monthly payroll

for weekly paid staff

Didn't find your answer?

potential client is paying their staff weekly, but wants to run a monthly payroll to help keep costs down

staff wont accept monthly payments (industry specific tradtion) and want to stay as being paid  weekly

is this possible or a complete non starter with RTI?

Replies (7)

Please login or register to join the discussion.

Routemaster image
By tom123
26th Jun 2017 15:35

With proper consultation, over a reasonable amount of time, and allowing for the change from 'in hand' payments to payments each month your client needs to go back to his staff and explain it will happen - who is in charge here!

Trying to combine weekly advances with a monthly payroll sounds traumatic to say the least - and best avoided. In reality you are likely to fall foul of RTI at some point.

Thanks (0)
avatar
By bernard michael
26th Jun 2017 15:38

Is he calculating the weekly payment
and then adding up to equal a month's total
or
Is he calculating a month's wages and dividing by the number of weeks
Either way he's spending a lot of time anyway so what's the point

Thanks (0)
paddle steamer
By DJKL
26th Jun 2017 16:10

When we transitioned one of our staff from weekly payroll to monthly payroll (the last remaining weekly employee) I softened it by moving payroll processing from last week of month to mid month (in effect two weeks areears and 2 in advance) so that thegap in cashflow was only one week. I also offered a loan to be recovered over 3-4 months if cashflow was going to be an issue (was not required by individual)

The fact was weekly pay (building trade) was a historic leftover and I was forever jumping through daft hoops to go on holiday, this change also stopped cash wage packets and embraced electronic payment so I also save time not having to go to bank to draw cash.

I now know that I can safely go on holiday circa 13-15th of any month and if need be go for three weeks without issue.

Thanks (0)
avatar
By SkyBlue22
27th Jun 2017 10:38

RTI submissions must be made on or before the payment, if you do it monthly then it will not be on or before, as several weekly payments will have already been made.

Thanks (0)
By Democratus
27th Jun 2017 10:48

Yes the stupidity of the "on or before rule" in this case makes, what appears to be a perfectly reasonable solution, not viable.

It is possible to move people and change Ts & Cs but requires more ingenuity, similar to the DJKL method.

On a positive note blaming HMRC for being obstructive helps a bit.

Thanks (0)
Euan's picture
By Euan MacLennan
27th Jun 2017 12:05

If the potential client does not want to run a weekly payroll, how will he work out the net amount to be paid to the workers each week? Perhaps, he intends to pay them a round sum "advance" for the first 3 (or 4) weeks and adjust the payment for the last week of the month? Unfortunately, advances of earnings have to be reported under RTI on or before the date of payment, so that wouldn't work.

How will he cope with the fluctuations of tax and NIC when there are 5, rather than 4, weeks in a month?

If the client cannot persuade his staff to give up weekly wages (by offering them a loan, repayable over (say) 3 months), he will have to run a weekly payroll and submit weekly RTI reports.

Thanks (0)
avatar
By NYB
27th Jun 2017 17:28

Answer is no. Simple - rules are rules.
I had a couple like this. Told them both I was not prepared to do weekly. One went somewhere else. The other does it himself now with Brightpay &I offer help. I have this hard attitude of " is your business being run by your staff". Reluctant clients have actually embraced the change and wish they had donevitvyears ago. I find it wonderful with no weeklies.

Thanks (0)