4 Weekly Pay

mrdekra

Hi guys,
Apologies if this is in the incorrect forum, but any help would be appreciated.

My employer is moving from monthly pay 12 yearly payments, to 4 weekly pay (13 payments) they have advised that our tax code will change as we are getting paid more often, which I understand, however they are not doing this at the beginning of the tax year, but in October.

We are already halfway through the year and between the change and the end of the tax year 5th April there will still only be 6 payments, so a change of tax code lowering my tax allowance would surely mean I will be overcharged? Or am I wrong?

Also, because we are halfway through the year and they are claiming the 13 pay packets they are saying they will pay us less too, so for example if I was on 12k it would change from 12k / 12 months - £1k per month to 12k / 13 payments - £923... This is fine if we were starting at the beginning of the tax year, but as we are halfway through the year I do not believe that they can pay my contractual salary. I have queried this with them, but they claim that paying my after April 5th 2020 is still legal, even though it will be outside the tax year and to my mind be a breach of contract???

Apologies if this doesn't make sense, I'm very concerned for my families financial future as I am the sole bread winner and a loss of a minimum £160 per pay packet will put us under immense strain.

Any help would be appreciated

xylophone

https://forums.moneysavingexpert.com/discussion/1215079/changing-from-monthly-pay-to-4-weekly-please-help

https://help.sageone.com/en_uk/payroll/payroll-change-pay-cycle.html

https://www.metishr.co.uk/can-i-change-an-employees-pay-day/

chrisbur

To better understand this can you give the date you are normally paid each month, the period covered by this, and then the proposed new first pay-date for the 4 weekly payments and the period this will cover.

mrdekra

Hi Chris,
Typically we get paid on the 28th of every month unless it falls on a Saturday for example.

Our final monthly pay day is 27th September 2019 this is our final pay. We are paid 2 weeks in arrears and 2 weeks in advance.

Our first four weekly pay day is 25th October 2019, as the start of the pay period (Sunday 22nd September) overlaps with the last monthly pay, I will be paid for my contracted hours between Tuesday 1st Oct to Saturday 19th October only along with any variable adjustments for the period of Sunday 15th September to Saturday 19th October. That is 11 calendar days less in basic contractual pay than you would have in normal October monthly pay and 1 more week of any variable pay

I will then be paid 4 weekly on:

22 Nov 19
20 Dec 19
17 Jan 20
14 Feb 20
13 Mar 20

The final payment will fall outside the tax year on April 10th

Hope this makes sense! Thanks for the help

chrisbur

mrdekra wrote: »

Hi Chris,


Our final monthly pay day is 27th September 2019 this is our final pay. We are paid 2 weeks in arrears and 2 weeks in advance.

If you are paid two weeks in arrears and two weeks in advance then what is happening to the rest of the time as only one month has 28 days all the others are longer. Also the two weeks in advance would take you into most of the first half of October but your first pay period as 4 weekly starts on 1 October.

mrdekra

We have been offered a loan to bridge the gap from monthly to weekly pay then we will be paid for exactly what we work. So week 1-4 of the previous period

chrisbur

mrdekra wrote: »

We have been offered a loan to bridge the gap from monthly to weekly pay then we will be paid for exactly what we work. So week 1-4 of the previous period

Sorry not sure what this is about so my following post assumes that your last payment on monthly was your salary for September and that there was no change to your tax position other than moving from monthly to four weekly.

chrisbur

mrdekra wrote: »

Hi Chris,
Typically we get paid on the 28th of every month unless it falls on a Saturday for example.

Our final monthly pay day is 27th September 2019 this is our final pay. We are paid 2 weeks in arrears and 2 weeks in advance.

Our first four weekly pay day is 25th October 2019, as the start of the pay period (Sunday 22nd September) overlaps with the last monthly pay, I will be paid for my contracted hours between Tuesday 1st Oct to Saturday 19th October only along with any variable adjustments for the period of Sunday 15th September to Saturday 19th October. That is 11 calendar days less in basic contractual pay than you would have in normal October monthly pay and 1 more week of any variable pay

I will then be paid 4 weekly on:

22 Nov 19
20 Dec 19
17 Jan 20
14 Feb 20
13 Mar 20

The final payment will fall outside the tax year on April 10th

Hope this makes sense! Thanks for the help

Your final payment for September will be made on month 6 which within a few pence is the same tax allowance as week 26.

Your first 4 weekly pay will cover 2 weeks and 4 days and will be paid on 25/10 This will fall in week 32 on the 4 weekly schedule.
This means that you will get 6 weeks tax allowance for this payment rather than the four weeks that you will get from then on each payday. If you are on 1250L you will get an allowance before tax of about £1443 which will become about £962 for the following paydays.
Your last payday for this tax year on 13/3 will take you to week 52

Tax is always calculated on the date a payment is made not when it is earned so although your earnings which will be paid on 10/4 all fall within this tax year as the payday falls in next tax year they will be paid as week 4 of next tax year.
The reason for this is not that you are being paid 4 weekly but that you are now being paid a week in arrears instead of a few days in advance.

You do need to keep an eye on the calculation of pay from monthly figure to a weekly figure as some employers have been known to get this wrong.

Need2save

Hi there,

I’m trying to do a new post on this site but I can’t find the pink button that I meant to click?

I almost given up about it. Then I saw this thread and thought to place my question here, maybe someone has any idea of what I’m talking about.

I’m a single parent contracted 16 per week paid weekly, my youngest is still school age so I do only school hours.

I had to stay home a few days(hours in wage terms) dud to the summer holidays and requested that my manager would pay me holiday pay.

My manager forgot and only paid the hours that I did instead of the normal week wage that would include my holiday pay and working hours.

When I asked if they could pay it on the following week, I was told that they can’t do that because I’m contracted 16 hours and to pay the rest of the holiday hours that I asked on top of the salary would be against the law.

What I want to know is this... is my manager lying or is this really the case?
I have had a really hard time to find money for the bills that fell on that week.

We pay everything ourselves as I have older kids that work. They already help out and I can’t even dare to ask for more.
If anyone could reply would be great.
Thank you.

Fordytri

4 Weekly pay direct debit issues...

Hi MSE, I don't normally post because a quick type of key words in the search bar usually finds a question which has already been asked but alas, not this time! 

Anyway, back to the subject!...I get paid every 4 weeks which can be at any point during the month, 13 pay days a year and to compensate for examples where my pay arrives on say the middle of a month but my direct debits go out on the 1st, I have an overdraft to the size of my 4 weekly pay, I therefore bounce in and out of this regularly, which until recently wasn't too big an issues, but now with only a basic payment due to Covid 19 and the banks charging 40%, it bl@@dy well is!...
...So, is it possible to instruct lenders to collect payment every 4 weeks inline with my (and probably millions of other's) pay?...Because I don't recall ever seeing that option on an application?...Or do I need to just try and organise my finances more and make sure I have enough to cover? Easier said than done at the moment!!
Any advice would be great, thanks in advance.

molerat

I am afraid you need to organise your finances to suit your commitments. They are not required to offer you 4 weekly payments, it would likely take a major computer change to offer two different payment patterns. You were just kicking the problem down the road by using the overdraft and now it has unfortunately kicked back.  If you cannot afford to pay many providers will currently offer you a breathing space but that is just putting your problem on pause.