Monthly payment method

Starrman

Hi,
My daughter works for a company who pay her monthly but tax her weekly. I have not heard of this before. They are a family owned business and also pay her half by cheque and half in cash.
Is this ethical ? Or is there a benefit to the company in paying her in this way ?

Any suggestions appreciated.

Annisele

I'm confused by what you mean.


Do you mean your daughter gets a monthly payslip, but it has deductions showing the tax/NI for each week? Or do you mean they somehow take cash away from her every week in respect of tax?



On the cash/cheque thing, both count as money. So long as the employee is getting the correct amount of money in their hands, and all of that money is being correctly declared to HMRC, there's no problem.
If it's a business that takes a lot of cash, I can vaguely see a practical benefit to the employer of the payment method. If they use the physical cash to pay their employees, they don't have to bother going to the bank to pay that cash in.

Les79

Nothing unethical with paying by cheque or cash (or a combination of both), AS LONG AS the cheque doesn't bounce... It was a bit before my time, but I believe that people in the past were paid by a form of cheque (Like a GIRO)?


How does weekly tax on monthly pay work? The only possibilities I can think of are:


1. Your daughter PAYS THEM x amount per week as "tax" and then gets the whole amount back at the end of the month


2. They pay your daughter a full wages, less tax, every month and give her a payslip which reflects roughly 4x smaller payments of tax (monthly tax/4)


If 1. I think alarm bells should be ringing. If 2., I'm not sure what your point is SO LONG AS the tax paid is correct.

chrisbur

More details needed, especially what are they doing about the extra days in most months.

Dazed_and_confused

She could start by looking at her personal tax account on gov.uk, this shows what payments the employer is reporting to HMRC.

sangie595

Les79 wrote: »

Nothing unethical with paying by cheque or cash (or a combination of both), AS LONG AS the cheque doesn't bounce... It was a bit before my time, but I believe that people in the past were paid by a form of cheque (Like a GIRO)?


How does weekly tax on monthly pay work? The only possibilities I can think of are:


1. Your daughter PAYS THEM x amount per week as "tax" and then gets the whole amount back at the end of the month


2. They pay your daughter a full wages, less tax, every month and give her a payslip which reflects roughly 4x smaller payments of tax (monthly tax/4)


If 1. I think alarm bells should be ringing. If 2., I'm not sure what your point is SO LONG AS the tax paid is correct.

Would you mind stopping making me feel old? It wasn't the Dark Ages you know!:rotfl:

Les79

sangie595 wrote: »

Would you mind stopping making me feel old? It wasn't the Dark Ages you know!:rotfl:

I actually asked someone who is over 40 whether a GIRO was paid like a cheque before I posted this :rofl:

TELLIT01

Paying partly by cheque is also used by some companies with short term cashflow issues. By issuing cheques they are effective deferring payment by several days.