Direct Payment payroll hand-off: inputs, deadlines and checks
Exactly what to send a PA payroll provider, when to send it and how to deal with corrections without creating duplicate versions.
For Direct Payment employers, payroll providers and support teams
In brief
- The employer approves source information; the payroll provider calculates pay and submits payroll returns.
- Every payroll pack should identify the employee, pay period, approved hours, leave, authorised adjustments and leaver or starter changes.
- Check payroll outputs against the approved inputs before making payments.
Agree the service before the first payroll
Ask the provider for its cut-off, accepted format, secure submission route, correction process and list of responsibilities. Confirm whether it handles pension assessment, pension uploads, HMRC payments, statutory-pay calculations and year-end documents, because service packages differ.
| Question | Why it matters |
|---|---|
| What is the input cut-off and payday? | Sets the employer's internal timesheet and approval dates. |
| Who pays HMRC and the pension scheme? | Prevents a liability report being mistaken for a completed payment. |
| What file or portal fields are required? | Avoids free-text emails and missing payroll categories. |
| How are corrections submitted? | Prevents duplicate files and unofficial cash adjustments. |
| Which reports are returned? | Defines what the employer can check and retain for council evidence. |
Build one complete payroll pack
- —Employer and payroll-account reference.
- —Pay-period dates and intended payday.
- —One approved timesheet per PA, with basic hours separate from premiums and sleep-ins.
- —Approved holiday, sickness and other paid or unpaid leave using the provider's categories.
- —Authorised mileage or expenses kept separate from pay.
- —Starter details: start date, P45 or Starter Checklist information and pension assessment data.
- —Leaver details: final working date, notice information and confirmed final source inputs.
- —Changes effective in the period: pay rate, contracted hours, address or other payroll-relevant information.
- —A named employer approval and submission timestamp.
Use a backward plan
This is an example, not a statutory timetable. The provider's contractual cut-off controls the operational schedule. HMRC's key deadline is that the Full Payment Submission is normally made on or before payday.
| When | Action |
|---|---|
| Previous Monday | Remind PAs that the period is closing and identify missing records. |
| Wednesday | PA submission deadline. |
| Thursday | Employer resolves exceptions and approves the period. |
| Friday | Employer submits one final payroll pack through the secure route. |
| When draft reports arrive | Employer checks names, hours, leave and obvious input differences. |
| Payday | Payslips issued and FPS filed on or before payday under the payroll arrangement. |
Check what comes back
- —Compare each PA's basic hours and payroll categories with the approved source record.
- —Check the gross-to-net report contains the expected employees and pay period.
- —Confirm payslips were issued on or before payday.
- —Identify the PAYE and employer National Insurance liability and who will make the payment.
- —Check the pension schedule against the scheme and provider arrangement.
- —Retain the payroll report, payslips, liability report and proof of payments with the period.
- —Ensure employees still employed on 5 April receive a P60 by 31 May.
Correct an error without creating a second truth
Tell the payroll provider the employee, original pay period, original value, corrected value and reason. Keep the original approved record, the correction request and the provider's revised output. The provider should determine the appropriate FPS or other correction mechanism.
Do not rename a changed spreadsheet 'final final', pay an informal difference in cash or alter a past payslip. If the correction affects a council submission, record where the revised evidence was supplied.
Understand the record boundary
The employer keeps the approved employment evidence. The payroll provider keeps and returns payroll records under the service. The council may request evidence of both for monitoring. Direct Payments HR can prepare and freeze approved inputs, but it does not calculate tax, National Insurance, pension contributions or statutory pay.
Sources and further guidance
These links are provided so readers can check the underlying official guidance. Local Direct Payment agreements and individual employment circumstances still need to be considered.