Employment Status: Casual, Occasional, Etc

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Employment Status: Casual, Occasional, Etc

1st April 2019

IRIS Payroll Business, IRIS Bureau Payroll

What effect do the employment status options have on payroll calculations?

Employment Status can have an effect on the way IRIS Payroll deals with tax and National Insurance. The options available are:

Normal

This is the default setting for employees who work for you all the time. 

Casual

For employees who work for you from time-to-time and to whom you do not issue a P45 after a short spell of work. If the employee is processed with zero gross pay, they will receive a tax rebate.

Occasional

This is similar to Casual. The difference is that, if the employee is processed with zero gross pay, they will NOT receive a tax rebate.

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

Additional Options

Construction

Employees who are part of a construction industry holiday scheme do not pay NI on holiday pay. Selecting Construction in the Employment Status field means that any holiday pay entered for this employee is classified as not subject to NI.

Deceased

Use this for someone who dies while still employed. Further payments in the name of someone who has died are not liable to National Insurance deductions.

Student

Students do not normally pay Income Tax (because their incomes are usually below the Income Tax Threshold) so the tax code issued by HMRC for a student is usually NT.