Payroll - Common Issues and Problems

• Correct a payroll error- prior to rti filing
• Correct a payroll error- after rti filing
• FPS Failure
• Deleting and re-running a payroll
• Rolling back an employee
• Amending employee details
• Employment Allowance not being claimed
• Employee leaving date not set
• Leaving date set in error
• Pension deductions not being made
• Correcting prior tax year data at HMRC

Correct a payroll error- prior to rti filing

Until a payroll run is closed or queued for RTI filing simply make the necessary corrections and then from the Payrun Processing screen, (RE)CALCULATE and complete in the usual way.

Payroll - Manage Employees - Action Box - Make the changes necessary

Payroll - Payrun Processing - (RE)CALCULATE

If the payroll has been closed or queued for FPS filing but not yet submitted to HMRC the payroll run can be reversed, the data corrected and the run completed again.

Where the payroll run is queued for FPS submission , go to the Payroll(RTI) screen

HMRC - Payroll(RTI) - FPS Submission - RECALL the relevant submission

Navigate to the Payroll Batch History Screen.

Payroll - Payroll Batch History - DELETE the relevant closed payroll run

The Payroll is then re-opened and can then be deleted if necessary otherwise make the necessary corrections and then from the Payrun Processing screen, (RE)CALCULATE and complete in the usual way.

Payroll - Payrun Processing - (RE)CALCULATE

Correct a payroll error- after rti filing

Once an FPS for a payroll run has been filed HMRC clearly have that information and it cannot be reversed. However the information is on a cumulative basis in the PAYE year, So the user has a choice:-

1. Correct any payroll errors in the next payroll run and file an FPS with the now correct cumulative figures, or more likely
2. So as to have the correct figures for payslips, accounting etc; Re-Open the payroll, make the corrections, and close the payroll run without filing an FPS. The next FPS will reflect the correct cumulative figures.

In the first case run the next payroll at the appropriate time with any necessary corrections.

Payroll - Payrun Processing

For the second case navigate to the the Payroll Batch History Screen and re-open the payroll run.

Payroll - Manage Payroll - Payroll Batch History - DELETE the relevant closed payroll run

Make the corrections necessary and return to the Payrun Processing screen, ensure the Suppress box is ticked, (RE)CALCULATE and complete in the usual way. The changes will be reflected in the FPS filed from the next payroll run.

Payroll - Payrun Processing - (RE)CALCULATE

FPS Failure

If an FPS feedback message confirms a local validation failure, then the payroll run can be deleted by clicking the DELETE button. The user may make any adjustments and re-run the payroll and FPS filing.

Note if it possible to correct the errors without re-running the payroll (things like missing Employee Working hours selection) simply correct those errors that the message identifies and click SEND again.

If the submission feedback is a remote (HMRC) validation failure then to delete or amend a payroll run requires that the Submission be re-called from the FPS submission management screen.

HMRC - Payroll(RTI) - FPS Submission - RECALL the relevant submission

Payroll - Payroll Batch History

The Feedback tab highlights the reason for a failure and the user will need to correct the issue.

If it is as simple as the HMRC Gateway credential are incorrect navigate to the credential screen and re-input.

HMRC - Credentials

If the problem is elsewhere re-open the payroll, make the necessary corrections and then from the Payrun Processing screen, (RE)CALCULATE and complete in the usual way.

Payroll - Payroll Batch History - DELETE the relevant closed payroll run

Payroll - Manage Employees - Action Box - Make the changes necessary

Payroll - Payrun Processing - (RE)CALCULATE

Deleting and re-running a payroll

Navigate to the the Payroll Batch History Screen and re-open the payroll run.

Payroll - Manage Payroll - Payroll Batch History - DELETE the relevant closed payroll run

Clicking the now visible DELETE button will now delete the payroll entirely.

To rerun the payroll, make the necessary corrections and then from the Payrun Processing screen, (RE)CALCULATE and complete in the usual way.

Payroll - Payrun Processing - (RE)CALCULATE

Note that if an FPS has already been filed it will likely require that the Suppress box is ticked, (RE)CALCULATE and complete in the usual way. The changes will be reflected in the FPS filed from the next payroll run.

Payroll - Payrun Processing

Rolling back an employee

From time to time it may be necessary to rollback to a particular date the payroll calculations and records for an employee. For example where the employee?s appropriate national insurance table should have been changed in a prior pay period but was not notified in time or a pay element had inadvertently been not included.

A rollback needs to be undertaken with care, the Payroll - Employee Rollback guide provides more information.

Amending employee details

Employee details are amended via the Manage Employee Screens.

Payroll - Manage Employees

Click Action Menu adjacent to a particular employee to update information as needed.

• The EMPLOYEE DEATIL button accesses screens for basic employee data including Name, Contact Details and date of Birth
• Use the PAYROLL/TAX button to amend payroll status, payment method, PAYE Code, NI Table and supplement information required by HMRC for RTI purposes
• Add or Amend pay and deduction information via the PAY and DEDUCTIONS button
• Connecting an employee to a pension scheme or amending any pension information is done from the PENSION button

Employment Allowance not being claimed

The process for claiming Employment Allowance is discussed in Payroll - Employment Allowance, the user is advised to review the process.

Employee leaving date not set

Use the following process, where after a payroll run is closed and filed to HMRC, it is discovered that an employee should have been flagged as a leaver.

1. From the Manage Payroll menu select employee rollback

   Payroll - Manage Payroll - Employee Rollback

2. Select the employee and rollback to one day before the last payroll run date on which they should have been tagged as a leaver
3. Now set a leave date for the employee and their record.

   Payroll - Manage Employees - Action Box - Payroll/Tax - tick Process as a leaver during the next pay run and set the leave date - SUBMIT

4. Now re-run the payroll but on the Payrun Process screen select the employee.

   Payroll - Payrun Processing - Select the employee and other relevant settings - SUBMIT

5. File the FPS in the usual way to update the employee status at HMRC.

   HMRC - Payroll(RTI) - FPS - SEND

6. Review and check the status for the employee on the system is as expected.

   Payroll - Manage Employees - Action Box - Employee Details

For more information on using employee rollback see Payroll - Employee Rollback

Leaving date set in error

There may be occasions where an employee who has been processed as a leaver needs to be reinstated. Note reinstatement is not the same as re-employment.

Reinstatement will only be in the following circumstances: -

• The employee was processed as a leaver by mistake. or
• The employee is returning in the same PAYE year that they left and have received no other earnings since leaving. or
• The employee is returning in a PAYE year after the year they left and this is their first employment in the new tax year.

In all other circumstances they are being re-employed and need to be set up as such with prior pay and a new payroll reference number.

1. Reinstatement is launched from the employee details screen.

   Payroll - Manage Employees - Action Box - Employee Details - Employee Details Tab

2. Click the REINSTATE EMPLOYEE button adjacent to the Employment Ended date field.
3. When ready dismiss the dialogue by clicking the REINSTATE button
4. Confirm the revised status on the employee details screen.

   Payroll - Manage Employees - Action Box - Employee Details - Employee Details Tab

If the employee was also a director when the leaving date was set, they are also reinstated as a director.

Where an FPS has been filed that indicated an employee had a leaving date set this will remain filed at HMRC however the next filed FPS will show new cumulative figures and that no leaving date is set for the employee. This is accepted by HMRC.

Pension deductions not being made

There are a number of items to check if pension deductions are not being made as expected.

1. Ensure that the pension scheme itself has been set up correctly with appropriate contribution rates and deductions regime.

   Payroll - Configure Payroll - Pension schemes

2. Ensure that any payroll elements making up the gross pay subject to pension deductions are so indicated.

   Payroll - Configure Payroll - Payroll Elements - on each appropriate element make sure that Impacts Pensionable Gross? is ticked - SUBMIT to store

3. Check that all relevant employees are associated with a pension scheme.

   Payroll - Manage Employees - Action Box - Pension - for each employee - select the pension scheme - SUBMIT

Correcting prior tax year data at HMRC

The processes for correcting prior tax details are discussed in Payroll - EYU (Earlier Year Update), correction of errors, the user is advised to review these processes and select the process applicable to the tax year for which a correction must be made.

If the user is uncertain they are advised to consult their advisor.

Related Topics

• Payroll - Overview
• Payroll - Running a Payroll
• Manage Employees