Here's one I'm sure Euan can help with!
Before RTI our staff, were paid much earlier in December to help with Christmas costs. Some of them want that this year too but I have told the powers that be that I can only run one payroll on one date which means we are all being paid early (not something everyone wants) or, alternatively, we could give pay advances (or loans) as this is an exception and won't be repeated until next Chistmas time.
I am confident that this would be ok but would appreciate feedback.
Replies (11)
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Monthly Payroll
But you can process monthly payroll at any point during that tax month.
I don't think there is anything stopping you doing multiple processes.
Only one processing of mthly payroll
As you can only file 1 FPS for each payroll I can't see why Stratty is saying you can process multiple times.
I am really nervous about advances of pay, as HMRC have told me they should be shown on an FPS before being paid, which defeats the object of the exercise.
Multiple submissions
I know I can process at any time Stratty but I can't run one monthly payroll over several different dates; that is a major factor of RTI.
The answer of dating everything earlier and paying some later is the most practical answer, but this bit isn't true. You can run a company's payroll 31 days of the month if you want, as long as you send each FPS in time.
There might be software restrictions that make this impossible for you but the RTI rules don't specify how many submissions or dates your payments are spread over, just that each payment has an accompanying, correct FPS that is filed on or before the payment date. Obviously, most small payrolls will only have one FPS containing all employees for a tax period but that's not the only way it can be done.
No problem (maybe)
I don't think you have a problem. I don't get involved much with payroll myself, but you have to do your FPS before paying the staff, so could you not run your payroll and send in you FPS say on 19th Dec, pay some staff the same day, and pay the rest on 31st?
Maybe there is an issue with the payment date on the software or something?
Simple
Run the monthly payroll for everyone with the payday specified as the "much earlier" date in DecemberSubmit the monthly FPS on that date, so that you will comply with the RTI requirement to file on or before the date of paymentPay the staff who want to do their Christmas shopping early on the same datePay the staff who would prefer not to have to a gap of 6 or 7 weeks between paydays on the usual date later in the month (you will have complied with the requirement to file the report before the date of payment)
Multiple FPS Submissions
I believe you can make multiple part FPS submissions providing the overall data for that month isn't duplicated.
However I think Euan's answer above is probably best suited to your situation.
Software
I'm not sure every software package likes coping with different pay on different dates, which may be a bigger issue than the RTI issue. But Euan's solution is a neat one.