Employee Payroll Detail
This screen is used to add and maintain details of Pay, Tax and National Insurance, relating to the set employee.
The payroll status is selected from the dropdown list:
- Active - will be processed in payroll runs
- Inactive - is not processed in payroll runs, but details remain and are reported in year end filing. For those months a payroll member is inactive there is no charge.
- Hold - employee still usually active, but temporarily no payroll calculations will be done, usually set when holiday pay has been paid, and reversed when the employee returns to work
- Not on Payroll - No payroll impact including year end filing. For those months a payroll member is Not on Payroll there is no charge.
Changes to payroll status for any payroll member will need to made before running a payroll where the change is relevant.
Process as a leaver during the next pay run
If the next payroll run for this employee is the last before they leave tick this box. A Leave Date box appears. If the date of leaving is the same as the payroll run date then leave the date field blank. If the leave date is different enter that date.
For example the actual leaving date is the 25/02/2018 but the payroll will be run and paid as at the month end (28/02/2018). Note the payroll status will be updated automatically after the payroll run.
More information on leavers and reinstatment is available from Payroll - Payroll Leavers and Reinstatement
Unpaid absence at employee request
Tick this box to notify HMRC on the next FPS.
Pay reduced due to strike action
Tick this box to notify HMRC on the next FPS.
Holiday Advance Periods
Select the number of future pay periods (Weeks in a Weekly Payroll, Months in a monthly payroll) over which pay will be spread to calculate National Insurance Charges, and the PAYE pay period for free pay purposes.
For example: If in pay week 9, on top of the normal weeks pay, two weeks holiday pay is paid. Set the holiday advance period to 2, PAYE will be calculated as if the pay week is 11, and National Insurance Charge is calculated for each of the three pay weeks on the basis of 1/3 of the gross pay. If week1/month1 basis is set then PAYE is calculated for each week on the basis of 1/3 of the gross pay.
When the payroll is finalised, the holiday advance period is reset to zero, but the employee's payroll status is set to hold, so that the employee is not processed again in the next payroll run whilst on holiday. The payroll status must be manually set back to active when appropriate.
An internal employee reference for payroll purposes. Usually an unique identifier for the particular employee allocated by the organisation.
The system will automatically generate a Payroll Reference record id for the employee. This record id is guaranteed to be unique in the system - but may not be a consecutive sequence. The user usually overwrites with an unique reference of their own. A reference is mandatory for RTI purposes.
This is not to be confused with the Employers PAYE reference (supplied by HMRC), which set in the Organisation profile.
Payroll Admin Group
Select the payroll admin group from the dropdown box. This is the payroll run group the employee belongs to for payroll processing. Most commonly Weekly or Monthly Pay Run will be used.
- Regular Monthly - For regular monthly paid employees
- Regular weekly - For regular weekly paid employees
- Regular two weekly - For regular two weekly paid employees
- Regular four weekly - For regular four weekly paid employees
HMRC Pay Frequency
Confirm the HMRC Pay Frequency for reporting on FPS. This should be the pay frequency stated on the contract of employment. Note HMRC check if an employee has not been paid for a certain period of time and will treat them as having left that employment, select Irregular to prevent this from happening.
- 4 Weekly
National Insurance Expense Account
In the first instance when the employee is added the Use Organisation Default is selected; the User may however select an alternative expense account if preferred.
The payment method is chosen from the dropdown. This is a mandatory field.
If the selected method is Cheque or BACS/Electronic Transfer, then when finalising a payroll run the optional auto-posting of payments to the accounts can be used.
Bank Account details
The employee bank account details are entered for use in BACS transfer files.
Enter the PAYE tax code for the employee as notified by the Inland Revenue or from a new employee's P45 form. See "E13 - Day to Day Payroll guide" from the Inland Revenue for more information on tax codes. This is a mandatory field.
Tick this box if HMRC have given notice that the employee is to be taxed on a week 1 or month 1 basis. Normally PAYE Tax is calculated on a cumulative basis, however Week 1 or Month1 Basis is a Non cumulative basis.
Week1 or Month1 basis is usually set when HMRC tell you to use a D code or add a week1/month1 marking to any other code they tell you to use. You may also need to use a week1/month1 basis for a new starter if they do not have a P45 form. You may also need to use a week1/month1 basis where you pay an employee in week 53.
Note a function is available to update tax codes and week1 month1 indicators on multiple employee records. It is most useful at PAYE year-end for changing codes based on general instructions provided by HMRC. Note that updates are only applied to employees with payroll status of Active or Hold. The function is available via the Payroll menu. See Payroll - Bulk Tax Code Update Screen
Payroll - Manage Payroll - Bulk Tax Code Update
National Insurance Number
Enter the employee's National Insurance Number if it is known. The number comes from the Department of Social Security. It normally consists of two letters, followed by 6 numbers and a final letter i.e. YP225577D.
If no number is available then at least two lines of address details are required on the employee record to ensure validation of any FPS related to the employee.
To include the employee in an National Insurance Number Verification Request (NVR submission) tick the box. Use this where no number is known or a number needs validation.
National Insurance Contribution Category
Select the National Insurance Rate table appropriate to the employee.
The correct table is dependant on a number of factors. A married woman may opt for a reduced rate and individuals over retirement age pay a lower employee's contribution.
Details of National Insurance Rates and earnings limits are published by the Inland Revenue. It is important to ensure the correct table is used, if you are unsure you please take appropriate professional advice.
From 6th April 2015 employees aged under 21 will not be subject to class 2 (Employers national insurance). There are additional NI tables to allow for this.
Date of Birth Verified
For payroll purposes a date of birth is required and will be reported on RTI filings. The correct age appropriate NI category will be will be applied when the Date of Birth has been verified. Note a warning will be displayed before a payroll is run if a Date of Birth has not been verified when an age related adjustment may be necessary.
PAYE Late Reporting Reason
If there is a late filing of an FPS for this employee, the reason must be reported to HMRC. Select the relevant reason from the drop-down.
Note for a multiple employee payroll FPS there is provision on the FPS header to provide a late filing reason code for the complete FPS late filing.
Normal Weekly Hours
Select the normal weekly hours for the employee.This is a mandatory field for RTI purposes.
- A - Less than 16 hours
- B - 16 hours or more but less than 24
- C - 24 hours or more but less than 30
- D - 30 hours or more
- E - Other
Student Loan Case
Tick this box if you have been notified that the employee is a borrower from the student loan company and is subject to a student loan deduction. Each student loan may be either a plan type 1 (older loan) or plan type 2, it is important to select one as the deduction rates for each differ.
Details of employers responsibilities with respect to student loans are set out in the HMRC publication - "IR59 Collection of Students Loans, A guide for employers"
Student Loan Start Date
Enter the start date notified on form SL1 from the Inland Revenue, or the date of the next relevant pay day if you have received a P45 from a new employee and there is a "Y" in the "Continue Student Loans Deduction?" box.
Student Loan End Date
Enter the stop date notified on form SL2 from the Inland Revenue, or exceptionally a date from the Inland Revenue as an emergency request either by writing or by phone, then confirmed in writing.
More information on dealing with student loans is available from Payroll - Student Loans guide.
ASPP/ShPP (Additional and Shared Statutory Paternity Pay) - Partner Details
Where ASPP is being paid then details of the partner are required to be filed in an FPS. Enter the details in these fields.
Directors Supplemental Info
Select the Director's NIC method. Directors pay NIC on an annual basis however an option exists (Special Administrative Arrangements) that allows a more even application of NIC through the tax year. If uncertain please consult with your advisor.
- Annual Earning Period
- Special Administrative Arrangements