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.
- Childcare vouchers 352 8
- Is this a qualifying loan for interest deductions? 42 2
- New Enterprise Allowance 54 1
- VAT Notice 700/64 - claiming VAT on motor repairs 46 1
- two business from one premises 173 3
- VAT transfer on going concern on incorporation 38 1
- SELLING A PROPERTY at LOSS/PROFIT - CAP GAINS ALLOWANCE 239 4
- HMRC property income enquiry 389 9
- 10 Worst xmas presents for an accountant 318 4
- Merry Christmas 101 2
- THEATRE SHOW - HIRE - VAT PAYABLE ON TICKET SALES 77 3
- New Incorporations - ERTNAC hoax - anyone else seen this? 1,076 12
- Anyone else still working this week? 414 13
- LTD home office - would HMRC seek to disallow 1,425 9
- Using home as clients registered address 148 3
- Client being taken to court and really do not know what to do 539 12
- Section 165 TCGA 1992 - time limit? 114 2
- How much does the company pay 721 30
- AIA 292 18
- Van Benefit in Kind Query 183 5
- Accounting referance change & deficient accounts. 506
- corporate hierarchy 470
- Advice - 325
- Anyone had HMRC refusing to act on EPS database glitch? 274
- WWOOFers 265
- The booking.com con 248
- Art Gallery - Splitting a property between business and personal use 243
- Cocaine anyone? 230
- Tax liabilities in USA for warehoused products 218
- UK State pension paid in NZ 177