It’s nearly Christmas, which means many people can look forward to a well-earned rest. But if you are an employer or payroll professional, Christmas and New Year's brings a number of potential challenges that you need to be aware of and prepare for before you can start your Christmas break. Here are some of the most common Christmas payroll pitfalls and how to avoid them!
- Changes to payment dates
It is important to let your payroll team know well ahead of time what the arrangements are so they can plan and put the necessary procedures in place. As a result, your payroll processing timetable may also need to be brought forward for December in order to pay everyone on time.
- Full Payment Submission (FPS) and Employer Payroll Summary (EPS) changes
- Christmas bonuses and gifts
First of all, it is important to make the distinction between cash presents and physical goods. It then comes down to whether these goods can be resold for cash or not and whether the employee receiving the gift is a director and how much they earn. This can be quite confusing and it is important you and your payroll team are clear on these definitions. Some professional companies offer payroll advice lines to give guidance on this subject so ensure you make use of these additional resources when in doubt.
- Christmas working hours
By John Spooner, Payroll Legislation Consultant