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What is the difference between a Casual employee and an Occasional employee?

Article ID
11909
Article Name
What is the difference between a Casual employee and an Occasional employee?
Created Date
6th April 2017
Product
IRIS Payroll Professional, Earnie
Problem

What option should I choose for "Employment Status", Casual or Occasional?

Resolution

This option will affect the way the system deals with the tax and NI calculations for employees who are not paid every pay period.

Tax and NI for both casual and occasional employees works on what they are paid for their pay period irrespective of when they were last paid. 

For National Insurance, casual and occasional are treated the same. The NI will be calculated on only the period they are being paid for.

The difference occurs in the Tax calculation. For an occasional employee, if there is no gross pay in a payroll period, the employee will be skipped and no tax refunds due would be given, no payslips produced.  Any adjustment in the tax calculation will be applied when you next processes gross taxable pay for the employee.

An employee with casual status would receive a tax rebate, if due, when processed through the payroll with zero Gross Pay.

Which option you select would depend on the employee’s contract of employment.

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