Christmas payroll needn’t be confusing. December sees many employers often pay their staff earlier than previous months. This could be due to helping with Christmas cash-flow challenges, or to run the payroll before the holiday period. Especially, were offices are often closed between Christmas and New Year.
Usually, employers must report payroll information to HMRC through Real Time Information, on or before the date of any payment. This rule is eased, more-so when an employer pays earlier or later due to the usual pay day falling on a weekend or bank holiday. An employer could choose to pay their staff earlier, especially during the Christmas payroll period, rather than the usual pay day. Whilst still reporting the payroll as occurring on the usual date.
However, care is needed as the payment date reported to HMRC could have a significant impact on the amount of universal credit received each month by their employees. Using the consistent pay date, reduces the chances of two payments of income being classified in the same period for universal credit. Thus, reducing the employees entitlement.
If you need any assistance with payroll, contact us today. We’ll be happy to help!