With December around the corner, we have provided some guidance on what dates should be included on your Full Payment Submission (FPS) during the festive period.
Regardless of whether you intend to pay your employees early at Christmas, you must still report your payroll with the normal payment date, even if the usual pay date falls on a weekend or bank holiday.
For example: if you pay on Friday 23rd December 2022 but the normal/contractual payment date is Friday 30th December 2022, you should still report the payment date on the FPS as 30th December and ensure the submission is sent on or before 30th December.
The rationale behind this is to protect your employee’s eligibility for Universal Credit, as the assessment period for Universal Credit is determined upon the dates submitted on the FPS.
Universal Credits are a social security payment, provided to those on low earnings or out of work to support them with daily living costs.
If it looks as though someone has received two payments in one assessment period, it may affect their eligibility for Universal Credits and therefore leave them struggling financially.
Although we have focused on the Christmas pay period, ensuring you submit your FPS on the regular pay date should be applied throughout the remainder of the year.
For example: if you pay on Friday 22nd December 2023 but the normal/contractual payment date is Thursday 30th December 2023, you should still report the payment date on the FPS as 30th December and ensure the submission is sent on or before 30th December.
Where an employee is normally paid on the 25th of each month but is paid on the 24th November 2023 (as the 25th is a Saturday, which is a non-banking day) the employee must have 25th November reported as the payment date.
So remember: submitting your FPS with your regular payment date should be applied for life, not just for Christmas!
Contact our Payroll Team if you have any questions about processing your payroll on 01254 688100.
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