What’s New in Payroll - UK & Ireland SAP Users Group · PDF fileWhat’s New in...

What’s New in Payroll

SAP

November 2011

Maureen Gregory Daphne Jacob

Local Product Manager Associate Manager

SAP UK and Ireland Sap Labs, Bangalore.

© 2011 SAP AG. All rights reserved. 2

Agenda

Forthcoming Legal Changes

End of Year changes

Start of year changes

Auto Enrolment for Pensions

Real Time Information

Development requests

Legal Changes


Forthcoming Legal Changes GB

End of Year 2011/12

P60, P14 and P35 Sapscript Changes

ASPP

Text Changes for LEL - PT and PT to UAP

XML Schema Changes


Forthcoming Legal Changes GB

Start of Year 2012/13

Ceasing of COMPS NI scheme

Changes to tax bands and emergency code uplift to 810L from 06.04.12

Changes to NI rates, rebates and thresholds

Statutory Payment rates form April 2012 (SMP etc)

Official Interest rates

Company Car CO2 values

Notional Pensions Earnings Cap

Pensions Annual Allowance currently £50,000

Child Maintenance Reporting (CMEC)

Student loan threshold

We are planning to deliver all of these legal changes in the January CLC


Year End 2011 for Ireland

P35 XML Version 7

ALV delivered in April, note number 1575932

XML delivered in September support pack, note number 1616930

Enhancements to XML for employees with tax exclusion orders delivered in October CLC, note number

1630321

EP60

Basic solution already delivered earlier this year

Enhancements will be included in the December .sar file

New format P60 for 2011 to include USC data

No requirement for a USC certificate at year end

Form is currently being tested in the UK and will be included in the December .sar file


Start of Year 2012 for Ireland

Cumulative USC solution

USC will be calculated on a cumulative basis effective 1.1.2012

No longer a requirement for software to apply special processing for individuals aged 70 or over, medical

card holders or individuals with a tax exclusion order

No need for an annualisation process in 2012

No requirement to issue a USC certificate if an employee leaves in 2012

New P2C file format for 2012

New ROS P45 file format for 2012

Other changes announced in the budget on December 6th whatever they may be.

Plan to deliver all the above in the December .sar file


How to Get the Changes

Plan to deliver the 2012 Budget changes and other end of year and start of year changes in a .sar file

in December 2011

Release date for the .sar file will be determined after the budget when we know the extent of the

additional changes

Customers should have applied the following in order to apply the year end .sar file

June synchronisation support pack

October CLC

Auto Enrolment for Pensions


Auto Enrolment of Pensions

Introduction of Auto enrolment into pension schemes according to the guidelines

set down by the Pensions Regulator

Effective date known as Staging date

Date based on number of employees in a company

Earliest staging date will be July 2012

We will provide functionality within the payroll to identify eligible employees not

contributing to a pension scheme and will enrol them automatically.

Functionality still in the design phase

We will not be providing interfaces to specific pension providers.

Real Time Information


Real Time Information – Background

HMRC considered introducing Centralized Deductions where employers would send gross

payment values for each employee to HMRC each pay period and pay over to the Collector of

Taxes the Gross amounts

HMRC would then calculate the tax and NI due on these payments, ‘deduct’ it from the

gross payments and then remit the balance to the employees bank account.

These proposals were met with huge amounts of dissent and were ‘shelved’.

The GB government will now introduce Real Time Information (RTI) to improve the

operation of Pay As You Earn (PAYE).

It will make the PAYE system easier for employers and HM Revenue & Customs (HMRC) to

operate

Employees will receive information more quickly from HMRC

It will help support the introduction of Universal Credits which is another government

initiative that is due to go-live in October 2013.


Real Time Information – Background

HMRC’s strategic solution is designed around using BACS as the communication channel

whereby employers would need to include the RTI data in the BACS file.

This BACS file would then be processed by Vocalink who would separate the RTI data from

the payment data, update the employees bank accounts at the same time as sending the RTI

data to HMRC.

HMRC hope to have all employers using RTI reporting by October 2013 in line with the

planned go-live of Universal Credits,

HMRC are not able to implement their strategic solution within the required timescales and

therefore an interim solution will be used.

The interim solution will allow employers to use their current forms of communication with

HMRC but the requirement is that the employer must send RTI data to HMRC at the same

time as the payments are made to the employee. These files can be sent using EDI or the

Internet.

A hash must be sent on the RTI Full payment submission file for each employee and the

same hash must be send from BACS to HMRC so that the payment can be matched to the

employee.


Real Time Information - Submissions

FPS – Full Payment Submission

The main RTI submission type giving a breakdown of the amounts calculated and paid for each

employee/pensioner on each pay day

EPS – Employer Payment Summary

A monthly report to reconcile the amounts reported on the FPS file with the amounts paid over to the

Collector of Taxes

EAS – Employer Alignment Submission

This file is used to align the data on the employer database with the data held by HMRC. The file

should contain all records that have been active in the current tax year and include new start

dates/leaving dates where applicable. This submission must be sent to HMRC prior to sending the first

FPS submission.

NVR – NINo Verification request.

This submission can be used to very NI Numbers for individual employees or to initiate the process of

requesting a NI No where the employee does not have one.


Interim Solution of the Full payment submission

Employer

Employer

BASS

Government

Gateway

BACS

# created by

Vocalink

RTI data with

#

Payment Instruction with

RTI indicator /xxx

HMRC Match

Success message

An RTI file should be sent to HMRC

for each payroll run as soon as the

payment file has been sent to BACS


RTI Reporting

RPCFPSG0 – Processing of FPS submission

Ability to process by payroll area, multiple payroll areas within the same tax reference, small selection

of employees or a single personnel number if required.

Test in live option,

New submission,

Re-Submissions after errors at the gateway,

Clean Sweep

Reads tables RTI and RTINI from the payroll cluster

Processes data from BADI if applicable

Generates the 64 char. Hash using the RTI indicator for those employees paid by BACS.

Generates a Global ID unique for each submission and updates tables RTI in the cluster with this ID

Performs validations

Output options – ALV and XML

Submission to Gateway using BC or PI dependent on the R/3 release.

Ability to process by payroll area, multiple payroll areas within the same tax reference, small selection

of employees or a single pernr if required.


RTI Reporting

RPCEPSG0 – Employer payment Summary

Test in Live Option

Period by period declaration data of year to date values , e.g. SMP recovered, CIS deductions.

This report MUST be processed every month showing the year to date values if applicable.

Must also be sent if there is nothing to declare to HMRC

No processing carried out by this report

End of year declaration available when processing the final period of the tax year (Old P35

declarations)

Final declaration also available at any time during the year for a ceased scheme.


Submission to Gateway using BC or PI dependent on the R/3 release.


RTI Reporting

RPCEASG0 – Employer Alignment Submission

Processed by tax reference.

Can be used at other times to synchronize data with HMRC if required


RPCDTAG0 –Pre-DME

Generates the random RTI Indicator beginning with a solidus

Updates table RTI in the cluster with this indicator

FPS report checks for the RTI indicator to ensure that the pre-DME has been run.

RPCRTI_DISP

Used to display previous submission data.

Can be used to display employee records in error at the gateway.

RPCNVRG0 – NINo Verification Report – this report is not yet available


Business Process Using SAP

I. Process payroll

II. Run FPS program in Test in Live to check for errors at the gateway.

III. Correct any data errors

IV. Run Pre-DME

V. Run ‘live’ FPS program and submit file to gatewway.

VI. This process should be repeated in line with each BACS run

VII. After the final run in the period or if there is only one payment run in the month, the best

practice is to exit the payroll prior to sending the BACS file and the FPS Submission

VIII. Process the Employer Payment Submission (EPS)


Master Data – Infotype 0065

Changes to Infotype 0065

New Tab called Tax Details driven by the go-live date in feature GBCHG

Tax code source now has 6 options

Starter – Employee

Starter – ExPat

Starter – Pensioner

HMRC – P6

HMRC – P9

HMRC – Uplift

All other fields available for update will be determined by the chosen tax code source



Infotype 0065 contd.

Tax code source is Starter – Employee

Tax Code and Tax Basis

Previous Earnings and Previous Tax

Starter Declaration

Tax code source is Starter – Expat


Starter Declaration

Tax code source is Starter – Pensioner



Annual Pension

Recently Bereaved Indicator

Starter Declaration



Infotype 0065 contd.

Tax code source is HMRC – P6



Incoming XML Process ID

Tax code source is HMRC – P9


Incoming XML Process ID

Tax code source is HMRC – Uplift





Changes to Infotype 0088

Additional Statutory Paternity Pay

Subtypes STPA and STPB

Partner Details added

Last Name, First Name, Middle Name, Initials and NINo.


Business Process Considerations

In-Year Movements

Starters and Leavers will be reported as part of the FPS report

You will not be able to send In-Year movement to HMRC after April 2013

You should not produce P45 statements for leavers after April 2013

During the pilot phase, it will still be necessary to produce parts 2 and 3 of the P45 to hand to the leaver

but the notification to HMRC will be incorporated in the FPS.

There will still be a requirement to produce a leaver statement to employee showing taxable pay to

date, tax paid to date and the Tax code used.

Payslips are acceptable if these values are provided

New employer should use the tax code from a leaver statement provided by the new start.

Employers should use the taxable pay and tax paid details from a leaver statement but cannot report it

to HMRC

The Year-End reporting to HMRC will become redundant, i.e. P35 and P14

Still required to provide form P60 for employees active on 5th April.


New Software Delivered

New programs

RPCFPSG0

RPCEPSG0

RPCEASG0

RPCRTI_DISP

Amendments to RPCP45GN and RPCDTAG0

Features

GBIT9

GBIEI

Amendment to GBCHG – Node 11

Payroll function

GBRTI in Schema GEND

Personnel calculation rules

GRTI

G048


New Software Delivered

Processing class 48

Specification 1 - cumulates into /177

Specification 2 – cumulates into /176

New technical wagetypes /171 Net additions

/172 Benefits paid through the payroll

/173 Benefits processed in the payroll for tax and NI

/174 Benefits processed in the payroll for Tax only.

/175 Benefits processed in the payroll for NI only.

/176 EE Net Pension deduction

/177 EE Pre-tax pension deduction

/520 RTI Net pay

NHWK No. Hours worked (this will overwrite the hours read from infotype 0007)

New/amended model company wagtypes A080 Expenses

A081 Expenses Niable only.

A082 Taxable Benefit

A083 Tax/Ni Benefit

A084 Niable Benefit


Real Time Information Process

RTI Process video.


Development Requests


Development Requests.

E Filing of P11D

E Filing of P46 Car

ESS for P60

ESS for P11D


Questions

Thank You!

Maureen Gregory Daphne Jacob

Local Product Manager Associate Manager

SAP UK and Ireland Sap Labs, Bangalore.

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