Installation via the Internet... 4 Earnie Enhancements Version 1.26 Spring PAYE Legislation Changes... 5

Transcription

1 18/02/2014

2 Contents Installation via the Internet... 4 Earnie Enhancements Version 1.26 Spring PAYE Legislation Changes... 5 National Insurance Number KC prefix... 5 RTI Changes... 5 Full Payment Submission (FPS)... 5 Car and Fuel Benefit... 5 Employer Payment Summary (EPS)... 6 Earlier Year Update (EYU)... 6 Reports P Payments & Deductions... 7 Percentage deductions and job cards... 7 Outstanding Balance on Priority Orders... 8 Payroll Calendar... 9 Apprenticeship Levy Year-end Restart Company Options Company Details Quick Calculator Employers Payment Summary - EPS Reports Automatic Enrolment Declaration of Compliance Pension Output Files NOW Pension file to optionally include ER Code in Payroll No Pensions Transitional Period ends on 30 September Teachers Pensions

3 Monthly CIS return Archive Company Batch Processing Holiday Pay Module Gender Pay Gap Reporting Appendix 1 Legislative Rates and Bands for 2017/ Appendix 2 Car and Fuel Benefit Car and Fuel Benefit in Payroll How to add a Company Car to the software How to Edit an existing Car How to Delete a Car How to allocate a car to an employee How to withdraw a car/fuel from an employee How to view Car History How to view Employee History Processing Car and Fuel Benefit through Payroll Reports to print Appendix 3 - Apprenticeship Levy What is the apprenticeship levy and who pays it? How? What value of apprenticeship levy allowance should I set?

4 Installation via the Internet Before you start, ensure that you have up-to-date backups of your EARNIE data. Make sure that the EARNIE program is closed. It is important that you do not have any other applications open while installing the update (other than any anti-virus software that is normally running in the background). Click on the link supplied to Install EARNIE. Follow the on-screen instructions. The exact installation procedure will depend on the configuration of your computer but you will be extracting EARNIE files supplied by the Iris Group Ltd to a temporary destination folder, which will then be automatically installed. Just click on the Install button and follow the options on the screen. If Windows SmartScreen (a warning message) appears to block the installation, click on More Information and then Run Anyway. When the installation is complete go into the program your data will be automatically updated to run with the new version (1.26) of the program. Remember to update every machine that uses EARNIE. NETWORKS - In addition you must perform an installation for each extra workstation on which you intend to use the program. Having installed the program to the main server as above, repeat the procedure on each workstation choosing the location of the server where the main program was installed. Choose the option to do a Typical installation. 4

5 Earnie Enhancements Version 1.26 Spring 2017 This update of the software includes several new features and enhancements. We recommend that you install this updated version of the EARNIE Payroll program immediately. There is no need to wait until the year-end. If you would like help or more information about any of the changes in the program, please contact Software Support on or refer to the Help within the program. PAYE Legislation Changes The rates for tax, NI, Statutory Payments, Student Loans etc., have been updated for 2017/2018. For full details See Appendix 1. Any changes in tax bands from Scottish Parliament have also been included The National Living Wage for those 25 and over has increased to 7.50 per hour from April 1 st For more information, go to Tax codes have been uplifted as follows: Code Suffix L: increased by 50 Code Suffix M: increased by 55 Code Suffix N: increased by 45 National Insurance Number KC prefix HMRC have advised KC prefix National Insurance numbers are now valid. You are now able to enter an NI Number in Employee Details - Tax/NI - NI Number with a KC prefix, e.g. KC694558C. RTI Changes Full Payment Submission (FPS) The FPS has been updated according to the 2017/2018 schema. Car and Fuel Benefit Your payroll software has been fully updated to allow you to allocate cars and fuel to employees, calculate the cash equivalent, deduct the tax due on the amounts through payroll, and report those amounts to HMRC via FPS. To cater for this new function, a new Configure Company Car Details item has been added to the Company menu. 5

6 To use the new car benefit fields, the company must be registered with HMRC to payroll benefits. You can do this using your HMRC on line account. A detailed Guide covering how to add, allocate and calculate the cash equivalent of cars and fuel in the payroll software can be found in Appendix 2. Employer Payment Summary (EPS) Changes have been made to the Employer Payment Summary to cater for the 2017/2018 schema update. Apprenticeship Levy Month-end processing will calculate any Apprenticeship Levy due in each month, if applicable, as described here. Monthly values will then be populated to the EPS screens at each pay period. Earlier Year Update (EYU) Various changes have been made to the Earlier Year Update to cater for the 2016/2017 schema update. All references to NI Earnings 1d have been removed All instances of NI Earnings 1a have been renamed Earnings to LEL All instances of NI Earnings 1b have been renamed LEL to PT All instances of NI Earnings 1c have been renamed PT to UEL Sundry screen and Confirmation screen New fields have been added: Flexibly Accessing Pension Rights Pension Death Benefit Reports Flexible Drawdown Taxable Payment Flexible Drawdown Non-Taxable Payment The following reports have also been updated with these changes: Submitted Values report Employee YTDs Report Amended YTD Values report 6

7 Reports P60 The P60 reports have been updated in line with legislative changes. These changes include: One of the NI columns has been removed and the remaining one has been renamed, due to the removal of Upper Accrual Point at the start of 2016/2017 tax year The text referring to Additional Statutory Paternity has been removed as this could not be paid after the end of 2015/2016 tax year NOTE: The P60 report must be reselected from the library, after installing the update, to make sure you have the correct version. After doing Year-end Restart for your payroll companies, you need to reselect all the reports you use regularly from the Library, to ensure they are up to date. Payments & Deductions Percentage deductions and job cards - Costings Module only The way percentage deductions are handled to enable them to be costed to job cards has changed. (Job cards are only available using the Costing module. If you are interested in this module please contact our sales team.) A percentage deduction is any deduction with Type set as Percentage, Percentage Hierarchical, Percentage Auto Enrolment or Pensionable Earnings Pension. During payroll run, any percentage deduction on the Input/Edit Payroll Details screen will be able to be costed to a job card. It must, however, be at the same rate as the amount on the Input/Edit Payroll Details screen or zero. You will not be able to select a different rate or apply a percentage deduction to a job card without first applying it in the main payroll run screen. 7

8 Outstanding Balance on Priority Orders In the September 2016 update a new field named Outstanding Balance was added and enabled for Council Tax, Earnings Arrestments, Community Charge, Fines and DEAs to allow payments to be deducted from the employee until the outstanding balance had reduced to zero. This change has now been introduced for Priority Court Orders (PCOs) and Protected Earnings Orders (PEOs). When the April update is installed, the Outstanding Balance field will be enabled for any Priority Court Orders and Protected Earnings Orders with Clear to-date totals currently set to When Total is Zero. Any To-Date values for these orders will be automatically transferred to the Outstanding Balance field and the To-Date value set to When setting up new PCOs and PEOs you need to enter an Outstanding Balance when required, in the same way you would enter a value in To-Date for PCOs and PEOs with a reducing balance: Once the order is added to an employee, click on the AEO Settings button at the bottom of the screen and the following screen will open: Enter the Issue Date of the order by typing directly into the field. You can complete the other fields if necessary here as well, as any changes you make will be reflected on the Pay/Deds tab. You need to enter the amount owed, if there is one, in the Outstanding Balance field. Once the payroll has been run for a period, any values deducted for the attachment will be stored in the To-Date field on the Pay/Deds tab, which will in turn populate the To-Date field in AEO Settings. 8

9 Payroll Calendar New functionality has been added to the Payroll Calendar, to include the dates for the actual payroll run and period worked. After installing the update, when accessing the Payroll Calendar from Company - Payroll Calendar the following screen will appear: 1. Select a Pay Frequency to continue 2. Click Next 3. If you have previously had a Payroll Calendar configured for that Pay Frequency, the next screen you see will contain that calendar. If not, you will be taken to the Configuration screen first 4. The system will create a calendar for you based on the information you select on this screen. When you have finished, click Next to view the calendar 5. You are able to click directly into the grid to make changes to individual dates if you need to, for example if you pay slightly early in December to allow for Christmas 6. To return to the Configuration screen to make changes, click Configuration 7. Click Reset/Remove if you want to completely start again 8. If you want to generate the calendar for the next tax year, you can do so by clicking the Generate <Tax Year> button. You will then be able to move between tax years by clicking on the drop down arrow in the top left corner of the Payroll Calendar 9. Click Finish to save and close 10. To set up the Payroll Calendar for a different pay frequency, go to Company - Payroll Calendar again NOTE: When you set the Payroll Date for a company, after configuring the Payroll Calendar, you will only be able to select from the dates configured there NOTE: There are references to Remote Data Entry in the newly enhanced Payroll Calendar. These are for a future development and not currently available. Additional functionality will also be added regarding BACS payments in future developments. 9

10 Apprenticeship Levy Funding for apprenticeships is changing and employers will be required to contribute to a new Apprenticeship Levy if your total pay bill > 3 million a year. The Apprenticeship Levy and Apprenticeship Allowance have been introduced from the 2017/2018 tax year. Details on the legislation can be found in Appendix 3. Changes to the software to incorporate Apprenticeship Levy are detailed here. Important Notes: You will only pay the levy if your pay bill exceeds 3million per tax year, pro-rata ed on a monthly basis When creating a new company part way through the tax year that has been paid on another system, Pay Bill YTD and Levy Paid YTD must be manually entered into Company - Alter Company Details - HMRC Details Month-end Processing must be performed in order for Apprenticeship Levy and Allowance to be calculated correctly The Allowance can be split across multiple companies within the same PAYE scheme or group but the maximum allowance cannot exceed 15,000 Calculations need to be performed using the Total Pay Bill for the whole PAYE scheme Company Cost Summary, P30 Summary and Employer s Annual Return will need to be reselected from the library Year-end Restart A screen has been added to the Year-end Restart process, to enable you to indicate whether a company will be claiming the Apprenticeship Allowance to offset against the Levy. You are able to tick either Select maximum allowance or No Allowance, or to enter just the amount of allowance this particular company will be claiming. NB this is only relevant if your payroll bill will exceed 3 million. If this is not applicable you should normally tick the option to Select maximum allowance. For most payrolls this will never be invoked. 10

11 Company Options A new Apprenticeship Levy tick box and an Apprenticeship Levy Allowance numeric field have been added to Company - Alter Company Options. This will be set during the Year-end Restart. When creating a new company, Apprenticeship Levy will be ticked by default, and Apprenticeship Levy Allowance will be populated with the relevant amount for the tax year. Company Details A new Apprenticeship Levy tab has been added to Company - Alter Company Details - HMRC Details. Month-end processing will populate the table values for Pay Bill, Allowance and Levy Paid. If you start using the payroll mid-year, it is possible to enter the values to date directly into the table. Quick Calculator A new App Levy tab has been added to the Quick Calculator. This is to provide help where the levy needs to be calculated across a group of companies. Employers Payment Summary - EPS A new App. Levy column has been added to the Employer Payment Summary screen, to the right of CIS Suf. You are able to enter/amend the value for Apprenticeship Levy in the Current Month row or the total row against the month itself, as with any other EPS values. Reports Apprenticeship Levy has been added to the EPS Summary Report and the EPS Confirmation Report. 11

12 Automatic Enrolment Pension Parameters for automatic enrolment have been updated for 2017/2018. Declaration of Compliance The following changes have been made to the Declaration of Compliance report when it is being used for Re-enrolment: Number of Eligible Jobholders re-enrolled into a pension scheme This is the total number of employees with: A Started Date on or before the Re-enrolment Date AND A Left Date either blank or after the Re-enrolment Date AND Their Worker Status in the Pay Reference Period that the Re-enrolment Date is in was Eligible Jobholder AND An AE Date in the PRP the Re-enrolment Date is in AND An Opt-out Date or Ceased Contributions Date more than 1 year before the Reenrolment Date Number of workers in a qualifying scheme at re-enrolment This will be the total number of employees with: A Started Date on or before the Re-enrolment Date AND A Left Date either blank or after the Re-enrolment Date AND In the Pay Reference Period (PRP) the Re-enrolment Date is in have Member of a Qualifying Scheme ticked AND Opt-out Date and Ceased Contributions Date are blank This will not include employees who have been re-enrolled in the re-enrolment PRP Pension Output Files NOW Pension file to optionally include ER Code in Payroll No An option has been added to allow you to add ER Code to Employee Code in the PAYROLLNO field of the NOW pension file. Configure Pension Fund A new Add ER Code to Payroll No field has been added to the Create/Edit Pension Fund screen. The field will only be available when the File Output is set to NOW. 12

13 AE Configuration Tool A new Add ER Code to Payroll No field has been added to Step 8 of the AE Configuration Tool The field will only be available when the File Output is set to NOW. Pensions Transitional Period ends on 30 September 2017 The Transitional Period flag will be removed from your payroll software in either the April 2017 or Summer 2017 update. The transitional period ends on 30 th September All employees with Transitional Period ticked will be assessed for auto enrolment on 01/10/2017 and postponement may then be applied to Eligible Jobholders, Non-eligible Jobholders and Entitled Workers. Once the transitional period has ended, the Transitional Period indicator will be ignored and the employee will be included in the normal AE assessment. Teachers Pensions Teachers Pension Rates have been updated for 2017/2018. Teachers Pension Monthly Data Collection In future, Teachers Pension require data regarding pension, service and salary from employers to be sent via Monthly Data Collection (MDC). There are already a number of employers submitting data using MDC and every employer needs to have started the onboarding process by December From April 2018 MDC will be the only accepted method of providing Teachers Pension data. MDC will replace TR6 and TR8 forms to indicate starters and leavers, Certificates of Reemployment and the Annual Service Return (ASR). The on-boarding process will be controlled and managed by Teachers Pension. The payroll software will create the file for you to send. To cater for this, the following changes have been made in the payroll software: NOTE: The new MDC function will only work if the Autoenrolment Suite is installed. It also requires MS Excel. Please be aware the Teachers Pension template does not work with MS Office 97 or 2010 Pension Fund Details Teachers Pension options have been added to the Pension - Configure Pension Fund - Create/Edit Pension Fund Details screen: 13

14 On the General tab, Teachers Pension has been added to Scheme Type box On the Output Files tab, Teachers Pension has been added to the File Output box. If you select Teachers Pension here, the screen will change as follows: Payments/Deductions o Include field will be set to This fund only and disabled o Unique ID/ER CODE will be disabled o NEST Employer Ref Number will be disabled o First, second and third Not in use for this fund fields will be set to Not in use for this fund and disabled o NEST Username set to Not in use for this fund o NEST Password set to Not in use for this fund o Add Employee contributions to Employer s will be disabled o Group and Payment Source will be disabled o Local Authority Number will be added below Add Employee contributions to Employer s o Establishment Number will be added below Local Authority Number A Teachers Pension label and tick box has been added to Company - Alter Payments/Deductions - Formulas - Add/Edit - Formula Definition screen in order to identify Teachers Pension formula deductions. Tick this to identify this particular formula as a Teachers Pension. Employee Details Pay/Deds A new Full or Part time box has been added to Employee -Select Employee -Employee details - Pay/Deds tab, to the right of the Teachers Pension Career Average field. The box contains the following options: Full time employment Part time regular Part time irregular The default setting will be Full time employment. If a Teachers Pension pay/ded is selected (this could be a pay/ded configured using the Teachers Pension category, or a formula deduction with Teachers Pension ticked), the Teachers Pension Career Average and Full or Part time fields will be displayed. If the employee has a pay/ded set to Teachers Pension pay/ded Category and the Standard value is set to 1 at the time of installing this update, the Full or Part time field will 14

15 automatically be set to Full time employment. If it is less than or greater than 1, it will be set to Part time regular. You can change it manually if you need to. Pension Fund If the Pension Fund selected on Employee -Select Employee -Employee details - Auto Enrol is a Teachers Pension fund, the Output File Fields on the Pensions tab will be renamed to Teachers Pension Output File Fields, and will consist of: Member Reference Number Annual Full Time Salary Rate Part Time Salary Import/Export The Import/Export screens have been updated to include Teachers Pension descriptions. Quick Report Writer The Quick Report Writer has been updated to include Teachers Pension descriptions. Select File to Create A new Teachers Pension option has been added to Pension - Create Pension File - Select File to Create screen. Teachers Pension Monthly Data Collection screen Select Pension - Create Pension File - Select File to Create - Teachers Pension to open the new Teachers Pension - Monthly Data Collection screen. To use this screen: Select the required Month and Year by clicking on the drop down arrows Select the required Teachers Pension fund from the Pension Fund box, if you have more than one Local Authority Number and Establishment Number will be populated for you depending on the Pension Fund you select 15

16 Click Next to start the data collection process and if validation is passed, open the confirmation screen If there are errors, a screen will open detailing each one If you are happy with the values on the confirmation screen, click the Create File button Creating the MDC File When you click on Create File on the Teachers Pension Monthly Data Collection confirmation screen, providing validation is passed, the system will gather the data required to export into the MDC template file. The file will be saved in the MDC -<Company ID> folder within the program folder, and will be in Excel format. E.g. C:\Program Files\Earnie\MDC\0001. The name of the file will be MDC<month><year>.xls. When you open the file (you will need to enable macros if asked) you will see it is already in the correct format for Teachers Pension. You can add/remove/change the data as you need and then upload to Teachers Pension in the way you do now. If you need help at this point, click the View Instructions button at the top of the spreadsheet. 16

17 Monthly CIS return CIS module only CIS monthly returns have changed: HMRC now only accepts electronic submissions Submissions can be resent if amendments need to be made To cater for this, we have updated the way month-end processing is carried out. Currently you must use the Since Last Cleardown option when creating the report; this has now changed to Based On Tax Calendar, to enable you to redo month-end processing if any changes are made in the period. The CIS Month-end Return screen will be populated with the values calculated as part of the month-end processing. Any subcontractors included on the Month End Summary will also be on the CIS Month-end Return screen. The Send tick box will be ticked for all subcontractors listed, even if the submission has previously been sent for the selected period. You can un-tick the box to exclude a subcontractor from the submission, however HMRC have advised that if a re-submission is made this will overwrite the previous submission. Therefore, we must emphasise that if you have made a change to a subcontractor, all subcontractors need to be re-submitted for that tax month. Archive Company The option to archive a Company on the system has been added. Once a Company has been archived you are able to remove it from the visible list of Companies, but not delete it from the system. Useful if you have multiple unused copies of the same Company, for example. To archive a company: Go to Company - Alter Company Options and tick the Archived Company box. To stop archived companies appearing in the company list: Go to Company - Select Different Company In the top right of the screen you will see a new drop down field labelled Show. Click the arrow and the available options are All companies, Current companies only and Archived companies only. NOTE: The option has also been added to the Delete Company and Back-up Company screens 17

18 Batch Processing When Batch Processing is enabled in Operator Preferences, the Select Company screen will only list companies that this specific user has access to when running a payroll. Holiday Pay Module If you edit the values in the Holiday screen and click Recalculate, any resulting changes will now be reflected in the Holiday Pay Calculation screen. For more details about the Holiday Pay Module, please contact Farmplan. Gender Pay Gap Reporting Subject to the approval of Parliament, from April 2017 employers who employ 250 or more employees will be required to publish the average difference between men and women's aggregate hourly pay on the organisation's website, and submit evidence of compliance annually to the Government. Employers will need to publish figures concerning: Average difference between men and women's aggregate hourly pay Gender bonus gap Proportion of men and women receiving a bonus Proportion of men and women working at each quartile of the organisation's pay distribution From April 2017 employers will have up to 12 months to publish this information. As your payroll software does not contain all the required information, we recommend you speak to your HR advisor to prepare for this. Further details can be found on the ACAS website, here. 18

19 Appendix 1 Legislative Rates and Bands for 2017/18 19

20 20

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22 Appendix 2 Car and Fuel Benefit Car and Fuel Benefit in Payroll From the 2016/2017 tax year, employers were able to account for the tax on the benefits in kind (BiKs) they provide to employees via PAYE instead of sending a P11D after the end of the tax year. The value of the benefit is added to the employee s taxable pay for each pay period and reported via FPS. You can payroll all BiKs, apart from: vouchers and credit tokens employer provided living accommodation interest free and low interest (beneficial) loans You must still report these excluded BiKs on a P11D, even if you are payrolling other BiKs for the same employee(s). This means you can also choose to payroll company car BiKs instead of submitting the P46 (Car) form. The benefits are calculated in the same way as previously, but the cash equivalent is divided into an equal amount for each pay period, with any residual amount going through the final pay period for the year. In your payroll software you are able to add cars, allocate them to employees, calculate the cash equivalents of the car and fuel benefit for the year and process a prorated amount through payroll. To use the new car benefit fields, the company must be registered with HMRC to payroll benefits. You can do this using your HMRC on line account. There are three stages to managing company cars in Earnie: 1. Adding the cars 2. Allocating the cars to employees and calculating the cash equivalents 3. Processing the car benefit through payroll and reporting to HMRC via FPS You access all of the car options in the payroll software by selecting Company - Configure Company Car Details. This will open the Company Cars screen. 22

23 How to add a Company Car to the software To add a company car to the software: 1. Go to Company - Configure Company Car Details. This will open the Company Cars screen. 2. Click Add to open the following New Car screen: 3. Enter the Registration No. of the car and then select a Make from the drop down list. The list will be populated by the VCA database 4. The options in the Model field will change according to the Make you select, the Description options will change based on the Model, and the Transmission and Fuel Type options will alter according to the selected Model and Description. The CO2 Emissions and Engine Size will also be populated automatically based on previous selections, but you can amend them manually if needed 5. Complete the First Registered date field. This is essential for the Cash Equivalent to be calculated. It should be today s date or earlier 6. Tick the Not In Use field if the car is not currently going to be allocated to any employee 7. Initially when adding a new car, the Allocation button will be disabled; click Save to be able to Allocate the car to an employee 8. Click OK to close the car details and return to the Company Cars screen, or click Allocate to allocate the newly set up car to an employee straight away 23

24 How to Edit an existing Car If you need to make changes to an existing car: 1. Go to Company - Configure Company Car Details - Company Cars screen 2. Click Edit to open the Car screen 3. Make the required changes 4. Click OK to close the Car screen and return to the Company Cars screen How to Delete a Car If you need to remove a car from the payroll software completely: 1. Go to Company - Configure Company Car Details - Company Cars screen 2. Click on the car that you need to delete 3. Click the Delete button NOTE: Deleting a car will stop any associated benefits being processed through the payroll. If a car is deleted the Car History will be deleted. The actual payment/deduction records/history will not be deleted. This will be deleted in the normal way when history is cleared at year-end. A car can only be deleted if it is not allocated to anyone and it has not been allocated to anyone in the current tax year. How to allocate a car to an employee Once the car has been added to the payroll software, you can allocate it to an employee in order to calculate the cash equivalent. To do this: 1. Go to Company - Configure Company Car Details - Company Cars screen 2. Click onto the car that you want to allocate 3. Click the Allocation button 4. If the highlighted car is already assigned to an employee the Car Allocation screen will be displayed, with the car and employee s name across the top. If the highlighted car is not already assigned to an employee the Employee Selection screen will be displayed 5. If the Employee Selection screen is displayed, select the relevant employee to open the Car Allocation screen. The Car Allocation screen will be displayed, with the car and employee s name across the top 24

25 NOTE: A car can only be assigned to a single employee at a time whereas an employee can be assigned multiple cars A date within the current tax year Optional - used in the cash equivalent calculation The Cash Equivalent of the car benefit Defaults to Date car made available must be in the current tax year A date within the current tax year The Cash Equivalent of the fuel benefit The total Cash Equivalent of the car and fuel benefits Can be edited initially to cater for setting up a car allocation midyear but is then populated automatically and is display only once an amount has been processed through payroll 6. Click into each field to enter the car information. As soon as data is entered into any of the fields, the Cash Equivalent fields will be calculated and updated for you 7. Click OK to save and return to the Company Cars screen 25

26 How to withdraw a car/fuel from an employee When you need to record that an employee no longer has access to a car or fuel, you just need to enter a Date car withdrawn from employee on the Allocation screen. To do this: 1. Go to Company - Configure Company Car Details - Company Cars screen 2. Click onto the car that you need to withdraw 3. Click the Allocation button 4. Enter a Date car withdrawn from employee and/or a Date fuel withdrawn. The dates must be in the current tax year 5. Click OK How to view Car History If you need to view the employees that have been allocated a particular car over time: 1. Go to Company - Configure Company Car Details - Company Cars screen 2. Click on the Car History button 3. The screen will display a list of employees to whom the car has been allocated 4. Click Edit if you need to make changes to records that exist in the current tax year, for example, to change the dates allocated to or withdrawn from an employee 5. Highlight a row and click Payments to display the history screen for payments in the appropriate tax year 26

27 How to view Employee History 1. Go to Company - Configure Company Car Details - Company Cars screen 2. Click on the Emp. History button 3. If the highlighted car is already assigned to an employee the Emp. History screen will be displayed, listing the cars that have been allocated to this employee. If the highlighted car is not already assigned to an employee the Employee Selection screen will be displayed, allowing you to select the employee you require 4. The screen will display a list of cars that have been allocated to that employee 5. Click Edit to make changes to records that exist in the current tax year 6. Highlight a row and click Payments to display the history screen for payments in the appropriate tax year Processing Car and Fuel Benefit through Payroll Once the car and/or fuel benefit is calculated, the payroll software will automatically create a notional payment for you and allocate it to the relevant employee records. NOTE: Multiple car allocations will be merged into a single Car Benefit payment The system will take the calculated benefit for an employee and split it into a periodic payment, depending on the number of pay periods left in the tax year, which will be set up automatically as the standard value in Employee details. When payroll is processed, that amount will be added to the employee s taxable pay, without actually paying them the amount, so that the tax on their benefit is deducted correctly. NOTE: At the end of the tax year or the end of the car allocation, the residual amount rather than the standard amount will be processed 27

28 Reports to print Car List The Car List report can be printed by going to Company - Configure Company Car Details - Company Cars and clicking the Print button. It will print a list of all cars available and all the allocation records for each employee assigned to the car, in the current tax year. Car Benefit Summary To install the Car Benefit Summary, go to Reports - Library Selection - Summaries and select Car Benefit Summary. To print it, go to Reports - Print Summaries and select Car Benefit Summary. The Car Benefit Summary will show Employee, Registration No., Make, Model and Car Benefit for the pay period selected. 28

29 Appendix 3 - Apprenticeship Levy What is the apprenticeship levy and who pays it? Levy on UK employers will fund growth in the apprenticeship programme The levy will come into effect on 6 April 2017, at a rate of 0.5% of an employer s total pay bill (where there is Employer NI Liability), paid through PAYE All employers have an allowance of 15,000 to offset against their levy liability. The levy allowance is not a cash payment The allowance means that only UK employers with an annual pay bill of more than 3 million are liable to pay the levy It is 0.5% of an employer s total pay bill (where there is Employer NI Liability) in excess of 3 million for the whole year E.g. an employer with an annual Pay Bill value of 3,000, will pay ( 3,000,200*0.5%) = 1. Anything less than 3,000, will result in a levy of 0 at month 12, due to rounding rules The calculation is on a monthly cumulative basis similar to a tax calculation. An employer will receive an Apprenticeship Allowance of 1250 per month. If the value in the first month does not exceed 1,250, nothing will be due. If the cumulative value at month 2 does not exceed 2,500, nothing will be due etc. Levied Employer Non-Levied Employer Employer of 250 employees, each with a gross salary of 20,000 Pay bill: 250 x 20,000 = 5,000,000 Levy sum: 0.5% x 5,000,000 = 25,000 Allowance: 25,000-15,000 = 10,000 annual levy payment Employer of 100 employees, each with a gross salary of 20,000 Pay bill: 100 x 20,000 = 2,000,000 Levy sum: 0.5% x 2,000,000 = 10,000 Allowance: 10,000-15,000 = 0 annual levy payment How? Employers will calculate, report and pay their levy to HMRC, through the Pay As You Earn (PAYE) process alongside income tax and National Insurance Single employers with multiple PAYE schemes will only have one allowance Connected employers - may share one allowance between employers 29

30 What value of apprenticeship levy allowance should I set? 1. The maximum level of apprenticeship levy allowance for 2017/2018 is 15, The levy allowance is on a per PAYE scheme basis i.e. 15,000 per PAYE Scheme 3. For a group of associated companies the levy allowance is 15,000 per group of companies. The levy can be split across multiple companies but the sum cannot exceed 15,000 Example 1 All employees in the PAYE scheme are contained in this payroll company and the PAYE Scheme is not part of a larger group. For any value pay bill i.e. < or > 3,000,000 Apprenticeship Levy allowance should be set to 15,000 Example 2 The PAYE scheme is split across multiple companies in this payroll system and it is not part of a larger group. Sum of pay bill does not exceed 3,000,000 Company A has an estimated Annual Pay bill per year of 1,000,000 Company B has an estimated Annual Pay bill per year of 1,000,000 In order to stop any apprenticeship levy being calculated the allowance is apportioned across the two companies: Company A - Apprenticeship Levy allowance should be set to 7,500 Company B - Apprenticeship Levy allowance should be set to 7,500 Example 3 The PAYE scheme is split across multiple companies in this payroll system and it is not part of a larger group. Sum of pay bill does not exceed 3,000,000 Company A has an estimated Annual Pay bill per year of 2,000,000 Company B has an estimated Annual Pay bill per year of 800,000 Company C has an estimated Annual Pay bill per year of 200,000 In order to stop any apprenticeship levy being calculated the allowance is apportioned across the three companies: Company A - Apprenticeship Levy allowance should be set to 10,000 Company B - Apprenticeship Levy allowance should be set to 4,000 Company C - Apprenticeship Levy allowance should be set to 1,000 30

31 Example 4 The PAYE scheme is split across multiple companies in this payroll system and it is not part of a larger group. Sum of pay bill exceeds 3,000,000 Company A has an estimated Annual Pay bill per year of 2,000,000 Company B has an estimated Annual Pay bill per year of 2,000,000 Company C has an estimated Annual Pay bill per year of 2,000,000 In order to calculate the correct apprenticeship levy, the allowance is apportioned across the three companies: Company A - Apprenticeship Levy allowance should be set to 5,000 Company B - Apprenticeship Levy allowance should be set to 5,000 Company C - Apprenticeship Levy allowance should be set to 5,000 Note: Since the pay bill of 3,000,000 is exceeded by adding Company A and Company B, the allowance could be apportioned as follows and the results would be the same Company A - Apprenticeship Levy allowance should be set to 7,500 Company B - Apprenticeship Levy allowance should be set to 7,500 Company C - Apprenticeship Levy allowance should be set to 0 Example 5 The PAYE scheme is split across multiple companies in this payroll system and it is not part of a larger group. Sum of pay bill exceeds 3,000,000 in a single company Company A has an estimated Annual Pay bill per year of 8,000,000 Company B has an estimated Annual Pay bill per year of 6,000,000 Company C has an estimated Annual Pay bill per year of 1,000,000 Note: In this example the full allowance will be used in Company A so there is no need to apportion the value. Company B and Company C can be set to zero Company A - Apprenticeship Levy allowance should be set to 15,000 Company B - Apprenticeship Levy allowance should be set to 0 Company C - Apprenticeship Levy allowance should be set to 0 A new App. Levy column has been added to the Employer Payment Summary screen, to the right of CIS Suf. You are able to enter/amend the value for Apprenticeship Levy in the Current Month row or the total row against the month itself, as with any other EPS values. Reports Apprenticeship Levy has been added to the EPS Summary Report and the EPS Confirmation Report. 31

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