You can't change an employees' pay cycle in every situation. This depends on:
The point you're at in the tax year
What you've already processed
This is to ensure employees' tax and national insurance (NI) contributions calculates correctly.
The beginning of a tax year
As employees won't have any year to date values yet, you can change to and from any pay cycle.
NOTE:
You'll need to create a new Pay Calendar for any pay cycles that don't yet exist. For more information, read Pay day calendar settings
Mid tax year
For new employees, you can change the pay cycle to any option before including them in a pay run.
For existing employees, you can move between Weekly and Monthly and vice versa. The first pay run after changing can’t overlap with the final pay run in the old pay cycle.
If it does, it will result in the employee under or over paying NI. To check this, refer to the Tax week and tax month calendar.
CAUTION:
It's not possible to move to or from a 4-weekly or 2-weekly pay cycle until the start of the new tax year.
Cause
Resolution
Weekly to monthly
You can't process any week that overlaps into the tax month you want to process the employee in.
For example:
You want an employees' first monthly wage to be Month 5 (August).
The last weekly pay run to process is week 17.
You must not process any weekly pay runs within tax month 5 (6 August to 5 September).
If you’ve already processed weekly pay for the employee in tax month 5, continue to pay weekly until tax week 21, and then change.