Payroll Legislation

How to Report Your Payroll Information Accurately and On Time

Legislation

How to Report Your Payroll Information Accurately and On Time

Due Date

Ongoing

Summary

Universal Credit payments are linked to the payroll information you report. It’s therefore important to report your payroll accurately and on time, as changes in earnings can affect the amount of Universal Credit employees receive.

The payment date you report on your FPS should be on or before the date you pay your employees, not the payroll run date or another date from your payroll system, unless the normal payment date falls on a non-banking day (Saturday, Sunday or bank holiday).

When a regular payday falls on a non-banking day, payment is made on the:

  • Last working day before the regular payday
  • Next working day after the regular payday

For PAYE purposes the payment may be treated as having been made on the regular payday. This is also the date that should be reported on the FPS as the ‘payment date’ even if the actual payment is made slightly earlier or later. For National Insurance contributions purposes the payment must be treated as if it had been made at its regular time, if the actual and regular payment days are in the same tax year.

The payment may also be treated as having been made at its regular time when the payment dates cross a tax year. It’s important to check this and make any changes that are necessary to your payroll software so that when you report, you use the correct payment date. HMRC often find employers entering the incorrect payment date is the reason why some employers receive a penalty.

Payroll Legislation Guide

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