Payroll query - if you know about payroll ...

[tedmundo]

My first payroll run at new job and one employee had a tax code change.

It is a weekly payrun (so week 50)

I misread the code on the letter so updated the employee record with the wrong code. I am a donut. I simply misread the number.

I have now of course changed the code in preparation for the run on Friday.

We pay tax/ni monthly so not paid hrmc yet for this month or for the week with the incorrect code.

Will the payroll system update the amount due to be paid correctly? Or do I need to phone them up before the tax/in is paid next? Which would be year end wouldn't it!?

I'm so cross with myself. The type on those letters is v small in my (lame) defense!

Any advice most appreciated.

it will rejig at week 51
say nothing to HMRC

Thank you so much for replying.
I assumed that was the case but just wanted to check.

It's fine if it's s cumulative code - will all right itself for week 51. Let the employee know though as their net pay will be unpredictable.

Thank you. It is very small values (less than a fiver) but yes I will indeed let the employee know.

Hi - is it still cumulative if I ticked the box for month 1, week 1?

No, then not cumulative, but in this instance your best bet is to untick for weeks 51 and 52 so that their tax is square. Check before sending though !

By checking do you mean check that the tax amount for weeks 51 and 52 is nothing too crazy?

By taking out the tick, it should balance the tax for this month over the next 2 week pay runs. Yes, that does make sense to me, thank you.

Yeah, just make sure the software does nothing random !

Thanks talkinpeace - you have been a great help. It is appreciated.

We use Sage One which seems pretty straightforward.

Ah, cool.
Sage One lets you preview before submitting so you can make sure that the week 50, 51 and 52 payslips slot together

Hi talkinpeace
Sage one last week credited the employee for the tax deducted the week before. Would you put the tick back in for month 1 week 1 for the rest of the tax year pay Runs now that it has squared the amounts?

There is only week 52 to go so yes, probably best to as then the P60 is spot on :-)
glad it worked !

Thank you! You have been so kind to answer my queries.
Much appreciated.

No worries at all.
PAYE is a nightmare and I like it when people get happy results

What were the tax codes? Strictly you should roll back and reprocess. If the difference is small, process week 52 using the correct code, and move on. Nic is not affected by tax codes, any small differences will be refunded in due course via new tax codes, but not for several months.