The festive season brings unique challenges to payroll teams, from early pay dates to reduced processing days and additional bonuses. Effective planning and clear communication with stakeholders are critical to navigating this period successfully.
This Christmas payroll checklist includes:
The golden rule—prepare your payroll calendar
Use the table below to map out your payroll schedule for December and January, ensuring all key stakeholders are aligned. We’ve left a blank table for you to fill in with your team.
Communication template for stakeholders
Use this email template to inform stakeholders (e.g., employees and department heads) of the end-of-year payroll changes:
Subject Line: Important: End-of-year payroll schedule changes
Body:
Dear [Recipient],
As we approach the festive season, we’d like to inform you about important changes to our payroll schedule for December:
- Early pay date: Payments will be processed on [new pay date] instead of the usual [regular pay date].
- Data submission deadline: All timesheets, overtime records, and bonus approvals must be submitted by [specific date], to ensure inclusion within the early December payment run.
- Contact details: For any questions, please reach out to [contact person] at [email/phone number].
These changes ensure payroll is processed smoothly during this busy period. Your cooperation in meeting the deadlines above is greatly appreciated.
Thank you,
[Your Name]
[Your Position]
Best practices for managing end-of-year payroll
1. Start early: Begin planning in November to accommodate revised timelines.
2. Communicate clearly: Share the payroll calendar and key changes with all stakeholders as soon as possible.
3. Leverage automation: Use tools like Modulr to automate processes, reduce errors, and enable real-time payments—even during bank holidays.
4. Prepare for bonuses: Factor in any additional payments, such as seasonal bonuses or overtime, and ensure they’re included in your payroll schedule.
5. Review and test: Double-check payment schedules and test Faster Payments to avoid errors during the crunch period.
"The golden rule for managing end-of-year payroll is preparation. A detailed payroll calendar—planned well in advance—ensures all stakeholders know the revised deadlines, the information required, and the adjusted pay dates."
— Dan Daly, Partner, RDA Accountants
