Payroll preparation for December holidays and Bank Holidays in the UK. December brings a mix of excitement and added complexity for payroll and HR teams. Between the year-end rush, bank holidays, and employee leave requests, planning ahead is essential to ensure that payroll runs smoothly throughout the month.
Here’s a guide on effectively preparing for the December holidays, including handling UK bank holidays and how PaySpace can make your payroll process more efficient.
1. Understand UK Bank Holidays in December
There are two key bank holidays in December:
- Christmas Day: December 25th (falls on a Wednesday in 2024)
- Boxing Day: December 26th (falls on a Thursday in 2024)
These days may result in changes to your payroll schedule, especially if employees are eligible for extra pay or if their normal working hours fall on these holidays. Make sure you know:
- Whether your employees are eligible for holiday pay or time off in lieu (TOIL).
- How to manage payroll adjustments for employees who work on these bank holidays (e.g overtime pay, holiday premiums, etc.).
2. Prepare for employee leave and absences
With employees taking time off for the holidays, it’s crucial to manage absences effectively:
- Holiday requests: confirm holiday leave dates well in advance, so you can manage resource allocation and ensure accurate payroll processing.
- Sickness or absences: track any unscheduled leave, as these may impact pay calculations and need to be reflected in the December payroll.
It’s important to factor in any absences when calculating overtime, bonuses, or leave payouts for employees who worked during the holidays.
3. Ensure your payroll system is flexible.
The holidays can bring unexpected changes, such as late leave requests, urgent payroll adjustments, or last-minute overtime approvals. A flexible payroll system is essential for easily accommodating these changes without disrupting the entire payroll process.
Here’s where PaySpace can make a big difference:
- Real-time calculations: Payspace calculates all payroll changes instantly, including holiday pay, overtime, and bonuses, giving you peace of mind.
- Flexible schedules and multiple payment options: Easily adjust for varying work hours, shifts, and payment preferences.
- Employee self-service: Let your employees view their payslips, update personal details, and submit leave requests via WhatsApp for convenience.
4. Plan ahead for January
As we near the end of December, it’s easy to overlook January’s payroll. Start preparing now for the first payroll of the new year:
- Review PAYE tax bands and other legislative updates for the new tax year.
- Make sure all holiday balances are carried over or reconciled.
- Prepare for any bonuses or performance-based payments that employees may expect at the start of the new year.
For many payroll professionals, this can be a manual and time-consuming task. But PaySpace makes the process much easier. With PaySpace, you can:
- Bulk updates: Apply pay changes to multiple employees at once.
- Effective dates: Set future or backdated effective dates for pay changes
- Automated calculations: Ensure accurate calculations for bonuses, performance-based payments, and other adjustments.
Keep your payroll on track
Payroll teams juggle a lot during the end of the year, from managing early holiday pay to ensuring compliance with year-end reporting requirements. PaySpace makes this process easier, including uploading bulk updates, setting effective dates for pay changes, automating calculations, and ensuring a smooth payroll process during the busy holiday season. Get time back and ease into the new year with PaySpace. Learn more.
