HMRC Guidance for paying Early If you pay employees early due to a bank holiday, HMRC advise you that you use your normal pay day as your process date. For example, your normal payday is 25 December but you're paying your employees early on 24 December. Use your normal process date of 25/12/2024, and submit your full payment submission (FPS) on or before 24 December. This helps to protect employees' eligibility for Universal Credit. If you submit an FPS with a different date to your regular pay date, it can affect their entitlement.
Processing with Salary and Supplier Payments To send employees their payment, you need to create transactions using the date employees are due to receive the payment. To make sure you don't affect any Universal Credit applications, submit your FPS with your normal process date. Follow the steps below to do this. - Process the payment in Sage 50 Payroll using the process date you'll actually pay employees, but don't send the FPS.
- Create the transactions in SASP. For help with doing this, visit our pay employees using Salary Payments guide.
- Restore an automatic recover backup to remove the pay run you just processed.
- Set the process date to your regular pay date.
- Process the payments again.
- Check the pay run values match the values of the SASP transactions.
- Submit the FPS as normal.
View an example > For example, your normal payday is 25 December but you're paying your employees early on 24 December. To pay and submit this correctly to HMRC: - Process your employees with the process date 24 December.
- Create the transactions in SASP.
- Recover to before you updated records with the process date 24 December.
- Set your process date to 25 December.
- Process the payroll and submit your FPS to HMRC.
Manual payment Alternatively, you can choose to create the payments manually in SASP. To do this, process using your normal pay date, for example 25 December, without creating any SASP transactions and submit the FPS as normal. Follow the create a payment manually in Salary and Supplier payments guide to create the transactions manually using the early payment date.
Statutory payments If you have employees receiving statutory payments, process these with your normal process date and create their transactions manually. This is necessary because Statutory Payments only calculate up to the Process Date.
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