MYOBCommunity
Partner Zone
|
|
Partner Zone

Fortnightly pay cycles

This thread is now closed to new comments.
Some of the links provided in this thread may no longer be available or relevant.
If you have a question please start a new post.
Contributing Cover User SharronAkH
17 Posts
Contributing Cover User
New Zealand
SharronAkH
Contributing Cover User

17Posts

0Kudos

0Solutions

Fortnightly pay cycles

Hi,  I have recently integrated the MYOB payroll and accounting packages and need assistance when a fortnightly pay (ours end every 2nd Sunday) ends on 31 May but the pay is processed from our bank account on 2 June.  Payroll reports and bank statements won't reconcile if I don't  change the date in the transaction journal to reflect the bank process date (which is what I do each pay cycle).  However, all the payroll reports will show 3 pay cycles for May (3rd, 17th and 31st)  Payroll PAYE totals will also be for 3 pay cycles but the accounting package will record 2 pay cycles - but we will have 3 pay days in June.   

 

Should I change the pay period in Payroll to the Tuesday 2 June (would normally be  Sunday 31st May) or will this affect something else in the background (PAYE, annual leave, or other calculations)  This will in effect mean 1 pay period is 16 days (18 May - 2 June) and the next one will be 12 days (3 June - 14 June)

OR should I manually adjust May and June PAYE reports and payments?  How do other fortnightly payers address this situation.

 

Thanks for your help.

1 REPLY 1
MYOB Moderator KattC
790 Posts
MYOB Moderator
New Zealand
KattC
MYOB Moderator

790Posts

24Kudos

81Solutions

Re: Fortnightly pay cycles

Hello @SharronAkH

 

First of all I would like to extend a warm MYOB Community Forum welcome, I hope you find it a wealth of knowledge.

 

How payroll works is using the payment date you pay your employees. If you need to have the pay hitting the June Period you will need to change your PAYE period to June before you do the pays. If you need it hitting the May period you would make sure the PAYE period is correct before you begin. 

 

IRD needs to know what day/month the employees have been paid, this is the part they report on hence the 3 pays in May based on payment date.

 

You will need to run this passed an accountant to see if you should be changing the PAYE period so you have 2 pays per month or if you need to leave it based on payment date. Generally based on payment date suits most business but not all suit this method. 

 

Please let us know if you need any more assistance.

 

Kind regards,

 

Kat 

Client Support 

Didn't find your answer here?
Try using advanced search to find a post more easily Advanced Search
or
Get the conversation started and make a new post Start a Post