Paying your employees over bank holidays
Description

When you process a payroll, you need to submit a full payment submission (FPS) on or before the date you pay your employees.

However, sometimes you may need to pay your employees on a different date to normal, for example, on a bank holiday.

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Paying early

If you're going to pay employees early due to bank holidays, you still need to use your normal process date.

For example, your normal payday is Thursday 25 December, but you're paying your employees early on Wednesday 24 December.

  • Use your normal process date of 25 December in Sage 50 Payroll
  • Process your payroll as normal
  • Submit your FPS on or before 24 December
  • Arrange for employees to receive the payment on 24 December

Using your normal process date helps to protect your employees' eligibility for Universal Credit where applicable. If you report a payment date to HMRC that's different to your regular payment date, it can affect their entitlement.


Paying late

If you're going to pay your employees on the first working day after the bank holiday, process your payroll using your normal process date.

When you send your FPS on a later date than your regular payday, select code G: Reasonable excuse as the reason the FPS is late.


Salary and Supplier Payments users only

If you use Salary and Supplier Payments to pay your employees, you need to follow some extra steps.

To find out what to do, follow our salary and supplier payments - processing over bank holidays article.


 

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