InPay. Real Time Information. Page 1 of 11

Transcription

1 InPay Real Time Information Page 1 of 11

2 Table of Contents Table of Contents... 2 Introduction... 3 FORMAT 1 - Employer Alignment Submission... 4 Creation... 4 Viewing and Submission... 5 FORMAT 2 Full Payment Submission & Full Payment Submission (FIRST)... 6 Creation... 6 Viewing and Submission... 8 Multiple Submission... 8 FORMAT 3 Employer Payment Submission... 9 Creation... 9 Viewing and Submission Additional Information Payroll Alignment Amendments (EAS & First FPS) Bacs Format Page 2 of 11

3 Introduction From April 2013, the way the HMRC are notified about Employee s and Employer s PAYE liabilities is changing (although companies with greater than 5000 workers won t need to start submissions until June September 2013). At present the only time that detailed information is submitted to the HMRC is at Year End in the form of P14s for each employee and a P35 showing aggregated company level information. Outside of this the only other data a company is required to submit is when an employee starts or leaves their employment via a P45(1), P45(3) and P46 submission. InPay currently provides all of this functionality through the HMRC Submission screen which InPay users will know well. This guide intends to take the user through the changes in data submissions that will be required from April 2013 under what is termed RTI (Real Time Information). It is important to note that it is how an employee s pay is reported to the HMRC which is changing from April 2013 and not how pay is processed and calculated. As such there is only a small amount of additional information that is required under RTI. All additional requirements will be discussed at relevant points throughout this document. A one off submission is required for the first RTI submission. This is so the records on the payroll system can be aligned with the records held at HMRC. This will include the personal information of all employees that are current or have a leaving date on or after 6 April The HMRC have determined that this data can be submitted in 1 of 2 formats. The first of which (Format 1) will apply to companies that have greater than 250 workers or have their payroll calculated on more than one payroll system (i.e. would previously have submitted P14s in multiple parts). This submission is called the Employer Alignment Submission (EAS) and is explained below. Otherwise the employee s personal details will be included in the First Full Payment Submission which is discussed under (Format 2). In order that the data sent to the HMRC in the alignment process is accurate, a new Employee Basic Data Importer has been added to the system. This allows the updating of Forename, NINumber, Title, Sex, Work , Address, Date of Birth and National Insurance Number details as well as the new Hours Worked and Irregular Payments fields HMRC advice on data quality can be found here EVEN IF YOU ARE NOT REQUIRED TO SEND AN EMPLOYER ALIGNMENT SUBMISSION PLEASE READ BELOW AS THE SAME DATA REQUIRMENTS WILL BE REQUIRED ON AN EMPLOYERS FIRST FULL PAYMENT SUBMISSION Page 3 of 11

4 FORMAT 1 - Employer Alignment Submission Creation As discussed above, this submission includes only personal details, similar to the information sent in an electronic P45 or P46. The screenshot below shows a user selecting this option from the list of submission types on the RTI screen (Processing > RTI Submission > Click the New button). The EAS applies to all employees on the system for that company and applies to the tax year 2013/14, the only additional information that the user is required to provide is as follows: Filename The Filename of the created submission. Number of Parts Where a company runs it s payrolls from multiple systems the total number of parts is required and in this scenario the submission will also be given an identification tag. In all other scenarios the number should be left as the default of one. Figure 1 Employer Alignment Submission The submission will be created from data stored within InPay. However the users should be aware of the following fields that are either new or were not required previously: Accounts Office Reference This information stored with the Tax District No and Employer s Reference is now required on ALL submissions and will fail validation if the field has not been populated within InPay. Irregular Employment This field is now included in the Starter screen and on the Employee General screen and should be populated if the employee is paid on an irregular basis, for example casual or seasonal employees whose employment contract continues or employees on maternity leave, long term sick leave or leave of absence and will not be paid for a period of three months or more. HMRC will check if employees have not been paid for a specific period of time and will treat them as having left that employment. Expat Indicator - Indicate Yes if then employee is seconded to work in the UK. This needs to be specified in InPay by creating an Expat record on the P46 screen. Page 4 of 11

5 Foreign Country A foreign country field has been added to the employee s address and should be populated instead of postcode if the employee s address is abroad. Viewing and Submission As was the case when creating HMRC submissions pre-rti, after creating a new file, the user is taken back to the list of all created RTI submissions with the most recently created submission displayed at the top of the list with a status of Not Submitted. Figure 2 RTI Submissions List After clicking on this record, the user has the following options: Send - Submit the file. View Creates a user friendly view of the file created on the screen. Delete Allows deletion of the file (This option is unavailable if the file has been successfully submitted or is in the process of being submitted). Archive Allows the archiving of the file which will clear the data from the list, but not remove any data. Figure 3 RTI Submission Options Page 5 of 11

6 FORMAT 2 Full Payment Submission & Full Payment Submission (FIRST) Creation A Full Payment submission needs to be electronically submitted to the HMRC every time payments are made to employees. It contains detailed information on each payment to each employee. On the first submission, the HMRC also require information with regard to every employee who has been paid in the 2013/14 Tax Year, and, where no Employer Alignment Submission has been sent (see FORMAT 1), the employees personal details. A separate format has been created to clearly specify the FIRST submission. Users must create a First FPS for each payroll on or before the first pay date. Together with the filename parameter discussed in FORMAT 1, the FPS has the following 2 parameters: Payroll The payroll to which the file relates. BACS File For companies that pay their staff through Direct BACS a reference is added to each record in the FPS file, this relates to the payment row in the BACS file. InPay does all this automatically but requires the BACs file to be selected in order to know which file to cross reference. Companies that do not pay their staff by Direct BACS should leave this field blank.* Pick Employees This field should only be used in very rare scenarios as discussed under the multiple submissions section. Final Submission of Year If this is to be the last FPS of the year or the last FPS for a company that has ceased trading and there is to be no EPS to follow, then details need to be sent answering a series of questions similar to that answered on the current P35 declaration. Figure 4 Full Payment Submission with Final Submission of Year options Page 6 of 11

7 As is the case with the EAS, discussed above, all the information submitted via the FPS will already be stored in InPay. Users should be aware of the further additional information which the system now captures which will be provided in the submission. Passport Number This is not currently mandatory but will be included in the submission if specified. The field can be found on the Starter and Employee General Screens. Partners Surname and Partners National Insurance Number - These 2 fields become mandatory where Additional Paternity leave is being claimed and should be added with the rest of the ASPP details on the Absence Screen. Seconded Previously InPay did not allow the submission of P46 (Expat) forms. Functionality has been added to the P46 screen to capture information on seconded employees and where applicable this will be added to the FPS when an employee starts. Employee Number changes The HMRC will be informed via the FPS when Employee Numbers are changed. This can be done through the InPay Employee General Screen as is the case currently. Hours Worked This is a mandatory field in RTI and is populated from a list of 4 possible options. The field will be mandatory on the Employee Starter Screen and can be updated on the Employee General Screen. Employee Pensions The HMRC require that they are informed of the deduction of pension contributions for each employee and whether they are deducted under the Net Pay arrangements. InPay will populate these fields automatically, however, in order that this is recorded correctly all pension deductions must be entered through the InPay Pension Screens (excludes Salary Sacrifice Pensions which are not included in the FPS). Benefits in Kind - For RTI purposes the HMRC require qualification of all benefits that are taxed via payroll. Currently although this is accomplished in InPay by adding a taxable element and then offsetting the amount on a non-taxable element there is no way to specify that this is for the purpose of taxing benefits. A new tick box has been added to the Pay Elements screen to indicate a Benefit in Kind. This pay element must be taxable, non nicable and be offset by a non-taxable pay element. On Strike The HMRC require that they are informed if an employee is on strike during a pay period. This should be entered in InPay via the Absence Entry screen by adding an Unpaid Leave record with a leave reason of On Strike. Unpaid Absence - The HMRC require that they are informed if an employee s pay has been reduced during the pay period due to unpaid absence. This should be entered in InPay via the Absence Entry screen by adding an Unpaid Leave record with a leave reason of Unpaid Leave. Page 7 of 11

8 Viewing and Submission As is the case with the EAS, after creating a new FPS the user will be taken back to the list of created files and have the same options available in addition to the following: Report This creates a PDF report of the data contained in the file and allows a quick cross check that the figures are as expected. Figure 5 RTI Submissions Report Multiple Submission It is expected that for a normal payroll run that one FPS will be sent on or before payment date and include all payments for the period. However there are certain scenarios where multiple files may be sent (for example where some employees are paid early). InPay ascertains which employees to include in the submission based on employees whose pay is different to that submitted via the FPS previously in the period. In order to control this an FPS can only be produced if there are no other FPS s in the period with a status of Not Submitted. As can be seen on the earlier screenshot the FPS also allows the user to pick employees to include in the submission. This will override the normal functionality which only picks up employees which have been paid in the period. This functionality should only be used under the following scenario An employee s previously taxable or nicable YTD figures have been submitted incorrectly though not affecting the employee s pay and you are not expecting the employee to have any further payments in the tax year Page 8 of 11

9 FORMAT 3 Employer Payment Submission Creation The HMRC derives all the information it requires with regard to Tax, National Insurance contributions and Student Loan repayments from the FPS files that are sent prior to each and every payment. The EPS, therefore, allows the employer to notify the HMRC of the reductions it is allowed to make to the totals already submitted via the FPS. The EPS must be sent by the nineteenth of the tax month following the one where the reductions were made. The HMRC will then expect the monthly or quarterly payment to be the sum of the payments due from the FPS less the reductions notified via the EPS. Although the EPS is to be sent for each tax month, the actual figures that must be provided are year to date. The HMRC then calculates the reductions due by working out the difference between the year to date figures for the current period and the figures for the previous period. Unlike the EAS and FPS, submissions are taken as a current snapshot of the data in the system. The EPS is run by tax month and has the following additional parameters: Year The associated tax year. Period The associated period (A period from 1 to 12 with 1 representing 6 th April 5 th May. Final Submission of Year If this is to be the last EPS of the year (discussed within the FPS section). Figure 6 Employer Payment Summary Upon clicking Generate, unlike the EAS and the FPS where the file is created, there is an intermediate stage where the year to date figures that are reclaimable are populated on screen and allow editing. The figures will be calculated by adding the values from the last EPS successfully sent for a previous period together with the reclaimable figures in InPay for the selected month. Page 9 of 11

10 Figure 7 EPS Intermediate Stage An EPS also needs to be created to inform the HMRC if there are to be no payments made to employees and therefore no FPSs within a tax month. If there is a period where no payments are made, the user has 2 options. If the nonpayment period was in the past then these dates should be entered into the first row of boxes with the end date being the 5 th of the tax month that has just ended. However if the employer is aware that there will be a period of inactivity in the current or future periods of the tax year then these should be entered in the second row of date input boxes. Once any required changes have been made, the Generate button should be reclicked. This will create the EPS file and the screen will show the list of files that have been generated. Viewing and Submission As is the case with the EAS, upon creation the user will be taken back to the list of created files and have the same options available. Page 10 of 11

11 Additional Information Payroll Alignment Amendments (EAS & First FPS) Once personal details (Name, Address, Date of Birth, National Insurance Number) have been sent via the EAS or the first FPS, any subsequent amendment to personal details will not be picked up from the FPS and employee s will need to contact the HMRC directly. Bacs Format Additional Bacs Formats have been added which include the additional reference required for RTI. These formats can be selected in the normal Company > Bacs Parameters screen. Each original format has an equivalent one that includes the reference. The Bacs format should only be changed where clients pay by Direct BACS Page 11 of 11