Payroll error?

merlinthehappypig

patanne wrote: »

Please don't forget to ask your son to check if his payslip says week 52 or month 12. If they have put it all in week 52 it comes to more than adding week 50, 51 & 52 together.
This could also explain why he is having student loan deducted

Will do, thanks.

Is it possible to post images on threads? I can post the actual payslips if it is with any personal details blacked out.

merlinthehappypig

Right:

Week 47
gross is £279.37
tax is £27.20
NI is £16.86
pay TD is £12175.51
tax TD is £1083
NI TD is £677.46

Week 48
gross is £248.21
tax is £20.80
NI is £13.14
pay TD is £12423.72
tax TD is £1103.80
NI TD is £690.60


Week 49
gross is £226.13
tax is £16.40
NI is £10.50
pay TD is £12649.85
tax TD is £1120.20
NI TD is £701.10

Month 12
gross is £1650.01 (includes week 48 and 49 gross again plus March salary of £1175.67
tax is £186.20
NI is £126
Student loan is £36
Then deductions for the net pay of weeks 48 and 49 of £214.27 and £199.23
Pay TD £13825.52
Tax TD £1269.20
NI TD £803.46

So it's sort of looking like a loan? Not sure if it makes any difference, but he was paid weekly in arrears so the pay for weeks 48 (2/3) and 49 (9/3) were for the week before.

I still can't quite fathom out where the error lies, but if I use the payroll calculator he should have net pay of £214.27 for week 48, £199.23 for week 49 and £996.39 for month 12 giving a total of £1409.89. He has actually received £1301.81, a difference of £108.08. Even allowing for the student loan there is still £72.08 missing somewhere.

patanne

At a quick glance they appear to have deleted weeks 48 & 49 from their pay records and then done month 12 for the larger amount (equivalent to 6 weeks pay?). Total tax for the year appears correct, but I am unsure about the NI it does seem more than I would have expected. I believe that level of payment per month would trigger a student loan payment but I'll leave someone else to comment on that as I have never had to operate that. I'll come back when I've had a look at the NI.

cfnc

Sorry but it is correct, on the years gross salary his tax should be £13825.52 - £7475 = £6350.52 x 20% = £1270.10
The only thing that might seem wrong is the student loan which I assume works on actual week/month basis like NI rather than cummulative like Tax.
This would also be the reason that NI is proportionally higher than previous pay packets.

Kirsty

chrisbur

Have checked the year to date figures and can confirm as I suggested at the beginning they have in affect given a loan for weeks 48 and 49 then paid them with the monthly amount and taken back the loan.
The way you are working out the figures will not give the correct answer I am afraid. If you use the tax calculator for week 48 then week 49 and then for month 12 you are using 6.33 weeks of tax allowance but after getting wages for week 47 he has only five weeks tax allowance left.

patanne

It does appear to be the NI that is causing the difference. Unlike tax that is cumulative, it goes on what you earned in the month/week. If we assume your son is earning say £1200 per month normally he would be paying approx £70 NI but the extra £400 per month is costing approx £50 per month. To put it another way - every extra £ he gets he will only receive 58p. This is because he has already used the thresholds where no payment is taken. All his colleagues should find the same, it is just a shame it triggered an unexpected repayment of his student loan. I don't think they have it wrong but it could have been much better managed

merlinthehappypig

O.k. Thanks for all the help - much appreciated. Still not entirely sure why they had to do this and make it so confusing, but I understand what has happened, if not why they had to do it like this

patanne

I believe you said they WERE paid a week in arrears. It might be worth checking to see if they are now paying 2 weeks in advance and 2 in arrears. He could end up leaving with less than he expected if he does hand his notice in.

merlinthehappypig

patanne wrote: »

I believe you said they WERE paid a week in arrears. It might be worth checking to see if they are now paying 2 weeks in advance and 2 in arrears. He could end up leaving with less than he expected if he does hand his notice in.

I think they are getting paid on the 25th or the Friday before if it's a weekend, for the current month, but I'll check!! Thanks