17 Apr Does your payday fall on a non-banking day?
Reporting payroll when your normal payday falls on a non-banking day
The date you pay your employees is usually agreed when they begin working for you and is normally a calendar date, ie 28th of each month or a day, the last Thursday of the month.
It is essential that you report when you pay your employees on time and use the right payment date when doing so. Remember if you use an incorrect payment date, this could impact on your employees’ financial situation, including any income related benefits, such as Universal Credit, so it is important that you send accurate reports to HMRC on time or as soon as you able to do so.
Would you like help with running and managing your payroll? Contact us now to find out how we can ensure you file accurately and on time everytime. Talk to us now on 01379 646943.
If you are running your payroll yourself then read on .
There may be occasions, when you pay your employees at a different time and not on the agreed day or date. This can arise when the regular payment date falls on a non-banking day (i.e. on a Saturday or Sunday or on a Bank Holiday).
If so, a payment reporting easement applies to ensure that this payment is treated correctly for tax purposes. The date you should enter on your Full Payment Submission (FPS) will depend on when you actually pay your employees and whether this is earlier or later than their normal payday.
For example Easter 2019
This Easter has four consecutive non-banking days (19th April – 22nd April 2019) so you may not be able to pay your employees on their regular payday during the Easter Holidays in April this year.
If you would normally have paid your employees on any one of those dates, but instead will pay them early on the last working day before the Bank Holidays; then you must report your normal pay date on your FPS, for example:
When a regular payday falls on a non-banking day, but payment is made on the last working day before the regular payday. For example
|Regular date of Payment||Non-Banking Date||Actual date of Payment (or earlier*)||Payment date you use on your FPS|
|19th April 2019||19th April 2019||18th April 2019||19th April 2019|
|20th April 2019||20th April 2019||18th April 2019||20th April 2019|
|21st April 2019||21st April 2019||18th April 2019||21st April 2019|
|22nd April 2019||22nd April 2019||18th April 2019||22nd April 2019|
You can report these payments early in advance of the actual payment date, but we recommend you don’t submit your FPS too early – as you might need to correct it if information changes, for example an employee leaves or there is a change in an employee’s tax code.
If you decide to pay your employees on the first working day after the Easter Holidays – then you should report the payment on your FPS as if it has been paid on the regular payment day/date.
|Regular date of Payment||Actual date of Payment (or earlier*)||Payment date you use on your FPS|
|19th April 2019||23rd April 2019||19th April 2019|
|20th April 2019||23rd April 2019||20th April 2019|
|21st April 2019||23rd April 2019||21st April 2019|
|22nd April 2019||23rd April 2019||22nd April 2019|
* We would recommend you send your payroll submission to HMRC early in these circumstances, but if you do send your FPS on a later date than the regular payment dates you must select “Late reporting reason code G”.
All other payments you make on regular paydays that fall on banking days and the deductions due must be reported on or before the date of payment to your employees.
Would you like help running our payroll. While filing correctly and on time is essential, payroll can be time consuming and take you away from other important duties.
Why not let EA Assist manage your payroll for you. Contact us now to find out about our bespoke service. Call us on 01379 646943 or email email@example.com.