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Paying Wages on Friday 2nd March 2021

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  • 29-03-2021 11:50pm
    #1
    collsoft
    Registered Users Posts: 253 ✭✭


    Hi All,

    As you all know this Friday 2nd April 2021 is "Good Friday" and as such is a "Bank Holiday" rather than a public holiday.

    So, you wont be able to process payrolls to be paid on Friday - you will have to pay them on Thursday.

    However there is a potential problem that you need to be aware of and try to avoid.

    Thursday the 1st April belongs to Revenue week 13 where as Friday 2nd April belongs to Week 14. Therefore the tax calculations (PAYE & USC) are different for the two days because the credits and rate bands allowable are different for each day.

    With PAYE Modernisation there is a special allowance for payrolls that fall on a non-banking day.

    On such days you continue to process your Payroll using the date of the Bank Holiday, and you make your payroll submission to Revenue with a Date of Friday 2nd April.

    However, because Friday 2nd April is a Bank Holiday, you are allowed to actually make the payment to your employees on the previous banking day - in this case Thursday 1st April.

    So this week if your normal pay day is Friday, then you should process your wages as Friday 2nd April, report to Revenue that the payments were made on Friday 2nd April - but you actually can make these payments on Thursday 1st.

    Whatever you do, dont try and change the paydate in your software from Friday 2nd April to Thursday 1st April


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