Could someone help me with this query please.
If an employee starts to late in the month to be included on that monthly
payroll eg 25th April, and therefore receives payment in May for April and
May's salary we have always manually calculated the ni for 2 periods and
adjusted his May ni calculations accordingly. We have also been doing this
if someone is leaving in the first couple of days of the following month
and we have been requested to pay them off early eg leaves 3rd May and we
pay them in April.
My manager has queried if this is correct, and I know I was told by the
Inland Revenue that we do calculate for two separate periods for late
starters, but am not sure what the position is regarding early leavers (as
per my example above). I have had a quick look through my NI books but
can't lay my hands on anything at the moment, so thought I would ask what
other establishments do.
Many thanks for any info you can provide