Hours on Payslip and hourly rate

[gupta33v]

Hello dear fellow members,

Once again I need your valuable feedback / comments on the below situations:

1. I had 4 employees, all aged under 25, I was paying them national minimum wage of £7.20, but upon calculation from payslips, all of them were getting £7.196, not £7.20 exactly, does that mean I would not qualify for full time job creation now. National minimum wage is less for under 25 people but I am still confused!

2. On payslips, hours worked each month are same, for example 150 hours each month, this is due to the accountant calculating the hours on yearly basis and then dividing it by number of months, not on monthly basis where the hours and the monthly wages fluctuate on basis of number of working days in a month, would that be an issue as to HO could or would say this isn't right / correct? I am very much confused about this as I have mixed opinion from some people I know!

3. Based on the above (point 2), accountant said I don't have to pay any holiday pay (legal 28 days a year) and sick leave pay to the employees as they have been covered in his yearly calculation of hours (a set number of hours in a month i.e. 150 a month). Is this correct? Because I understand if one takes a leave for a week for example than the wages should go down as well.

Please help guys! Much appreciated!

Thanks

[zimba]

1. I had 4 employees, all aged under 25, I was paying them national minimum wage of £7.20, but upon calculation from payslips, all of them were getting £7.196, not £7.20 exactly, does that mean I would not qualify for full time job creation now. National minimum wage is less for under 25 people but I am still confused!

No, the hours worked per week determines that. Min wage for under 25 years old is currently at £5.55 per hour

2. On payslips, hours worked each month are same, for example 150 hours each month, this is due to the accountant calculating the hours on yearly basis and then dividing it by number of months, not on monthly basis where the hours and the monthly wages fluctuate on basis of number of working days in a month, would that be an issue as to HO could or would say this isn't right / correct? I am very much confused about this as I have mixed opinion from some people I know!

That is fine, HO guide is 30 hours a week. Divided the total yearly hours by 52 and that is what they worked per week. HO accepts 30 hours a week to be full time. Hours beyond that are discarded

3. Based on the above (point 2), accountant said I don't have to pay any holiday pay (legal 28 days a year) and sick leave pay to the employees as they have been covered in his yearly calculation of hours (a set number of hours in a month i.e. 150 a month). Is this correct? Because I understand if one takes a leave for a week for example than the wages should go down as well.

Not really. You should obviously treat paid sick days and statuary holiday entitlements as if they were paid work days. Only unpaid leave should be deducted from your hours.

[seasky]

£5.55 is for 18-20s

[zimba]

£5.55 is for 18-20s

You are right. The full information for 2016 hourly min wages are:

Over 25: £7.20 | 21-14 years: £6.95 | 18-20 years: £5.55 | under 18: £4.00 | Apprentice: £3.40

[Meesha]

Hi Zimba,
As you said the hours over 30/week are discarded.
I calculated hours as 52*30=1560 and 1560/12=130. So I made a fixed salary for 130 hours/month. I am super confused about this calculations now. Let's say if during some short months like February hours/week are more than 130 and for other months its less than 130 hours/month. It means for February the extra hours for those particular weeks will be discarded and at the end, I will be short of hours for longer months.
Please clear me if I did the right calculations i:e 52*30=1560 and 1560/12=130?

[gupta33v]

Thanks Zimba and Seasky for taking the time and sharing your thoughts. Really appreciate it.

Sorry Meesha, I hope I could help you out with your query but I don't know the answer. Hopefully Zimba, Seasky or any wise person here would be able to help you like they are helping me

I have another question which isn't related to the title of this thread and I am not sure if I may start a new thread for it or should I keep all my questions under one thread! Apologies in advance to the moderators if this isn't right to do so

My questions are:

With the extension application, do we have to submit the employees employment contract to prove their job titles, number of hours they would be working in business and their salary rates and stuff? I got my visa after April 2014 and in my business one employee left and another person started for the same position, this info is not on payslip as to about their job titles, so do I have to send their contract of employment to HO. If yes, than do I have to send the actual copies signed by the employed or the templated ones which I asked them to sign would do as well? I have lost a signed copy of a previous employee and their whereabouts are not known to me now so I do not have the signed copy of the contract of employment for this employee!

A friend lawyer was saying to me I should submit their CV as well. I don't think this is a requirement?

Thanks

[Meesha]

Hi,
I did not submit any contracts as this was not required. It is for genuineness to submit contracts. Job titles can be mentioned in application form table. Seniors can advise better though.

[zimba]

With the extension application, do we have to submit the employees employment contract to prove their job titles, number of hours they would be working in business and their salary rates and stuff? I got my visa after April 2014 and in my business one employee left and another person started for the same position, this info is not on payslip as to about their job titles, so do I have to send their contract of employment to HO. If yes, than do I have to send the actual copies signed by the employed or the templated ones which I asked them to sign would do as well? I have lost a signed copy of a previous employee and their whereabouts are not known to me now so I do not have the signed copy of the contract of employment for this employee!

Why are you not trusting the guide and the rules ????? Please READ the guide. If something is NOT required, then you do NOT need to send it.

[gupta33v]

Thanks Zimba for you reply.

Yeah I know the guidance gives all the information but different people tell you different things and it just confuses me

Could I please ask another question, hopes its okay with you.

My business did make a good profit in year 1 and year 2. Business didn't really need the investment, but as a prime requirement for extension I did transfer the money in one go 10 months prior to extension. Do you think it would be an issue as to why did I invested the money in one go, not in 2 or 3 parts and why 10 months prior to extension date!

Thanks

[zimba]

Yeah I know the guidance gives all the information but different people tell you different things and it just confuses me

Ignore people, only listen to the guide and the rules

My business did make a good profit in year 1 and year 2. Business didn't really need the investment, but as a prime requirement for extension I did transfer the money in one go 10 months prior to extension. Do you think it would be an issue as to why did I invested the money in one go, not in 2 or 3 parts and why 10 months prior to extension date!

No issues