POLICY AND PROCEDURE FOR MAKING MANUAL SALARY / EXPENSES PAYMENTS

Transcription

1 POLICY AND PROCEDURE FOR MAKING MANUAL SALARY / EXPENSES PAYMENTS Reference number: HR 005 Title: Version number: Policy Approved by: Date of Approval: Policy and Procedure for making Manual Salary / Expenses Payments Date Issued: August 2009 Review Date: July 2012 Document Author: Director: Human Resources

2 Table of Contents page no. Policy Reference Information 3 Document Revision Record 3 1. Introduction 4 2. Action in Cases of Underpayment 4 3. Raising a Manual Payment 5 4. Method of Manual Payments 5 5. Processing of Payments 6 6. Ways to Avoid Underpayments of Salary 6 Appendix 1 Manual Payment Request Form 7 August 2009 Leicester City Community Health Service Page 2 of 7

3 Policy Reference Information Policy Reference Number: Version Number: Status: Committee/Group Responsible: Author/Lead: Human Resources Implementation Date: Links to other policies/documents: Date of Last Review: Date of Next Formal Review: Ver Description of Change(s) Document Revision Record Reason for Change Author Date August 2009 Leicester City Community Health Service Page 3 of 7

4 1. Introduction 1.1 This policy outlines the process for arranging manual payments and the responsibilities for ensuring a clear and consistent approach. 2. Action in Cases of Underpayment 2.1 If an employee is underpaid the line manager concerned (with assistance as necessary from Human Resources) is responsible for ascertaining the reason for the underpayment. 2.2 If the underpayment is for one of the following reasons then the underpayment will normally be rectified in the following month and a manual payment will not be raised: Where a change of circumstances form (HR2) is received in the Human Resources Department after the deadline for inputting, this will not normally warrant a manual payment. Where an overtime enhancement form (PCF2) or an expenses claim form (PCF4) is received by Payroll services after the prescribed deadline Where forms are received before the deadline but are incorrectly completed and have to be returned for correction and so subsequently miss the deadline 2.3 If the underpayment is for any other reason other than those mentioned in 2.2 above then the Human Resources Department and the manager will investigate where the error or oversight leading to the underpayment occurred and assess the necessity to raise a manual payment or agree to process underpayment through normal payment the following month. 2.4 Where an employee fails to provide sufficient notice to Payroll Services of any changes to their bank/building society account details and a payment is made into the wrong account the employee must notify their bank/building society and upon confirmation that the monies have returned to the Trust, a manual payment equivalent to the basic net salary will be made. 2.5 Bank Staff with a Bank post only (those staff who do not hold a substantive contract) will have a manual payment raised following investigation by the line manager/human Resources for the reasons for non-payment of salary. 2.6 Where the employee has received his or her basic pay (and unless the under-payment is very significant in terms of total pay), as a norm no manual payments will be made by cheque or BACS for less than 100, August 2009 Leicester City Community Health Service Page 4 of 7

5 however the Human Resources department with the line manager will consider cases on individual basis and of the impact the non-payment of the underpayment to individual circumstances. 2.7 Where it is agreed to raise a manual payment, the process in section 3 below must be followed. 3. Raising a Manual Payment 3.1 Human Resources Staff will be responsible for instigating the manual payment by completing the Manual Payment Request form (Appendix 1). 3.2 A gross estimate of the amount of the under-payment will be calculated and 60% of the gross amount will be raised in a manual payment (to allow for tax, NI and superannuation deductions, which will be calculated and deducted when the under-payment is rectified in the next payroll run). Any adjustments to the exact deductions will be made the following month. 3.3 Where it is agreed to pay an underpayment of expenses, these will be authorised at 100% of the estimated under-payments. Expenses claims under-payments are not subject to tax, NI or superannuation deductions. 3.4 Employees will be notified that the payment is an advance of salary and/or expenses. The under payment will be processed in the following month and the advance will be shown on the payslip as a recovery. 3.5 Human Resources Staff will be responsible for ensuring that the correctly completed Change of Circumstances, timesheet(s) or expenses claim form is processed by Payroll Services in time for the next payroll cut off, so that the recovery of the manual payment is made against the relevant actual payment. 4. Method of Manual Payments 4.1 Manual payments will normally be made by BACS directly into the employee s bank/building society account. This will be on the next available weekly payment run (i.e. not chaps). Payments by BACS are more secure than cheque payments and, given the time required to raise a cheque and for this to then clear through a bank/building society account, BACS payments will provide employees with faster access to their money. 4.2 Only in very exceptional circumstances will a manual payment be made by cheque. August 2009 Leicester City Community Health Service Page 5 of 7

6 5. Processing of Payments 5.1 On receipt of the Manual Payment Request form, Financial Shared Services payments department will process a BACS or cheque payment, as appropriate, and send a copy of BACS remittance advice or a cheque to the employee s home address shown on the form. A Chaps payment will be raised by the Trust finance department. 5.2 Human Resources staff will liaise with Payroll Services to ensure that the advance is recovered in the next month s salary. 6. Ways to Avoid Underpayments of Salary 6.1 All employees and line managers are responsible for ensuring that all payroll related documents are fully completed, duly authorised and submitted in time to meet the payroll processing deadlines in order to avoid any underpayments of salary as follows: All contractual changes (e.g. changes of hours, promotions etc.) must be notified to the Human Resources Department using the Change of Circumstances Form (HR2). Termination of employment must be notified by completing the Notice of Termination Form (HR4) and submitted to the Human Resources Department. Overtime and Enhancement payments must be notified by completing the Overtime and Enhancement Monthly Claim Form (PCF2) and must be sent to Payroll Services. Bank hours worked must be completed on the Bank Hours Monthly Claim Form (PCF6) and submitted to Payroll Services. Expenses must be claimed using the Expenses Claim Form (PCF4) and submitted directly to Payroll Services. Bank/Building Society account changes must be notified by completing the tear off slip from the payslip and submitted to Payroll Services. 6.2 Managers must ensure that, in their absence, employees are aware of who else can authorise payroll-related documents, so as not to delay submission. 6.3 Managers must ensure that staff are made aware of all payroll and expenses processing deadlines, but in particular the December payroll processing deadline and payday, which varies from the norm. Timetable for payroll cut off dates are available from the Human Resources Department. August 2009 Leicester City Community Health Service Page 6 of 7

7 APPENDIX 1 Manual Payment Request Employee Details (1) Employee Name Job title Employee s full postal address including post code Assignment Number Employee contact details Account Name/Payee name Bank Sort Code Account Number Bank Name and full address Bank Details (2) For the attention of the employee (3) This form has been completed by Human Resources Department for a 60% 100% (please tick) manual payment to be made payable to you in your Bank Account. Where a payment is made by a cheque the cheque will be sent to your postal address detailed above. The manual payment will be shown as a lump sum deduction on your next salary unless alternative arrangements have been agreed. Amount payable (4) - Date required Manual Payment Method (5) (Mark relevant box with X) Other Crossed Cheque BACS CHAPS Month (s) to be recovered: Manual Payment Cause (6) (Mark relevant box with X) Internal payroll error HR error/management error Incorrect data received Other (detail below) Other: Requested by (HR) Authorised by (HR) Processed by (Finance) Name Authorisation (7) Date Cost code Manager e mail Manager tel no. For the attention of Payroll Services (8) The above manual payment has been raised as an advance. Please deduct the amount as a lump sum in the next salary unless advised differently as outlined in Section 5 above. August 2009 Leicester City Community Health Service Page 7 of 7