As the festive season approaches, many businesses may decide to pay their employees earlier than usual. This could be due to various reasons, such as company closures during the holidays or simply to provide the benefit of an early payment ahead of the big day. This is often welcomed by employees, however it is important to remember the permanent easement on reporting Real Time Information (RTI) which applies during this period.
Reporting Early Payments
If you need to process payroll early over the Christmas period, it is crucial to report your normal or contractual payment date on your Full Payment Submission (FPS). For instance, if you pay your employees on 20 December, but their regular payment date is 31 December, you should report the payment date as 31 December. You must ensure that the FPS is submitted on or before 31 December.
Protecting Employee Benefits
Adhering to this reporting guideline helps protect your employees’ eligibility for income-based benefits, such as Universal Credit. An early payment could potentially impact their current and future entitlements, so accurate reporting is essential.
PAYE Reporting Obligations
The overriding PAYE reporting obligation for employers is unaffected by this exception and it remains that you must report payments, on or before the date the employee is paid.
Get in touch
If you have any questions in relation to changing your payroll date for the festive period, or need assistance with anything payroll related, please get in touch with a member of our payroll team by emailing enquiries@pmm.co.uk or calling 01254 679131.
