Shorten an employee's pay frequency

You can shorten an employee's pay frequency if the last tax period you processed doesn't overlap the first one on the new frequency.

This ensures the employee doesn't receive more tax-free pay for the year than they're entitled to.

Use the tables and information below to find out when and how to shorten a pay frequency.

To help you find out when you can change frequencies, use the tables below:

Monthly to four weekly

Fortnightly or four weekly to weekly

The first payment at the new pay frequency must be after the last week of the last period you updated.

Use a tax calendar to check whether your employee's tax periods overlap. If you don't have one handy, visit our tax week and month calendar article.

Click the relevant option below to view an example:

What to do if you have overlapping pay periods

Sometimes, there's an overlap between the last tax period on one frequency, and your preferred first period on a new frequency.

In this case, choose from the following options to resolve it:

Continue processing at the old pay frequency

Continue with the existing pay frequency, and shorten it at the next opportunity. ▼ Click here to view an example.

Wait until the new tax year

You can change any pay frequency before you process any payments in the new tax year.

Roll back and reprocess

With this option, you can start paying the employee with the new pay frequency despite any overlap.

To do this, you need to roll back the overlapping payments, and reprocess them on the new frequency.

1. Check that you have reports detailing the payments in any pay runs that overlap your preferred new pay period.
2. Rollback any pay runs where their tax period overlaps with your preferred new pay period.
   
   TIP:

   For help with using rollback, visit the rollback option article. 

3. Set the employee's new shorter pay frequency using the change an individual employee section.
4. Reprocess the original gross payment you rolled back plus the gross pay for the new pay period, using the shorter frequency.
5. Use a post-tax and National Insurance deduction to deduct the net amount you paid in the periods you rolled back. If you need help with creating a deduction, visit the set up deductions article.
6. Provide the employee with a replacement payslip.
7. Update records then submit a full payment submission (FPS) adjustment.

If you already included the employee in an FPS with a later process date in this pay period, you can't submit an FPS adjustment.

However, the next FPS you submit contains the correct year to date values, including the figures for the previous periods.

Change an individual employee

1. Double-click the required employee then click the Employment tab.
2. From the Payment Frequency dropdown list, select the required payment frequency.
3. Click Yes then click Save then click Close.

Change multiple employees

To change the pay frequency for a group of employees, use Global Changes.

1. On the Employee List, select the required employees.
2. Click Tasks then click Global Changes.
3. Click Assign Employee(s) a new then click Pay Period.
4. From the Select a new employee pay period dropdown list, select the required pay frequency.
5. Click OK then click Yes then click OK.

Pension schemes

Once you've changed pay frequency, check if you need to change the employee's pension scheme. For example, if you have a separate pension scheme for each frequency.

Your software calculates pension contributions using the employee's pensionable pay on their new pay frequency.

If you're unsure, contact your pension provider for advice. 

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