When to pay employees?

katy123

So we normally receive payslips from our accountant around the 10th of each month and I was just wondering if there's like a date that you should pay your employees? I know when I was employed, it was always around the 25th of each month (towards the end in arrears). What's to stop me to pay them earlier this month given it's XMAS. Just wondering if there's any rules/legislation to stop that. The person that processes our payroll has left for XMAS already! Happy XMAS everyone and thanks.

tacpot12

There is no set date that you should pay your employees, but I would suggest that you don't change the date that you pay your staff in December, as you have a contract with your employees to pay them on a set date.

If you have a very few employees and can consult them all, you might find that they all agree that they want to be paid before Christmas, in which case you can pay them once you have the payroll details to allow them to be paid.

I assume that the payroll person having left for Christmas will not stop you paying the staff the correct amounts before Christmas if all the staff want this.

Pennywise

Under HMRC's payroll RTI rules, you can't pay employees before you've made to RTI submission to HMRC nor the payroll date as specified on that submission.

katy123

Thank you for the replies, when I look at the payslips from the last 6 months, it shows "paid by credit transfer:
-26th July (Fri)
-27th Aug (Tue)
-26th Sept (Thur)
-28th Oct (Mon)
-26th Nov (Tue)
-24th Dec (Tue)

I can't see a pattern in the dates. Does RTI apply to us as a small company? We get a P30 every quarter and pay it.

Savvy_Sue

Pennywise wrote: »

Under HMRC's payroll RTI rules, you can't pay employees before you've made to RTI submission to HMRC nor the payroll date as specified on that submission.

that's a bit of a nightmare ...

You see, historically our pay date has been 25th of the month, for the whole month. This dates back to the days when we were paid by cheque, and that gave us the chance to pay the cheque in and get it cleared before the last day of the month.

Then we moved over to BACS, and (obviously) we have to pay at the latest by 25th, but if that is not a working day, the latest date we can use is the last working date before 25th.

BUT because we have had occasional 'issues' with payment NOT actually being made on the day they're supposed to land, we now pay on the 24th, or the last working day before that.

But our payslips are always dated 25th. Even though the latest we'd be paid is 24th. And this month it's scheduled for 23rd.

Not quite sure when our RTI is submitted, because our payroll provider takes care of that.

But technically, should our RTI date be the date we intend to pay???

Savvy_Sue

katy123 wrote: »

Thank you for the replies, when I look at the payslips from the last 6 months, it shows "paid by credit transfer:
-26th July (Fri)
-27th Aug (Tue)
-26th Sept (Thur)
-28th Oct (Mon)
-26th Nov (Tue)
-24th Dec (Tue)

I can't see a pattern in the dates. Does RTI apply to us as a small company? We get a P30 every quarter and pay it.

This is an old article, but I think it answers your question: RTI applies to your business.

Historically I have sometimes been paid early for Christmas, especially when payday is the last working day of the month.

However, my current manager doesn't think it's a good idea, because a) our salaries are due on 25th, so would be paid on 24th or 23rd (see my post above) and b) paying any earlier than this makes it a very long month until January.

It's clear from your payslips that payment is planned for 24th December, and I wouldn't change that, personally.

Thiona

katy123 wrote: »

So we normally receive payslips from our accountant around the 10th of each month and I was just wondering if there's like a date that you should pay your employees? I know when I was employed, it was always around the 25th of each month (towards the end in arrears). What's to stop me to pay them earlier this month given it's XMAS. Just wondering if there's any rules/legislation to stop that. The person that processes our payroll has left for XMAS already! Happy XMAS everyone and thanks.

katy123 wrote: »

Thank you for the replies, when I look at the payslips from the last 6 months, it shows "paid by credit transfer:
-26th July (Fri)
-27th Aug (Tue)
-26th Sept (Thur)
-28th Oct (Mon)
-26th Nov (Tue)
-24th Dec (Tue)

I can't see a pattern in the dates. Does RTI apply to us as a small company? We get a P30 every quarter and pay it.

May I enquire as ti which employees you paid by credit transfer on 26th July (Fri), 27th Aug (Tue) & 26th Sept (Thur)? :huh:

https://forums.moneysavingexpert.com/discussion/6052384/employing-first-employee

Confused.com! :cool:

I would advise that you refer to the contracts of employment you have agreed, but it seems you haven't got around to writing any yet. :cool:

https://forums.moneysavingexpert.com/discussion/6078566/staff-employment-contract

katy123

Thiona wrote: »

May I enquire as ti which employees you paid by credit transfer on 26th July (Fri), 27th Aug (Tue) & 26th Sept (Thur)? :huh:

https://forums.moneysavingexpert.com/discussion/6052384/employing-first-employee

Confused.com! :cool:

I would advise that you refer to the contracts of employment you have agreed, but it seems you haven't got around to writing any yet. :cool:

https://forums.moneysavingexpert.com/discussion/6078566/staff-employment-contract

The previous payments were to myself as an employee of the company, i don't have a contract of employment

Dennis800

There’s no strict date to pay employees. I think the date in the agreement should still be used. But given it’s December, I’m sure most of the employees would love to receive their monies before Christmas.