Extra pay run

If you pay your employees weekly, two weekly or four weekly and your normal process date falls on 31 December, than you have an extra pay run. This is because the number of days in the tax year doesn’t divide into a whole number of tax weeks. Monthly paid employees never have an extra pay run.

Check if you have an extra pay run

  • 1. Go to the Settings tab, then click Calendar Settings.
  • 2. Click View Pay Calendar.

Extra pay runs appear as follows:

  • Weekly payrolls – Week 53.
  • Two weekly payrolls – 2-Week 27.
  • Four weekly payrolls – 4-Week 14.

If you have an extra pay run, you should process this as normal.

How tax and universal social charge (USC) calculates

To comply with government legislation, tax and USC calculates in an extra pay run on a week 1 basis.

This means that for the extra pay run only, tax and USC calculates on your employees’ gross pay, using a weekly pay adjustment at the current tax code and USC rates. You should not process any advance holiday pay for an extra pay run.

If an employee is paid fortnightly or four weekly, the two or four weekly pay adjustment applies.

All employees paid in an extra pay run should submit their p60s to Revenue. Any overpayment of tax or USC is taken into consideration when P2C tax credit allowances for the new year are issued.

Read more about payroll year end