should be Friday, 06 April 2012 (which is a new tax year for the payroll [tw-01] and is in our new financial tax year), but it is going to be for the week ending 31 Mar 2012.
The question is:
- What date indeed should be used in Sage Payroll when processing the payroll: actual date or the last date of the week the payroll is calculated???, or
- shall we use the actual processing date in sage payroll, but post journals manualy into Sage Accounts with the date of the last day of the week pay was calculated? ( i.e.: processing payroll on Friday 06 Apr 2012, but posting into Sage Accounts as Saturday 31 March 2012 because it is actually for the week ending 31 March 2012)???????
I REALLY HOPE THERE IS SOMEONE WHO CAN INDEED SHED SOME LIGHT ON THIS ISSUE. THANK YOU VERY VERY MUCH IN ADVANCE.
- Commission on holiday accrual 62 1
- error on companies house accounts 108 4
- Newly Started Practice 176 5
- Practice Company Secretarial Software recommendations please 155 2
- Sole trader startup losses and PAYE income in same year 182 4
- HMRC computer behind the times 187 3
- problems getting through to the ACCA technical helpline 84 2
- Benefit in kind calc, s.160 ITEPA 92 1
- Who's going to the next Tick & Bash? 346 6
- Is a property owner charging a peppercorn rent to a limited company acceptable 225 6
- Overtime etc for PT employees 168 2
- Generic Notification Notices 123 1
- ACCA, ACPA, IFA, ICPA 445 5
- Anti- Money Laundering - CIMA Practising Certification Application 113 1
- How do you get HMRC to refund overpaid PAYE and NIC 435 5
- RTI lost some data on laptop packing up!! 91 1
- Bank Requesting clients' tax residence 243 4
- Does This Company Need To File A Tax Return 144 1
- fraud 416 1
- Optimum salary for directors appointed part way through the year 240 3
- QROP pension input amounts 475
- HMRC BENCHMARK EXPENSES 439
- write off loan or loan to equity swap or both 416
- Sole trade business in UK, but the owner works from EU 266
- EPS and CIS deductions 260
- Construction CIS LLP Company 246
- Stamp duty on house transfer between spouses 213
- SAGE winforecast 179
- LIVE: Budget aftermath webinar 173
- Managing deliberate defaulters hmrc 166