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.
- Start-up cost recognition 65 1
- SA316s 43 1
- Lunches 95 3
- Mortgage Adviser's request 346 8
- VAT on non-denominated postage 107 3
- Generic notification message 245 6
- Property Expenses 199 7
- Is cloud accounting software all just pie in the sky 685 21
- Where do Balance Sheet Gains get recognised in CT600? 797 39
- Auto Enrolment (sorry) 74 1
- Tax relief for networking day out? 486 13
- Swiching tax 487 14
- Accrued salary unpaid 239 4
- P60 from HMRC Basic Paye Tools 4,169 18
- Basis periods 80 1
- P&L Treatment of property assets 94 2
- CGT on spouse's death 297 11
- Starting Again 306 11
- CT101 Completion 137 1
- Non resident pension withdrawal 154 2
- Construction CIS LLP Company 597
- Services via intermediaries and new HMRC reporting requirements 584
- LIVE: Budget aftermath webinar 384
- Pensions Regulator 349
- NIC contribution on unremitted income 287
- Using the correct forms 263
- SA penalty proposals 254
- RTI - duplicate employee record 246
- Accelerated payment notices 230
- How hard is it to reduce a code? 222