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| Worked time versus PAYE pay dates http://paybackieforum.azurewebsites.net/viewtopic.php?f=3&t=91 |
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| Author: | eamon [ ] |
| Post subject: | Worked time versus PAYE pay dates |
From a tax viewpoint, Revenue only care about when the employee gets their money, and not what worked time the money relates to. e.g. An employee works 2 weeks in November, but you don't pay them until December (PAYE week 51) - For tax purposes, all that matters is that they were paid in week 51 - The fact they were getting paid for work they did in previous months is irrelevant. Scenario - You pay your hourly-rate weekly-paid employee the last week in October - Employee works the 1st and 2nd week in Nov - You pay them for these weeks in the 3rd week of November Forget the weeks they actually worked! From a PAYE viewpoint it looks like this; - Employee paid on 26 Oct (PAYE week 43) - Weeks 44 and 45 skipped - Employee paid on 16 Nov (PAYE week 46) - Therefore the employee gets 3 weeks of tax credit/cut off point applied to their pay in week 46 (i.e. wk 44 + wk 45 + wk 46) If you pay an employee in week 51 and skip the final payment of the year then they could be due a tax refund from Revenue (because there was a week of tax credits they didn't use up). This will be dealt with between Revenue and the employee after you submit your P35 in Feb. |
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