Statutory Period Schedule

While setting up your company profile on Sprout Payroll, have you ever wondered what the Statutory Period Schedule is all about? We know that this section is to be set-up according to your company's payroll period, but is that all there is? Think again!

 

The Statutory Period Schedule is the basis of the statutory report as well as the computation of your employees' government contributions. In your Company Profile, there are two options to choose from: Regular and Irregular.  These would refer to payroll periods that fall within the month or cross-over to succeeding months. If the payroll periods are from 1-15 and 16-30, the Statutory Period Schedule should be set to Regular, and any deviance from this should be set to Irregular. 

 

 

For example, the payroll period for your company is set to 26-10 and 11-25. This would mean that the cut-off for your first payroll period is from the 26th of the previous month until the 10th of the current month, and your second payroll period is from the 11th to the 25th of the same month. Given this, your Statutory Period Schedule should be set to Irregular in order to avoid discrepancies in the statutory report and the computation of the government contributions. 

 

Another example of an Irregular Statutory Period Schedule would be if your cut-off would range from 1 to 15 and 16 to the end of the month. This is if the first payroll period is from the 16th to the 30th of the previous month and second payroll period would be from the 1st to 15th of the current month. Now, why is this so? This is because the system recognizes it as different from the Regular setting wherein the first payroll period is from the 1st to 15th and the second from 16th to 30th. As such, any deviance from the parameters of a Regular setting should be set to Irregular.