Payroll procesing date when paying in arrears

Hi everyone

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:

  1. 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
  2. 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.

So Sosldkmlkmlk

 

Comments
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One of my clients is a local

alattax |

Thank you ofr such prompt

Andrew40 |

Don't split

petersaxton |
petersaxton's picture

I have used Sage previously

alattax |

Thanks Peter. I didn't mean

Andrew40 |

Accrual

petersaxton |
petersaxton's picture

Sorry! I don't agree

Euan MacLennan |
Euan MacLennan's picture

It all has to be done on date paid

Chris Smail |
Chris Smail's picture

Sorry I don't agree with Euan

petersaxton |
petersaxton's picture

Euan and Peter,

Andrew40 |

I think you are missing the point

Euan MacLennan |
Euan MacLennan's picture

Payment date

petersaxton |
petersaxton's picture

Accruals concept

petersaxton |
petersaxton's picture

Ah well, it looks like my

alattax |

So it looks like we have 2

Andrew40 |