Do I need to run a week 53 / 54 / 56 this year?
- If you run a weekly payroll with a pay date of 5 April it
should be a week 53
- If you run a 2-weekly payroll with a pay date of 5 April it
should be a week 54
- If you run a 4-weekly payroll with a pay date of 5 April it
should be a week 56
This year, for the first time since PAYE began, the 6 April
falls on Good Friday. As this is a Bank Holiday it presents a
problem. When should you pay your employees if you have a pay-day
of the 6 April? If your normal payroll date falls on the 6 April
you may be planning to bring the pay-day forward one day and pay on
the 5 April.
The following information has been taken from guidelines issued
by HMRC:
This will also apply when Good Friday next falls on 6 April in
2012.
This guidance does not replace or alter the existing guidance in
booklet CWG2 about regular paydays falling in week 53 of the tax
year. Operation of PAYE & Class 1 NIC when the regular date for
payment is a non-banking day.
When a regular pay day falls on a non-banking day (Saturday,
Sunday or Bank Holiday) and because of this the payment is made on
the last working day before
the regular pay day, the payment may be treated for PAYE and Class
1 NIC purposes as having been made on the regular payment day.
For example:
- Pay due on Bank Holiday Friday 6 April 2007 or Bank Holiday
Monday 9th April 2007 (tax year 2007/08) but paid on Thursday 5th
April 2007 (tax year 2006.07) may be treated for PAYE/NIC purposes
as being paid on 6 April and 9 April respectively
- Pay due on Sunday 6 April 2008 (tax year 2008/09) but paid on
Friday 4 April (tax year 2007/08) may be treated for PAYE and NIC
purposes as being paid on 6 April
How do I pay a net bonus?
- Go to Company/Alter Payments/Deductions and use the wizard to
configure a
net to gross single payment. You can call this payment anything you
like, such
as 'Christmas Bonus'. If you are comfortable not using the
wizard configure a
new payment with a category of 'Net to gross single
payment'
- In the payroll screen for the employee(s) you wish to pay the
bonus to, click
on the next available free line under the Pay/Ded
section. Choose the new
net-to-gross single payment from the drop down list
- Enter the amount of net bonus you want to pay the employee in
the 'Amount' field
- Preview the payroll and you will see the grossed up value of
the bonus under the payments section