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Payroll error

What payment is easier to make?

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Client missed an employee from their FPS submission.

They have now entered it in June correctly in order to pay the staff member, so it will roll through on next months FPS.

BUT, when making payment *to HMRC* (edited) would you advise to pay what was on the original submission? Or the corrected sum?

My logic is if they use the correct sum, then HMRC will then end up not allocating the over/underpayment properly.  I wondered if best practice would be to pay the original sum to 03 and the 'error' to 04, so when 04 is paid it all matches off.

As you can tell, I dont do much payroll.

Replies (4)

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By SXGuy
01st Jul 2020 17:43

Need more info. You say they were missed off the fps but you then ask should they pay the corrected sum or orginal sum.

So, what exactly happend? The pay was calculated but wasn't shown in the fps?

When you say its been corrected in June. What do you mean? Added to June's pay or corrected may ready for June fps submission?

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Replying to SXGuy:
By ireallyshouldknowthisbut
01st Jul 2020 18:02

The pay was computed (in error), and June FPS filed.

The missing employee was added to the June payroll so the right pay was computed and payslip etc produced and has been paid the correct pay for June.

The question is about HMRC's payment of PAYE. Currently HMRC are expecting the initial filing, and wont find out about the balance until July.

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By Paul Hawes
01st Jul 2020 18:31

I would prefer to make the payment for the corrected amount, but it will undoubtedly result in a letter saying there is an underpayment next month from HMRC as they won't allocate the overpayment, which will then result in you needing to make a phone call asking them to allocate that (and no one wants to be trying to get through to the Employer's Helpline even when it's not coronavirus season).

For the least amount of hassle I would recommend paying the amount submitted with the RTI and then increasing next months payment instead.

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Replying to Paul Hawes:
By ireallyshouldknowthisbut
01st Jul 2020 19:02

thanks Paul, that confirms my logic that its too much hassle to pay the right amount now.

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