Another Year in Payroll. Daphne Jacob, Ajit Thomas and Maureen Gregory Globalisation Services at SAP Month 11, 2014

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1 Another Year in Payroll. Daphne Jacob, Ajit Thomas and Maureen Gregory Globalisation Services at SAP Month 11, 2014

2 Agenda Legal Changes 15/16 Under 21 NICs 50% Tax cut-off New Tax code suffix Statutory Adoption Pay RTI reporting FPS EPS EYU PI Shared Parental Leave Payroll Control Report Questions 2014 SAP SE or an SAP affiliate company. All rights reserved. Customer 2

3 Legal Changes for 15/16

4 Legal Changes for 15/16 Under 21 NICs

5 NIC for Employees under 21 from 6 April 2015 From April 2015, the employer liability to National Insurance contributions for all employees up to the age of 21 will change. A new threshold is introduced Upper Secondary Threshold (UST) For tax year 15/16, the UST threshold value will be the same as the Upper Earnings Limit (UEL per week, 3524 per month. This will be confirmed in the budget). There will be no employer contributions due up to this threshold There is no change for the employee 2014 SAP SE or an SAP affiliate company. All rights reserved. Customer 5

6 NIC for Employees under 21 from 6 April new NI Cats are being introduced. Maintained in V_T5G42 with corresponding limits and percentages in T5G_NICLIM and T5G_NICPCT Category Over 21 Under 21 (New) Not Contracted out standard rate A M Contracted out standard rate D I Not Contracted deferred rate J Z Contracted out deferred rate L K Mariners Not contracted out R Y Mariners Contracted out N V 2014 SAP SE or an SAP affiliate company. All rights reserved. Customer 6

NIC for Employees under 21 from 6 April 2015 A new constant NIUST in T511K with validity from 06.04.

8 NIC for Employees under 21 from 6 April 2015 Master Data Checks Check on IT0069 on age as at pay date of the period in which the start date of the infotype falls and NI category. An error message will be thrown if the employee does not have a valid NI category input for their age at the pay date. EE under age 21: Input valid NI category EE over age 21: Input valid NI category, An error will also be thrown if the start date of the infotype is prior to NI Category not valid before Payroll Checks Check in payroll for age and valid NI category. Employee will be rejected if the NI category is incorrect. New exception message; 764 Employee is approaching age 21; date of birth is xx.xx.xxxx IT 0069 now mandatory in the payroll Default NI category processing via feature GNICD becomes obsolete 2014 SAP SE or an SAP affiliate company. All rights reserved. Customer 8

9 NIC for Employees under 21 from 6 April 2015 DDIC Changes PC2N1 NIC New field AMTFROMUST added to hold the Niable pay UST to UEL Existing field AMTERTUEL re-used to hold the Niable pay UAP to UST P2VN2 CNIC New field AMTFROMUST added to hold the Cumulated Niable pay UST to UEL Existing field AMTERTUEL re-used to hold the Cumulated Niable pay UAP to UST T5G_DTONI New field AMTFROMUST added to hold the Niable pay UST to UEL Existing field AMTERTUEL re-used to hold the Niable pay UAP to UST 2014 SAP SE or an SAP affiliate company. All rights reserved. Customer 9

10 NIC for Employees under 21 from 6 April 2015 Payroll Log Payroll cluster and NI calculation summary log have been modified to reflect these changes RTI Table RTINI has NOT been modified to include the new UST field as there are no changes to the NI reporting for FPS SCON reporting will include the new C/O NI Categories I, K, V 2014 SAP SE or an SAP affiliate company. All rights reserved. Customer 10

11 NIC for Employees under 21 from 6 April 2015 Calculation examples using 4000 earnings per month Calculations are based on current 2014/15 thresholds Category M not contracted out standard rate. Employer only pays contributions on earnings above the UST 4000 less UST 3489 = 511 x 13.8% = Category I Contracted out standard rate. Employer 4000 less UST 3489 = 511 x 13.8% = Employer Rebate on earnings between the LEL to ST and ST to UAP LEL to ST 182 x 3.4% = 6.19 ST to UAP 2674 x 3.4% = Total Rebate = Total Employer NICs less rebate = SAP SE or an SAP affiliate company. All rights reserved. Customer 11

NIC for Employees under 21 from 6 April 2015 2014 SAP SE

Table NIC April 2015 2014 SAP SE or an SAP

14 NIC for Employees under 21 from 6 April 2015 Report - RPUNIUST_IT0069 Utility report that can be used to assess the age of the employees and create a new record in IT0069 for those employees under 21 on or before first pay date of the tax year 2015/16 Employees who are under 21 on or before the will have their IT0069 delimited. A new record will be created with the start date as with the relevant NICAT. The report can be processed only until the first pay date of the tax year 2015/16 on or after If processed after this date, the report will not return any results If the report is processed more than once for the same pernr then it would not process the record If there is already an IT0069 record with the begda as prior to this report being run, then the report will update the existing record with the new NI Category Report will throw an error if the employee does not have IT0002 or if IT0069 could not be locked. If the already active employee does not have an IT0069 record then the report would not process these employees. The report can be processed in test and in live modes SAP SE or an SAP affiliate company. All rights reserved. Customer 14

16 Legal Changes for 15/16 50% Tax Cut-Off

17 Legal Changes 15/16 50% Tax Cut-Off The 50% cut-off will now be applicable for all tax codes and not just K codes. Delivered in note Support Pack; 600 B SAP SE or an SAP affiliate company. All rights reserved. Customer 17

18 Legal Changes for 15/16 New Tax Code Suffix

19 Legal Changes 15/16 New Tax code suffix With effect from tax year, a new 'Transferable tax allowance for spouses or civil partner will be introduced. A spouse or civil partner who is either not liable to Income Tax at all or not liable above the basic rate for a tax year will be entitled to transfer 1,050 of their personal allowance to their spouse or civil partner provided that the recipient of the transfer is not liable to Income Tax above the basic rate. The transferor s personal allowance will be reduced by 1,050. (Tax suffix code N) The spouse or civil partner receiving the transferred allowance (Tax suffix code M) will have their personal allowance increased by 1050 which will result in a reduced Tax liability of up to 210. Note Support Package: 600 B SAP SE or an SAP affiliate company. All rights reserved. Customer 19

20 Legal Changes for 15/16 Statutory Adoption Pay

21 Legal Changes 15/16 Statutory Adoption Pay (SAP) Statutory Adoption Pay will mirror maternity pay for adoptions matched on or after 5 April 2015 New SAP Entitlement : 6 weeks paid at 90% of salary plus 33 weeks paid at the lesser of 90% or the flat rate currently The 26 week continuous employment rule for SAP will be abolished. SAP will therefore become a day one right. Additional Statutory Paternity Pay ASPP With the introduction of Shared Parental Leave and Pay this will now replace ASPP ASPP will still apply before the 05 April 2015 so both ShPP (early births) and ASPP will run together for 2014/15 and into 2015/16 For 2015/16 the ASPP RTI data items will be renamed to ShPP. So both ASPP and ShPP will be reported in this field SAP SE or an SAP affiliate company. All rights reserved. Customer 21

22 Legal Changes for 15/16 RTI Reporting

23 Legal Changes 15/16 RTI Reporting - Changes to FPS Namespace change to 2015/16 SCON and ECON validation extended to include new NI cats, I, K and V Temp SCON number no longer valid Additional Statutory Paternity Pay/Shared Parental Pay Year to date field (ASPPYTD) has been renamed to SHPPYTD. Statutory Paternity Pay Year to date field is renamed form OSPPYTD to SPPYTD Employee address will now be reported for all employees every period. This will be mandatory from April 2016 Previously this was only reported for new starts New data item 168 for reporting Pension Draw Down payments Flexibly Accessing Pension Rights this is fed by Wagetpye FAPR 2014 SAP SE or an SAP affiliate company. All rights reserved. Customer 23

24 Legal Changes 15/16 RTI Reporting - Changes to EPS Note Namespace to 2015/16 Tax month has been added to the EPS file Following fields have been renamed OSPP recovered SPP recovered ASPP recovered SHPP recovered NIC Compensation on OSPP to NIC compensation on SPP NIC compensation on ASPP to NIC compensation in SHPP Mandatory from April SAP SE or an SAP affiliate company. All rights reserved. Customer 24

25 Legal Changes 15/16 RTI Reporting - Changes to EYU Validation added SSP field no longer required and will be ignored if entered on spreadsheet for 14/15 New template with enhancements and corrections to headers. Note Support Package: 600 B / SAP SE or an SAP affiliate company. All rights reserved. Customer 25

27 Legal Changes for 15/16 Shared Parental Leave

29 P60

30 Legal Changes 15/16 No changes except tax year. Waiting approval from HMRC Following forms will be delivered: For printing: PDF Smartform Data only SAPscript to fit the template supplied by CDP For ing PDF Smartform 2014 SAP SE or an SAP affiliate company. All rights reserved. Customer 30

31 P11D

34 New RTI report

36 SxP Legal Changes

39 Statutory Payment Statistics SAP SMP SPPA SPPB STPA STPB 1% 73% 0% 25% 0% 0% 1) Not all Fathers/Partners take Paternity 2) Very few employees Adopt 3) Almost nobody transfers their SMP/SAP entitlement to their Spouse/Partner In the four years, since the introduction of ASPP, the 15 customers polled, had over 54,000~ cases of adoption, maternity and paternity. Less than 100 of those 54,000~ were for ASPP Will this change in the future??? 2014 SAP SE or an SAP affiliate company. All rights reserved. Customer 39

40 Statutory Payment Statistics: Outcome for ShPP/ShPL ShPP/ShPL effects the lowest number of employees and so has the lowest priority of all deliverables for April ShPP/ShPL will be delivered in December HRSP (available 22nd January 2015) PILOT PHASE We are looking for a customer to be a pilot. Until ShPP/ShPL has been piloted we will not know what the final solution will look like SAP SE or an SAP affiliate company. All rights reserved. Customer 40

42 Statutory Adoption Pay Statutory Adoption Pay is changing for Adoption Pay Periods that start on or after April 5 th 2015 (Sunday). OLD ENTITLEMENT: 39 Weeks Standard Rate NEW ENTITLEMENT: 6 Weeks Earnings Rate (i.e. 90% AWE) 33 Weeks Standard Rate 2014 SAP SE or an SAP affiliate company. All rights reserved. Customer 42

43 Statutory Adoption Pay Example: Overlapping adoptions on old and new rules OLD ENTITLEMENT : (39 weeks) NEW ENTITLEMENT : ( weeks) However, GBSXP does not support overlapping absences, so the overlap must be handled manually. A) The maximum number of whole weeks that can be paid under SAP standard should be paid (i.e. 12 weeks). The remaining SAP (i.e. 27 weeks) must be paid via IT0014. B) The data within the IT0088 records does not change. Only the validity of the records changes to apply the work-around 2014 SAP SE or an SAP affiliate company. All rights reserved. Customer 43

Statutory Adoption Pay OLD ENTITLEMENT : 01.02.2015 25.04.2015 (12 weeks) NEW ENTITLEMENT : 26.04.2015 28.

Statutory Adoption Pay First Adoption Second Adoption 2014 SAP

Statutory Adoption Pay The absence data (IT2001) and SAP data (IT0088) must be kept in-sync The First Adoption ends after 12 weeks. The Second Adoption receives the full 39 weeks. (N.B.

46 Statutory Adoption Pay The absence data (IT2001) and SAP data (IT0088) must be kept in-sync The First Adoption ends after 12 weeks. The Second Adoption receives the full 39 weeks. (N.B. the first 5 days are treated as non-qualifying days as they are outside the APP the validity which ends on starts on ) 2014 SAP SE or an SAP affiliate company. All rights reserved. Customer 46

Statutory Adoption Pay The First Adoption ends on 25.04.

The last 5 days in the month are treated as non-qualifying days as they are

47 Statutory Adoption Pay The First Adoption ends on and receives 12 weeks at the Standard rate. The last 5 days in the month are treated as non-qualifying days as they are outside the APP the validity of which starts on ! 2014 SAP SE or an SAP affiliate company. All rights reserved. Customer 47

Statutory Adoption Pay The Second Adoption

2015 and receives 4 weeks at the Earnings rate

Statutory Adoption Pay 2 more weeks at the

for the next 33 weeks 2014 SAP SE or an SAP

Statutory Adoption Pay Feature GOFFA The feature GOFFA has been extended to support the change-over from the old entitlements to the new entitlements, by adding a second character to the return value

50 Statutory Adoption Pay Feature GOFFA The feature GOFFA has been extended to support the change-over from the old entitlements to the new entitlements, by adding a second character to the return value of the feature. The first character is still X or. (N.B. only used for old entitlements) The second character mimics GOFFM and allows X, U, L or. (N.B. only used for new entitlements) 2014 SAP SE or an SAP affiliate company. All rights reserved. Customer 50

51 Statutory Adoption Pay Delivery Note PY-GB: GBSXP: Statutory Adoption Pay (SAP) 2015 Support Packages Software Component Release Support Package SAP_HRCGB 600 SAPK-600B5INSAPHRCGB 604 SAPK-60481INSAPHRCGB 608 SAPK-60809INSAPHRCGB 2014 SAP SE or an SAP affiliate company. All rights reserved. Customer 51

54 Statutory Shared Parental Leave/Pay (ADOPTION) CHANGES TO ADOPTION DUE TO SHARED PARENTAL LEAVE ADOPTION : Children placed on or after April 5 th 2015 CURTAILMENT : Shortening the ALP AND the APP : Up To 50 weeks ALP can be transferred : Up To 37 weeks APP can be transferred : Can be revoked before RTW RETURN TO WORK : Ends the APL (but not the APP!) 2014 SAP SE or an SAP affiliate company. All rights reserved. Customer 54

55 Statutory Shared Parental Leave/Pay (MATERNITY) CHANGES TO MATERNITY DUE TO SHARED PARENTAL LEAVE BIRTH : Babies due on or after April 5 th 2015 CURTAILMENT : Shortening the MLP AND the MPP : Up To 50 weeks MLP can be transferred : Up To 37 weeks MPP can be transferred : Can be revoked before RTW RETURN TO WORK : Ends the MPL (but not the MPP!) 2014 SAP SE or an SAP affiliate company. All rights reserved. Customer 55

56 Statutory Shared Parental Leave (BIRTH) BIRTH : Babies due on or after April 5 th 2015 : 26 weeks continuous employment into the QW CURTAILMENT : Shortening the MPP/MLP : Up To 50 weeks MLP can be transferred (Minimum 2 weeks) : Up To 37 weeks MPP can be transferred (Minimum 2 weeks) LEAVE : Taken in blocks of a week (or a multiple of a week) : Maximum of 3 blocks (but employer can allow more) : Three (maximum) notifications of intent : Need to record ShPL already taken by partner DECLARATION : Eligibility criteria have been met (no check required) 2014 SAP SE or an SAP affiliate company. All rights reserved. Customer 56

57 Statutory Shared Parental Leave (ADOPTION) ADOPTION : Children placed on or after April 5 th 2015 : 26 weeks continuous employment into the MW CURTAILMENT : Shortening the APP/ALP : Up To 50 weeks ALP can be transferred (Minimum 2 weeks) : Up To 37 weeks APP can be transferred (Minimum 2 weeks) LEAVE : Taken in blocks of a week (or a multiple of a week) : Maximum of 3 blocks (but employer can allow more) : Three (maximum) notifications of intent : Need to record ShPL already taken by partner DECLARATION : Eligibility criteria have been met (no check required) 2014 SAP SE or an SAP affiliate company. All rights reserved. Customer 57

Statutory Shared Parental Leave Recording the blocks of leave (new CALENDAR

Statutory Shared Parental Leave the blocks are immediately saved in the absences

61 Statutory Shared Parental Leave the user can then view the saved blocks when they are next in the Shared Parental Leave record and amend them if they so choose 2014 SAP SE or an SAP affiliate company. All rights reserved. Customer 61

62 Statutory Shared Parental Leave The Booking Rules You cannot refuse ShPP taken as a single block. You can have a 2 week discussion period for any other type of booking if you don t wish to immediately accept their booking. At the end of the 2 weeks your employee has 5 days to state their intention. The employee can change their arrangements twice (i.e. three separate bookings), but you can accept more changes if you wish. 8 weeks notice must be given for each booking SAP SE or an SAP affiliate company. All rights reserved. Customer 62

63 Statutory Shared Parental Pay (ADOPTION) ADOPTION : Children placed on or after April 5 th 2015 : 26 weeks continuous employment into the MW : AWE Check against the Weekly LEL at the MW : Flat rate for 2-37 weeks 2014 SAP SE or an SAP affiliate company. All rights reserved. Customer 63

64 Statutory Shared Parental Pay (BIRTH) BIRTH : Babies due on or after April 5 th 2015 : 26 weeks continuous employment into the QW : AWE Check against the Weekly LEL at the QW : Flat rate for 2-37 weeks 2014 SAP SE or an SAP affiliate company. All rights reserved. Customer 64

67 HR Renewal 2.0 Release Information : SAP Note Requirements : Based on SAP_HR 6.00 and : EhP7 : It is called SAP_HR 6.08 / EA-HR 6.08 Add-Ons Retrofited : SAP_HRCEE : SAP ERP HCM LOCSAE Delivery : Notes and HR SP : No CLC-s are to be released, yet 2014 SAP SE or an SAP affiliate company. All rights reserved. Customer 67

69 Delivery of DDIC objects via SNOTE DDIC objects are not supported by SNOTE Delivery with transport files are restricted to very rare cases UDO (Upport Downport Assistant) is to be used to deliver DDIC Changes 2014 SAP SE or an SAP affiliate company. All rights reserved. Customer 69

70 Delivery of DDIC objects via SNOTE - Overview Two notes are delivered: Note A contains the DDIC Changes Note B contains the other Changes Implementation Process: 1. Implement note A, which deliveres report RPUNTEG0_A or HIEUNOTE_A 2. Execute the generated note in UPDATE and in GENVIEW mode (if applicable) 3. Implement note B 2014 SAP SE or an SAP affiliate company. All rights reserved. Customer 70

Delivery of DDIC objects via SNOTE Implemenation of note A (DDIC note) DDIC authorization is required for the user executing the report RPUNTEG0_A If note B is already implemeted, report RPUNTEG0_A

72 Delivery of DDIC objects via SNOTE Implemenation of note A (DDIC note) DDIC authorization is required for the user executing the report RPUNTEG0_A If note B is already implemeted, report RPUNTEG0_A cannot be executed (note B is to be deimplemented) If relevant SP/CLC is implemented report RPUNTEG0_A cannot be executed any more If note A is implemented using user SAP, report RPUNTEG0_A cannot be executed 2014 SAP SE or an SAP affiliate company. All rights reserved. Customer 72

Thank you Contact information: Maureen Gregory

SAP UK Ltd Tel: +44 208 917 6153 2014 SAP SE

18/02/2014. IRIS PAYE-Master. Release Notes

18/02/2014. IRIS PAYE-Master. Release Notes 18/02/2014 IRIS PAYE-Master Release Notes 16/02/2015 Dear Customer, Welcome to your IRIS PAYE-Master software update for 2014/2015. This update of the software includes some new features and enhancements.