Hi
I have an employee who started in November 2014 and gave us a p45 with a week 1 1000L code on it. After a couple of weeks I received a P6 showing a cumulative 1000L code to be used, which I changed in my payroll software. However, I stupidly failed to include the YTD figures also on the P6. The employee has therefore been overpaid each week since then.
How should I correct this is in my payroll/next FPS? Do I go back and add the P6 YTD figures to the week in November it should've been added? Or do I add the P6 YTD figures to the current weeks pay?
Thanks.
Replies (2)
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Add the P6 ytd figures now...
What you need to be ready for is that the employee may get negative net pay as a result, which would have to be repaid by the employee or carried over as a future period attachment to earnings. If the employee can't afford to take nothing home next period you might need to consider a company loan to them (in the interests of workplace harmony) but you should be formally clear that any such loan must be repaid or it risks being treated as a net wages payment, to be grossed up.
Agree with Tom
This is your mess, even though it's the employee's tax bill and you need to help him out to clear this debt.