How does payroll actually work

[UKSBD]

People I work for ran payroll today with a process date of 31/03/2026

It has Overtime hours, but how does the payroll person know how many overtime hours I will have done before 31/03/2026? or would these overtime hours be from previous month (Feb), and March overtime hours will go on the next payroll?

 

[Newchodge]

People I work for ran payroll today with a process date of 31/03/2026

It has Overtime hours, but how does the payroll person know how many overtime hours I will have done before 31/03/2026? or would these overtime hours be from previous month (Feb), and March overtime hours will go on the next payroll?

Probably. Your contract should explain the cut off date for payment. Or else ask your employer. It is not a process date, but a payment date.

 

[numbersrule]

My understanding is there is normally three dates, those being

1. Cut off
2. Processing
3. Payment

Sometimes the Cut Off and the Processing can become blurred by people trying to add data or correct errors right up until the last minute before processing.

23rd is not unusual for processing monthly payroll.

Cut off may have been Friday.

 

[UKSBD]

I was correct in my assumption that the overtime hours go on the following months payroll

ie.
50 hours of overtime done in February appears on March's payroll to be paid on 31st March

Leads to another question though.

I will do similar overtime in March, which will go on Aprils payroll to be paid at end of April - What is the tax point for this, will it be in 2025/26 or 26/27

 

[Newchodge]

I was correct in my assumption that the overtime hours go on the following months payroll

ie.
50 hours of overtime done in February appears on March's payroll to be paid on 31st March

Leads to another question though.

I will do similar overtime in March, which will go on Aprils payroll to be paid at end of April - What is the tax point for this, will it be in 2025/26 or 26/27

Tax point is the date you are paid, not the date you did the work being paid for.

 

[UKSBD]

Tax point is the date you are paid, not the date you did the work being paid for.

Thanks,
what about minimum wage, is that based on when work was done, rather than payment date?

ie. if doing 50 yours in March, but paid in April is it still the 2025/26 minimum wage rate, even though it is paid in next tax year and after minimum wage rates change?

 

[Newchodge]

Thanks,
what about minimum wage, is that based on when work was done, rather than payment date?

ie. if doing 50 yours in March, but paid in April is it still the 2025/26 minimum wage rate, even though it is paid in next tax year and after minimum wage rates change?

Minimum wage rate is paid according to the pay reference period (PRP). That is the time for which you are being paid, maximum one calendar month. In your case the PRP is the calendar month. NMW rates apply at the rate that was payable on the first day of the PRP when the work was done. NMW increases with effect from 1 April, so all work done in the April PRP should be paid at the new rate. The March overtime can be paid at the old rate.

If an employer pays 4-weekly they may have a PRP that starts on 06 April, so their staff don't get the NMW increase until the PRP that starts on 4 May.

Incidentally it is a criminal offence not to pay at least NMW for all work done in PRP by the end of the following PRP.