Employers are required to indicate into which HMRC pre-determined list of hourly bands each employee's normal working week falls.
This reports to HMRC the number of weekly contracted hours the employee is contracted to work, as opposed to the actual hours worked per week. Thus, this field should not require amendment unless there is an amendment to the employee's contract.
The current hourly bands to use are:
A Less than 16 hours
B 16 hours or more, but less than 24 hours
C 24 hours or more, but less than 30 hours
D 30 hours or more
'E Other' should only be used, for example, for workers on zero hour contracts, no set hours or pensioners being paid a company retirement pension or annuity.
It is important to record the correct number of hours your employee has worked to help ensure they receive the right amount of benefits and tax credits they are entitled to.
To assign the correct hourly band:
Choose the Employee menu
Select the employee from the employee listing on the left menu.
Once the employee is selected, choose the 'Tax, NICs, RTI' option within the employee record.
Please note: The hourly band selected has no bearing on the actual payroll hours paid to the employee.
From the HMRC listing of hourly bands, band 'E Other' applies to employees who are not paid on a regular basis for example:
casual or seasonal employees
employees on maternity leave
employees on long term sick leave
any employee who for any reason will not be paid for a period of three months or more
HMRC will check if an employee has not been paid for a certain period of time and will treat them as having left that employment. Setting this indicator on every FPS submitted for that employee avoids that happening.
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