IRIS GP Payroll Release Notes.

Transcription

1 IRIS GP Payroll Release Notes

2 Dear Customer Welcome to your software update for April You must install this update prior to completing any year end procedures for 2011/12, and before commencing any payrolls for the year 2012/13. As well as the required legislative updates, this version of IRIS GP Payroll also includes some new features and enhancements. These notes provide information on all the changes, including: DEO Calculation Changes KIT Day Payments If you have any comments to help us to improve our software, services or documentation, please contact us using the Product wish list on IRIS Online for GP Practice Managers at 2

3 Contents Deduction of Earnings Order (DEO) CSA New Schedule... 4 DEO Calculation Changes... 4 P60 Layout... 6 KIT Day Payments... 6 Removal of COMP Pension Schemes

4 Deduction of Earnings Order (DEO) CSA New Schedule A new method of reporting deductions made for child support, the Employer DEO Schedule, was introduced in April This method allows a company to send a report to the Child Support Agency or upload a CSV file containing the DEO details. This schedule contains all information about Child Support Agency DEO deductions made for a pay period. An employee would normally have the standard amount deducted from his/her pay each pay period. However, in some circumstances the amount deducted may be less than the standard amount; for example if the individual has only been paid SSP for a pay period. Any reduction in the amount deducted for a DEO is reported with a reason code to the Child Support Agency, informing them of the reason why the employee is not paying the full deduction. Prior to April 2012, if the deduction amount was less than the standard amount as defined on the Attachment and Edit an Attachment Entry screens, and there were multiple reasons, for instance the employee received both SSP and SMP in the same period, the Employer DEO Schedule required you to select two reason codes. From April 2012 there have been several changes to the format of the output file created for the Employer DEO Schedule. An additional reason code 12 Multiple Reasons, has been added meaning you will only ever be required to enter one reason code. DEO Calculation Changes The Child Support Agency (CSA) is introducing a new Deduction from Earnings Order (DEO). The new DEO will require IRIS GP Payroll to calculate the employee s Protected Earnings Proportion (PEP) at 60% of the employee s deductible earnings each pay period. The CSA requires the new DEO to be included in IRIS GP Payroll from April 2012 ready for when they start issuing any DEOs based on the new rules. CSA estimate that new orders will not be issued until at least October Therefore for a period of time, you may still continue to receive DEOs based on the old rules. The new scheme will be known as the 2012 scheme. Currently, CSA issue DEOs to employers with the Protected Earnings Proportion (PEP) already calculated and set for each pay period. If an employee s deductible earnings fall below the PEP, for example they receive SSP in the pay period, no deduction will be made. Under the new DEO rules, unless an employee has negative or zero net pay, his/her deductible earnings will always be greater than the PEP. The new DEO will be in addition to the existing DEOs in IRIS GP Payroll. This means the following DEO deductions will be available from the Type of Order drop down menu: Child Support Agency (DEO) this is an existing DEO Second order for Child Support Agency (DEO) this is an existing DEO Child Support Agency (DEO) New PEP DEO Second order for Child Support Agency (DEO) New PEP DEO 4

5 Calculation Examples Salary Tax NIC NHS Pension Contribution Net Earnings for DEO = DEO Deduction Due DEO Protected Earnings is 60% of Available Earnings = DEO Deduction Taken Net Pay = DEO Deduction Due Carried Forward 0.00 Salary Tax 0.00 NIC 0.00 NHS Pension Contribution Net Earnings for DEO = DEO Deduction Due DEO Protected Earnings is 60% of Available Earnings = DEO Deduction Taken Net Pay = DEO Deduction Due Carried Forward =

6 P60 Layout Following the introduction of ASPP in the tax year 2011/12 the P60 and P35 reports have been amended to include ASPP payments. We recommend that you use the P60 Datamailer forms which can be ordered from IRIS. KIT Day Payments While on maternity / adoption or additional paternity leave an employee can return to work for up to 10 days without losing entitlement to their statutory payment and / or leave. These 10 days are referred to as Keep In Touch (KIT) days. Prior to the April 2012 update, IRIS GP Payroll worked on the principle that SMP / SAP / ASPP were included in the KIT day payment amount. Therefore, IRIS GP Payroll deducted any SMP / SAP / ASPP from the KIT day when calculating the additional amount to pay for the KIT day. Once you have installed the April 2012 update IRIS GP Payroll will give you the option to deduct SMP / SAP / ASPP from KIT payments or not. The option will apply to the whole Statutory Leave Period. When you set up a new Statutory Leave Period, the option to deduct SMP / SAP / ASPP from KIT day payments will be set to Yes by default. Also, if an employee is in the middle of a Statutory Leave Period when you install the April 2012 update, the new option to deduct SMP / SAP / ASPP from KIT day payments will automatically be set to Yes. If you change the option part of the way through an employee s Statutory Leave Period and KIT day payments have already been made the following message will be displayed: Removal of COMP Pension Schemes With effect from the 6 th April 2012, Contracted-Out Money Purchase (COMP) occupational pension schemes will be abolished. This affects employees on NI Letters F, G or S. NI Letters F, G and S will not be available once you have moved into the 2012/13 tax year. It is very unlikely in IRIS GP Payroll that you will have any employees on NI Letter F, G or S as most employees have an NHS Pension meaning they have an NI Letter D. However, if you do have any employees that are on F, G or S you will need to amend their NI Letter before you can Transfer employee details into the next tax year. Again this is very unlikely but, should you have any employees on a Contracted-Out Money Purchase occupational pension scheme, you will need to amend the employee s pension deduction after you have performed Transfer employee details into the next tax year. 6

7 Software available from IRIS IRIS GP Payroll Simple, accurate and reliable payroll software which handles all requirements of the NHS Pension Scheme IRIS GP Accounts Easy to use, flexible accounts software written by GPs and tailored for NHS general practice IRIS HR Manager The easy way to keep employee data up to date IRIS Backup The easiest, most secure way to back up and restore your business files HMRC online service helpdesk HMRC employer helpline HMRC new employer helpline (for new business) Support IRIS Healthcare Solutions PO Box 33, Wigan, WN5 0FS IRIS, IRIS Healthcare Solutions and IRIS GP Payroll are trade marks. IRIS Healthcare Solutions is a trading name of IRIS Payroll Software Ltd which is part of the IRIS Group. IRIS Payroll Software Ltd All rights reserved. Microsoft, Windows Vista and Windows logo are registered trade marks of Microsoft Corporation in the United States and/or other countries. All other trade marks are the property of their respective owners.