PAYE Settings

Use this screen to manage the organisations PAYE settings.

Date RTI FPS Last Filed

Enter the date of filing of the last FPS. This date will be updated by the system each time an FPS is successfully filed.

Date P11D Last Filed

Enter the date of filing of the last P11D's. This date will be updated by the system each time P11D's are successfully filed.

Small Employer Relief Case

The default condition is ticked only untick if it does not apply. If unsure consult with your advisor. Refer to www.gov.uk for information on current rates and thresholds applying to Small Employer Relief. As at 2020/2021 businesses paying less than £45,000 p.a. in National Insurance contributions were eligible for Small Employer Relief.

If the business is defined in the business profile as entitled to Small Employer Relief Liberty Accounts will calculate the SMP/SPP/SAP that may be recovered (100%) and the NIC compensation that may be claimed by the employer (3.0 %). Note that the calculation is applied as part of the payroll run so if your Small Employer status changes mid-year you should take professional advice.

If the user defines their business as not entitled to Small Employer Relief Liberty Accounts will calculate the SMP/SPP/SAP that may be recovered (92%) using the standard rate.

Claim Employment Allowance

For more help on the topic Payroll - Employment Allowance

If the organisation is in a sector that is entitled to state-aid, select the sector from the drop-down. This information is passed through to HMRC when the EPS is filed otherwise leave as Not Applicable. If the user is uncertain it is recommended that they consult their advisor as the Employment Allowance (which is now designated as state-aid) may be impacted.

Once the box is ticked an opportunity to set how the employment allowance is allocated to Funds/Branches or Activities is offered. Click on the green + symbol to enter a new allocation and select the analysis items from the Branches/Funds/Activities drop-down fields. Amend the % (percentage) field as required. Click the green + symbol again to other lines. Note the percentages must sum to 100%. Click SUBMIT to store.

As a capped benefit the Employment Allowance cannot be specific to any particular employee or particular payroll run it is not therefore included in the payroll costing allocation rules described below.

Note in the case of a Not-for-Profit organisation if no allocation is entered and there is no default Fund set finalising a payroll run will be prevented (with an error message) until at least one Fund is selected for cost allocation or a default fund set.

Tax Office/PAYE Reference

Your PAYE reference consists of the three digit tax office number followed by the employer reference supplied by the tax office. ( e.g. 123 / A12345 ). These field must be completed correctly if you are using online filing for PAYE.

PAYE Accounts Office Reference

The PAYE accounts office reference is another reference used by HMRC to track payments. It should not be confused with the PAYE employer reference. For RTI purposes this field is a required field. The information can be found on a 30BC payment booklet or P30B (Paying Electronically).

Tax Office Name and Address

Enter the address of the tax office with the tax office name on the first line.

Refunds

Enter details of a bank account into which any refunds from HMRC are to be paid

Payroll Run Defaults

Payroll run defaults will populate the relevant fields during payroll run processing.

Select a default payroll admin group from the drop-down.

Tick the Auto email payslips box to automatically email payslips to employees when the FPS for the pay run is successfully filed with HMRC.

To auto-post the salary payments tick the box. In the fields that appear select the bank account to post-to and whether individual or aggregate amounts are preferred.

Nominal Transfer Payroll Accounts

When a pay run is finalised the system posts a journal to record the various associated transactions to the accounts. The default accounts are displayed on this page but a user may set their own preferences. Simply amend each area as required.

For an account simply start typing an account name or, if activated, ledger code and the system will provide a list of potential selections; choose the required account by clicking on it. Alternatively click the icon to display a list and click on the account required. Note to change to other account-type options click the small down arrow at the base of the screen.

Wages (Liability): This account will hold the net pay due to employees and is a Liability Account
Staff Employer NIC: This account will hold the cost to the organisation of the Employers National Insurance contribution, it is an Expense account
Office Holder Employer NIC): This account will hold the cost to the organisation of the Employers National Insurance contribution for Office Holders; it is an Expense account

Cost Analysis

Payroll cost analysis is a powerful tool used to allocate payroll costs to Departments and/or Activities.

Click on the green + symbol to enter a new allocation and select the analysis items from the Funds/Departments/Activities drop-down fields. Amend the % (percentage) field as required. Click the green + symbol again to other lines. Note the percentages must sum to 100%. Click SUBMIT to store.

For more help on this topic Payroll Cost Analysis

Payrolled Benefits

Changes in the Finance Act 2015 allow HMRC to collect income tax on most benefits in kind through the payroll from 6 April 2016. Employers who register with HMRC to use the online payrolling benefits-in-kind (PBIK) service will not have to report them on a P11D form. For the Income Tax year 2017-18 the deadline for registration with HMRC is 5 April 2017. Employers will not be able to register after this date for 2017/18, because HMRC is unable to process changes during the tax year.

Use this screen to select those benefits for payrolling that have been registered with HMRC.

Select the payrolled benefits and SUBMIT to confirm.

Note each benefit being payrolled will need to be set up as a Pay Element. Global Pay Elements are set up and maintained from the menu item under Configure Payroll. A pay element is simply an item of remuneration or deduction which is to be included in the calculation of net pay, in this case each benefit. Pay elements will appear as line items on an individual payslip.