PAYE specialists, settle an argument for us.
Bank of six chaps, all contractors, we have a 50/50 split on what we think we mean by monthly in arrears.
Assuming a pay day of "last working day of the month".
I take the view that if you work 1st day of the month to last working day of month A, you'd need to be paid for that work on the last working day of month B. A couple of scenarios which come to mind:
So I suppose that my understanding of "monthly in arrears" is "one month after the working period has closed".
Three of my colleagues take the view that if you from work 1st day of the month to last working day of month A, monthly in arrears means you are paid on that same last working day of month A, but I can't see how that would work for the above reasons.
So I suppose that their understanding of "monthly in arrears" is "at the end of the working period".
What's the correct definition?
Bank of six chaps, all contractors, we have a 50/50 split on what we think we mean by monthly in arrears.
Assuming a pay day of "last working day of the month".
I take the view that if you work 1st day of the month to last working day of month A, you'd need to be paid for that work on the last working day of month B. A couple of scenarios which come to mind:
- because payroll would need time to process your attendance, i.e. you might have had a week's holiday and a day off sick
- because you're not leaving enough time for BACS to get the money out to the employee on pay day if you're processing your pay run actually on pay day
So I suppose that my understanding of "monthly in arrears" is "one month after the working period has closed".
Three of my colleagues take the view that if you from work 1st day of the month to last working day of month A, monthly in arrears means you are paid on that same last working day of month A, but I can't see how that would work for the above reasons.
So I suppose that their understanding of "monthly in arrears" is "at the end of the working period".
What's the correct definition?
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