Release Notes GP Payroll

Transcription

1 18/02/2014 Release Notes GP Payroll April 2016

2 Release Notes Welcome to your software update for the Tax Year end 2015/16. This update of the software includes some new features and enhancements together with the necessary legislative changes for the new tax year. These notes provide information on all the improvements to the software; for detailed information on legislative changes click here. If you encounter any difficulties please visit: Contents PAYE Legislation... 4 National Insurance... 4 Apprenticeship Ends Date... 4 Cumulative Figures for NIC... 4 SCON Number... 5 End of Year Transfer... 5 Reports... 5 Government Rates and Parameters Summary... 5 Tax... 6 Tax/NI Parameters... 6 Scottish Tax Regime... 6 Automatic Change of Tax Codes... 6 Tax, NI, SSP, SMP, SAP, SPP & ShPP... 6 Tax Code Changes... 6 Earnings Arrestment Scotland... 6 Student Loan Plan Type Employee Details... 7 Statutory Payments... 7 ASPP... 7 Additions/Deductions... 7 User Defined Additions... 7 DEA Rate... 7 Attachment Report... 8 RTI... 8 Employer Payment Summary (EPS)... 8 Earlier Year Update (EYU)... 8 Full Payment Submission (FPS)

3 Employment Allowance... 8 Setup/ Options Re-arrange Employee Order... 8 Pensions... 9 Pensions Legislation... 9 Pension Parameters... 9 Early Retirement Reduction Buy Out (ERRBO)... 9 ERRBO Contributions... 9 Employees to be enrolled this period Tax Relief at source Pension Funds NOW Pension Pension Output Files Pension Fund Remittance Scottish Widows Scottish Widows Pension File Other Improvements BACS

4 GP Payroll April 2016 Release PAYE Legislation National Insurance Following changes in legislation from April 16, software amendments have been made to: Include Under 25 s Apprentice NI letter H Add the new earnings threshold Apprentice Upper Second Threshold (AUST) Remove the UAP threshold Remove contracted-out NI Letters and rates (inc. D, E, L, I and K) Removal of NI Letters F, G & S Remove ECON and SCON fields Add an Apprenticeship End Date field Remove reference to 1a, 1b, 1c, 1d etc Apprenticeship Ends Date A new NI Letter H has been added to the software to cater for Under 25 s Apprenticeship NI. A new field has been added to the Employee Details Employment Details section, Apprenticeship End Date. During payroll calculation, if your pay date is after the Apprenticeship Ends Date (and the employee is over 21 the NI rate will change automatically from H to A. If the employee is under 21 the NI rate will change to M. Cumulative Figures for NIC In Employee Details Cumulative Figures Cumulative Figures for NIC the following columns have been renamed: 1a has been renamed Total Earnings at LEL 1b has been renamed Total Earnings above LEL up to PT 1c has been renamed Total Earnings above PT up to UEL 1e has been renamed Total Employee and Employer NIC 1f has been renamed Total Employee NIC 4

5 SCON Number The SCON No. field has been removed from the following screens, accessed via Setup/ Options 4 Practice Pension Details Auto Enrolment Details Pension Fund Details: NHS Pension Scheme Details Stakeholder Pension Scheme Details Alternative Pension Scheme Details End of Year Transfer During the End of Year Transfer any employees on a contracted out letter will be changed automatically as detailed below: 2015/2016 COSR NI Letter 2016/2017 Equivalent NI Letter D Contracted Out E Reduced Contracted Out L Contracted Out Deferral A Normal B Reduced J Deferral I Under 21 Contracted Out M Under 21 K Under 21 Contracted Out Deferral Z Under 21 Deferral Reports Any reference to NI Employers and NI Employees Rebate has been removed from reports due to the abolition of contracted-out NI numbers. Reports have also been amended to cater for the addition of AUST and the removal of the UAP. In addition ECON and SCON numbers have been removed from reports. Government Rates and Parameters Summary Amendments have been made to Setup/ Options 12 Tax/NI Parameters to include the new NI letter H along with the parameters for AUST and the new Scottish Tax Rates. Also added to the Student Loan section are Student Loan Plan Type 1 and Student Loan Plan Type 2. Reference to the UAP, Contracted-Out Letters and Max childcare [per month] have been removed. Max childcare [per month] will still be displayed on the Government Rates & Parameters Summary report. In the Employee and Employer Rates, the PT to UAP row has been renamed PT to UEL and in the Employee NI Rates, row LEL to ST has been renamed LEL to PT. 5

6 Tax Tax/NI Parameters A new button Tax Rates and Bandwidths has been added to Setup/ Options 12 Tax/NI Parameters. Click this button to view the tax rates and bandwidths in use for Scotland and also the rest of the UK. For a printed copy of the Government Rates and Parameters Summary report, click Print a Summary. Scottish Tax Regime Scottish Rate of Income Tax (SRIT) has been added to the software including, from April 2016, the tax code prefix S which is the Scottish Tax Regime indicator. The tax code prefix will determine which tax rates/bands are used during payroll calculation. Automatic Change of Tax Codes In Setup/ Options 11 Automatic Change of Tax Codes, a new drop-down menu has been added Employees to be included in tax code change. Here you can select from the following options: All Employees Scottish Tax Codes Only Rest of UK Tax Codes Only This feature allows you to uplift certain categories of tax codes only, for instance Scottish Tax Codes Only would amend tax codes beginning with S. Tax, NI, SSP, SMP, SAP, SPP & ShPP The rates for tax, NI and statutory payments have been updated for 2016/2017. Tax Code Changes In line with legislative changes, moving into the new tax year (2016/2017) will automatically uplift tax codes as required. Earnings Arrestment Scotland The Earnings Arrestment Scotland tables have been updated for the 2016/2017 tax year. 6

7 Student Loan Plan Type 2 Student Loan Plan Type 2 has been introduced with effect from April The annual thresholds for Student Loans are: Plan Type 1-17,495 Plan Type 2-21,000 Employee Details In Employee Details tab, with Student Loan set to Yes, you can choose the Plan Type 1 or Plan Type 2 indicator. During the End of Year Transfer, employees with existing Student Loan deductions will be automatically updated to Plan Type 1. Statutory Payments ASPP All references to Additional Statutory Paternity Pay (ASPP) have been removed from the software or replaced with ShPP. ASPP has been abolished and is therefore no longer required from 6 th April Additions/Deductions User Defined Additions To allow for Flexibly Accessing Pension Rights and Pension Death Benefit payments to be made to employees, in Employee Details Pay Details User Defined Additions Add or Edit the following tick boxes have been added: Payment Flexibly Accessing Pension Rights Payment Pension Death Benefit These indicators, if ticked, will be included in the FPS to report to HMRC. These options have also been added to the Payroll Calculations Temporary Adjustments Extra Payments screen. DEA Rate A new higher rate DEA type has been introduced. To cater for this in the software, in Employee Details Pay Details Attachment Orders Attachment for Type of Order: the existing Direct Earnings Attachment (DEA) option has been renamed Direct Earnings Attachment (DEA) Lower Rate a new Direct Earnings Attachment (DEA) Higher Rate option has been added 7

8 Attachment Report The Attachment Report now includes both Direct Earnings Attachment (DEA) options. RTI Employer Payment Summary (EPS) The EPS schema has been updated in line with legislation. In tax year 2015/16 the Questions & Declarations are visible but you do not need to complete them. The Questions & Declarations have been removed for 2016/17 tax year as they are no longer required. Earlier Year Update (EYU) The EYU schema has been updated in line with legislation. Changes include: Renaming of OSPP to SPP Renaming of ASPP to ShPP Dummy SCON number no longer accepted The addition of NI letters M, Z, I and K The addition of M & N tax codes Full Payment Submission (FPS) The FPS schema has been updated in line with legislation. Changes include: The removal of the Questions & Declarations (for the final submission for tax year 2015/16, the Questions & Declarations will be visible but are not required) Removal of ECON and SCON along with NI letters D, E, L I and K Addition of NI letter H Inclusion of tax code prefix S for Scottish Tax Regime Removal of E Micro Employer using temporary on or before relaxation from the list of reasons for late filing Employment Allowance From tax year 2016/2017, the maximum amount of Employment Allowance that can be reclaimed has increased from 2,000 to 3,000. If you have the Employment Allowance indicator set to Yes, the Emp. Allowance Amount value will be set to 3,000 during the End of Year Transfer process. Setup/ Options Re-arrange Employee Order Please Note: when using Re-arrange Employee Order, if you have not sent an FPS since the last time the employee order was changed then you should not use this feature. Changing the order of employees more than once in a pay period will cause duplicate records to be created by HMRC when the FPS is sent. 8

9 Pensions Pensions Legislation Pension Parameters Pension Parameters for Auto Enrolment have been updated for 2016/2017. Early Retirement Reduction Buy Out (ERRBO) From 1 st April 2015 members of the NHS Pension Scheme and their employers can elect to pay extra contributions to reduce, or remove the early retirement reduction if an employee retires after age 65 and before normal pension age. This is known as an ERRBO agreement. An application for an ERRBO agreement must be made within three months of joining the 2015 Scheme for it to be effective from your first Scheme year. You can apply at any time but if this is not done within 3 months of joining, it will be effective from the following scheme year. ERRBO Contributions To cater for Early Retirement Reduction Buy Out, on the Employee Details Pension Details tab if you select Include in NHS pension scheme and Employee is a member of the NEW April 2015 NHS Pension Scheme, the Added Years button will be renamed ERRBO Contributions. Click the ERRBO Contributions button to open the new NHS Pension Scheme ERRBO Contributions screen. From this screen you can enter the Early Retirement Reduction Buy Out contributions for Employee and Employer. This can be either an extra fixed monthly payment or an extra percentage of salary. Please Note: The total Employee and Employer contribution cannot exceed 4.86%; this is the maximum ERRBO Contribution that can normally be used and is based on age. For details on the contribution rates click here. The following reports have been amended to include the ERRBO Contribution: Payslip plain paper Payslip plain paper laser security Pension Summaries Monthly Payments to Pension Agency (GP1) (England and Wales, Northern Ireland) SD55 (and SD55 Leaver) ( England and Wales) SD55 (and SD55 Leaver) Northern Ireland Monthly payments to Pension Agency (Scotland) NSR03/NSR02 (Scotland) Summary of Contributions Received (Scotland) Monthly Summary P11 9

10 Employees to be enrolled this period A new column has been added to Payroll Calculations Employees to be enrolled this period. This column is only enabled for employees in the NHS Pension Scheme and allows you to indicate whether they are Full Time or Part Time (the default for this column is Full Time). Clicking OK after selecting Full Time or Part Time from this screen will populate the relevant radio button in Employee Details Pension Details. Tax Relief at source We have added a Deduct basic rate tax tick box to the following screens: Setup/ Options Practice Pension Details Auto Enrolment Details Pension Fund Details Stakeholder Pension Scheme Details Setup/ Options Practice Pension Details Auto Enrolment Details Pension Fund Details Alternative Pension Scheme Details Employee Details Pension Details Stakeholder Pension Scheme Details Employee Details Pension Details Alternative Pension Scheme Details This is to enable you to reduce an employee s pension contribution by the basic rate of tax (currently 20%), allowing the pension provider to claim the tax back and add it to the employee s pension pot. With Deduct basic rate tax selected in Pension Fund Details, if an employee is auto enrolled into the Stakeholder Pension Scheme or Alternative Qualifying Pension Scheme the indicator will be ticked in Employee Details Pension Details Stakeholder Pension Scheme Details or Alternative Qualifying Pension Scheme Details. Pension Funds To enable you to create an alternative pension for auto enrolment that uses pensionable earnings only, rather than AE thresholds, we have added the following options to the Pension Type dropdown list on the Setup/ Options 4 Practice Pension Details AE Configuration Tool Step 5 Pension Provider Details and also Setup/ Options 4 Practice Pension Details Auto Enrolment Details Pension Fund Details Alternative Pension Fund Details screen: Pensionable Earnings Salary Sacrifice Pensionable Earnings with Tax Relief On the Setup/ Options 4 Practice Pension Details Auto Enrolment Details Pension Fund Details Alternative Pension Fund Details screen, a new button Configure Pensionable Earnings is now available. From here you can select the pay elements to be included in the pensionable earnings used for calculation of the pension deduction. Any user-defined additions and deductions to be included in pensionable pay will need to be set up in Employee Details Pay Details. 10

11 NOW Pension If NOW is your pension provider and is also providing pension communications to your employees, you need to ensure that: You have a Pay Code set up in the Pension Fund The File Output is set to This fund + no fund To do this: From the Setup/ Options select 4 Practice Pension Details Auto Enrolment Details Pension Fund Details Select your Now Pension Fund and click Edit Select Pension Output File Details and ensure: Output File is set to Now Pension Include Employees is set to This fund + no fund Enter the relevant Pay Code Pension Output Files Following legislative changes, when creating your Pension Output File, you can now exclude employees for up to 3 months from the automatic enrolment date. Pension Fund Remittance This above change is also reflected when creating the Pension Fund Remittance report. Scottish Widows The Scottish Widows V3 output file has been updated in line with Scottish Widows requirements. Scottish Widows Pension File A new Scottish Widows Contributions pension file has been added to Setup/ Options 4 Practice Pension Details Auto Enrolment Details Create Pension File. This file will not include information about leavers or new members; any required information will need to be completed online and you should receive a prompt in this regard from Scottish Widows. Other Improvements BACS A new BACS format has been added to Setup/ Options Direct Banking Select Bank system drop-down list, RTI BACS Bottomline. This matches the format of RTI BACS with the inclusion of the processing date added at the end of the file (field 12). 11

12 Additional Software and Services Available IRIS AE Suite The IRIS AE Suite works seamlessly with all IRIS payrolls to easily manage auto enrolment. It will assess employees as part of your payroll run, deduct the necessary contributions, produce files in the right format for your pension provider* and generate the necessary employee communications. IRIS OpenPayslips Instantly publish electronic payslips to a secure portal which employees can access from their mobile phone, tablet or PC. IRIS OpenPayslips cuts payslip distribution time to zero and is included as standard with the IRIS AE Suite. IRIS Auto Enrolment Training Seminars Choose from a range of IRIS training seminars to ensure you understand both auto enrolment legislation and how to implement it within your IRIS software. Useful numbers HMRC online service helpdesk Tel: Fax: helpdesk@ir-efile.gov.uk HMRC employer helpline Tel: Tel: (new business) Contact Sales (including stationery sales) For IRIS Payrolls Tel: sales@iris.co.uk For Earnie Payrolls Tel: earniesales@iris.co.uk Contact support Your Product Phone IRIS PAYE-Master payroll@iris.co.uk IRIS Payroll Business ipsupport@iris.co.uk IRIS Bureau Payroll ipsupport@iris.co.uk IRIS Payroll Professional payrollpro@iris.co.uk IRIS GP Payroll support@gppayroll.co.uk IRIS GP Accounts gpaccsupport@iris.co.uk Earnie or Earnie IQ support@earnie.co.uk IRIS & IRIS Software Group are trademarks IRIS Software Ltd 06/2015. All rights reserved Call: for IRIS or for Earnie Visit: iris.co.uk