Christmas bank holidays, Christmas Shut Down and Christmas Skeleton Staff can mean changes to pay dates. If you’re thinking of changing your pay date what do you need to consider?
Check your employment contracts
If the pay date does not meet the clause in your employment contract you could be breaking the terms of the contract.
Is the pay day in the same tax week or month as the previous day? If not you do not need to do anything special other than selecting the appropriate pay date on your payroll software. If the new pay day is in the same tax week or month you will need to treat the first payment as an extra payment for that period. For example if you normally pay on the 28th of the month but are bringing pay day forward for Christmas to the 21st December. Both pay dates would fall under the same tax month (month 9) so you don’t need to do anything.
Think about BACs pay dates
With the bank holidays its easy to get confused but remember you need 3 days for a BACs payment to clear.
- Pay date Monday 24th December 2018 – BACs needs to be submitted no later than Thursday 20th December 2018.
- Pay date Thursday 27th December 2018 – BACs needs to be submitted no later than Friday 21st December 2018.
- Pay date Friday 28th December 2018 – BACs needs to be submitted no later than Monday 24th December 2018.
- Pay date Monday 30th December 2018 – BACs needs to be submitted no later than Thursday 27th December 2018.
- Pay date Wednesday 2nd Januray 2019 – BACs needs to be submitted no later than Friday 28th December 2018.
- Pay date Thursday 3rd January 2019 – BACs needs to be submitted no later than Monday 31st December 2018.
Tell your employees
Most importantly let your workers know in advance when they’ll be paid.