Please pay attention to the following before you do your reporting:
- the pay period
- the date when the money will be accessible (payment date)
Pay period
Your employee accrue his salary in the pay period. However, the pay period is not always a calendar month. Numerous hourly-paid employees have a pay period from the 20th of one month until the 19th of the next.
Payment date
The payment date is the day when the salary is available to your employee. The payment date decides which month your reporting relates to, and it also decides the tax year of your employee.
Example
If your employee is paid twice in the same calendar month, it could have effect on his private financial situation. He may also not be elegible for certain public benefits, housing benefit or free daycare for example. He may also risk getting an incorrect tax assessment notice resulting in outstanding tax.
Therefore, be particularly careful to do your reporting on time - especially at the end or at the beginning of a year. Remember, that payroll agencies or accountant may have short deadlines.
