Going from day rate to a salary

[RockyBalboa]

I'm likely to bring on board someone who will be paid a day rate for two days per week for a period of 3 months and then convert to full time at a regular salary.

The accountant should take care of this but they're off at the moment and I just wanted to know how it works from a PAYE paperwork perspective. Does the accountant/payroll simply just enter the day rate into their Payroll system and voila?

[Beetnik]

I can't speak for your accountant but I'd do it as (e.g. works Mondays and Tuesdays):

May:
10 days @ day rate: £200 --> Gross £2,000

June:
8 days @ day rate: £200 --> Gross £1,600

rather than say Salary £1800 each month.

Tax & NICs will vary from month to month dependent on the number of days worked in the month and hence the gross paid.

[Countdown]

RockyBalboa said:

I'm likely to bring on board someone who will be paid a day rate for two days per week for a period of 3 months and then convert to full time at a regular salary.

The accountant should take care of this but they're off at the moment and I just wanted to know how it works from a PAYE paperwork perspective. Does the accountant/payroll simply just enter the day rate into their Payroll system and voila?

Assuming they are working a fixed 2 days per week they would just enter them on Payroll as 0.4fte (and then change them to 1.0fte after 3 months)

[OutInTheShed]

To me 'day rate' usually implies 'contractor'.

So day rate is often higher because no sick pay, holiday pay etc

So I'd want to be clear if that's the situation or as said above it's 2/5 FTE accruing holiday & pension at 2/5 and all that.