pegasus software payroll end of year 2014. pegasus software payroll end of year 2014 samantha...

Pegasus Software

Payroll End Of Year 2014

Pegasus Software


Samantha GarrettProduct Specialist

Agenda

Changes for completion of the 2013/2014 EOY

• End of Year Procedures

Changes for the Tax Year 2014/2015

• Legislation Changes• Starting the 2014/2015 Tax Year

What is auto enrolment?

Coffee Break

Agenda

Pegasus Web Xchange

• What is Pegasus Web Xchange• Overview of Payroll Self Service

Operating auto enrolment within Opera 3

• Activating & running auto enrolment at your Staging Date• NEST Integration• Communicating with your workers – Using XRL• Storing Documents – Using Document Management

Payroll End of Year 2014

Version numbers for the 2014/2015 releases

• Opera II – Version 7.30• Opera 3 – Version 2.10• Capital Gold – Version 3.97• Pegasus Online Filing Manager – 3.40

When should you apply this upgrade?

Documentation• Payinfo.pdf• Legislative Changes• Product Changes• Checklist

Changes prior to 2013/14 EOY

Options for printing P60’s

• Currently


Options for printing P60’s

• Post upgrade


HMRC Stationery Order Line

• Ordering P60’s


Internet Service for PAYE – P14’s

• Now part of the Full Payment Submission• Removed from the Opera & OFM menu structures

Prepare Internet P35 • Now part of the final Employers Payment Summary• Removed from the Opera & OFM menu structures

P45 & P46 • Now part of the Full Payment Submission• Removed from the Opera & OFM menu structures


Changes to Real Time Information

• Name Validation• Leave Date Validation• Leavers with Zero Pay• Period of Inactivity Start Date

Changes to Direct Earnings Attachment Orders • Pilot DEA Orders were introduced in April 2013• These are now fully introduced & available


Changes to Auto Enrolment

• Technical changes to Pay Reference Period• Registration with the Pensions Regulator• Auto Enrolment Joining Window

End of Year Procedures

Backup Opera II / Opera 3

Upgrade to Opera II – v7.30 / Opera 3 – v2.10

Upgrade Online Filing Manager – v3.40

Complete your normal Payroll processing EXCLUDING the final Update

• Calculation• Payroll Summary Reports / To-Date Summary Reports• P32 Processing ensuring funding & payments are correct

Run UDS


EOY / Special Reports

• P60 End of Year Returns• Print P35 Substitute• Pay / Ded List


Is the Payroll linked to the Nominal Ledger?

• Run the N/L Analysis command

Is the Payroll linked to the Cashbook? • Run the Cashbook Transfer command

Are the employees paid by BACS? • Run the Payment Reports / Produce & List BACS command


RTI Submissions – Full Payment Submission

• Create & send the final FPS for 2013/2014• Check Service Availability


RTI Submissions – Service Availability

• www.customs.hmrc.gov.uk/maint/


RTI Submissions – Full Payment Submission

• Create & send the final FPS for 2013/2014• Check Service Availability

RTI Submissions – Employer Payment Summary • Create & send the final EPS for 2013/2014

Payroll Update • Run the Update routine for the final Pay Period

End of Year Cleardown


Final Checks

• Utilities / Set Options – Current Tax Year• Utilities / Calendar – Current Tax Year• Utilities / PAYE/NI/Stat.Payments• Utilities / Set Options – Small Employers Relief• Processing – Employee Tax Codes

Earlier Year Update

Changes for Tax Year 2014/2015

Income Tax Bandwidths

2013/14 2014/15

Basic Rate – 20% £0 - £32,010 £0 - £31,865

Higher Rate – 40% £32,011 - £150,000 £31,866 - £150,000

Additional Rate – 45% £150,000+ £150,000+


Income Tax Personal Allowances

2013/14 2014/15

Under 65 £9,440 £10,000

Aged 65-74 £10,500 £10,500

Aged 75 and over £10,660 £10,660


Changes in Tax Codes

2013/14 2014/15

Uplift “L” Tax Code 944L 1000L

Emergency Tax Code 944L 1000L


National Insurance Bandwidths – Weekly

2013/14 2014/15

Lower Earnings Limit £109 £111

Secondary Threshold £148 £153

Primary Threshold £149 £153

Upper Accrual Point £770 £770

Upper Earnings Limit £797 £805


National Insurance Bandwidths – Monthly

2013/14 2014/15

Lower Earnings Limit £473 £481

Secondary Threshold £641 £663

Primary Threshold £646 £663

Upper Accrual Point £3,337 £3,337

Upper Earnings Limit £3,454 £3,489


National Insurance Contributions – Employee (Primary)

Earnings per week NIC Rate %

Below £111 (LEL) 0

£111 to £153 (PT) 0

£153 to £770 (UAP) 12

£770 to £805 (UEL) 12

Above £805 (UAP) 2


National Insurance Contributions – Employee D NI Code


Below £111 (LEL) 0

£111 to £153 (PT) 0

£153 to £770 (UAP) 10.6

£770 to £805 (UEL) 12

Above £805 (UAP) 2


National Insurance Contributions – Employer (Secondary)


Below £153 (ST) 0

Above £153 13.8


National Insurance Contributions – Employer D NI Code


Below £111 (LEL) 0

£111 to £153 (ST) 0

£153 to £770 (UAP) 10.4

£770 to £805 (UEL) 13.8

Above £805 13.8


National Insurance Contributions – Employee (Primary)


National Insurance Contributions – Employer (Secondary)


Statutory Payment Rates (SSP/SMP/SAP/OSPP/ASPP)

Weekly Rate2013/14

Weekly Rate2014/15

Statutory Sick Pay £86.70 £87.55

Statutory Maternity Pay £136.78 £138.18

Statutory Adoption Pay £136.78 £138.18

Ordinary Statutory Paternity Pay

£136.78 £138.18

Additional Statutory Paternity Pay

£136.78 £138.18


Student Loan Threshold

2013/14 2014/15

Threshold £16,365 £16,910


Pensions Auto Enrolment

2013/14 2014/15

Auto Enrolment Threshold

£9,440 £10,000

Qualifying Earnings – Lower Threshold

£5,668 £5,772

Qualifying Earnings – Upper Threshold

£41,450 £41,865


New Attachment Order – Direct Earnings Attachment (DEA)

• Pilot project started in April 2013• These new DEA orders do not replace any existing orders• These DEA orders do not need to be agreed in civil court• DWP sends notice to Employer with Payment Schedule• Deductions are normally based on a table of rates• Deductions can also be based on a fixed amount



Net Earnings (Weekly) %

< £100 0

£100 to £160 3

£160 to £220 5

£220 to £270 7

£270 to £375 11

£375 to £520 15

> £520 20



Net Earnings (Monthly) %

< £430 0

£430 to £690 3

£690 to £950 5

£950 to £1,160 7

£1,160 to £1,615 11

£1,615 to £2,240 15

> £2,240 20


Bank Account Details


Employment Allowance (Employers NI)


SSP Recovery Percentage Threshold Scheme Abolished


Normal Hours Worked

2013/14 Tax Year 2014/15 Tax Year

A Up to 15.99 hours Up to 15.99 hours

B 16 – 29.99 hours 16 – 23.99 hours

C 30 – hours or more 24 – 29.99 hours

D Other 30 – hours or more

E Other


Late PAYE Reporting Reason / on FPS


Late PAYE Reporting Reason / on Employees Details & Bank


Technical Changes to Auto Enrolment Legislation

• Align Pay Reference Period (PRP) with the Tax Period



• Align PRP with the Tax Period• Registration with the Pensions Regulator• Joining Window


SCON Numbers for COSR Pension Schemes

• Scheme Contracted-Out Numbers will be Mandatory• These are included in the FPS• HMRC will notify Employers where the SCON is missing• The Calculation Audit Report details missing SCON

FT Tax Codes Abolished

Setting up for 2014/15 Tax Year

Take a Backup

Update PAYE / NI / Stat. Payments Table

• From UDS• From Copy Statutory Rates• Check this data is correct

Final Checks

• Small Employers Relief• Check Employee Details

What is coming down the line

April 2015 • Shared Parental Leave• Auto Enrolment / Re-enrolment• Young Persons NI

April 2016 • Contracting out of the State Pension will be abolished• Additional Student Loan Threshold Introduced• Scottish Taxation• State Pension Age

Beyond April 2016 • OFM / ID Assurance

Pegasus Software


Pegasus Software

Workplace Pensions Reform

Samantha GarrettProduct Specialist

Agenda


Operating auto enrolment within Opera 3

• Activating & running auto enrolment at your Staging Date• NEST Integration• Communicating with your workers – Using XRL• Storing Documents – Using Document Management

Coffee Break

Auto Enrolment


• New Pensions law started in October 2012• Employers will have to auto enrol workers into Pensions• Pay into that Pension Scheme• Inform their workers about auto enrolment

Auto Enrolment

Why are the Pension Regulators doing this?

• Encourage private pension saving• People living longer• Many not saving enough• Over 50% of adults have no Private Pension savings• Provide another source of Income when retired• State Pension is only £110.15 a week for a single person• Employers to enrol worker automatically to help people save• Estimated 8 million worker will be auto enrolled• An individual can opt out if required

Auto Enrolment

How will this be implemented?

1. Nominate a contact2. Know your staging date3. Assess your workforce4. Review your pension arrangements5. Communicate the changes to all your workers6. Automatically enrol your 'eligible jobholders'7. Register with The Pensions Regulator and keep

records8. Contribute to your workers' pensions

Nominate a point of contact


Log into the Pensions Regulators Website

www.TPR.gov.uk/autoenrol-nominate

Know your staging date

Knowing the staging date?

The date when the new law is ‘switched on’ for employers is known as the ‘staging date’. The staging date for employers varies according to the number of employees they employ.


Knowing the staging date?

www.ThePensionsRegulator.gov.uk

www.TPR.gov.uk

http://www.thepensionsregulator.gov.uk/

http://www.tpr.gov.uk/

Assess your workforce

What do you mean by assessing your workforce?

You need to assess the category a worker falls into

So how can they be categorised?

• 3 Category• Eligible job holder• Non-eligible job holder• Entitled worker

• 2 Thresholds • Auto enrolment threshold (£9,440)• Qualifying earnings lower threshold (£5,668)

The different types of workers

Workers

• Aged 16-74 • Earning below £5,668Have a right to join

Jobholders

• Aged 22-SPA • Earning above £9,440Must be automatically enrolled

• Aged 16-74 • Earning above £5,668 but below £9,440 OR • Aged 16-21 or SPA-74 • Earning above £9,440 Have a right to opt in

Eligible jobholders Non-eligible jobholders Entitled workers

State Pension Age

Remember, the State Pension Age is changing

Age Men Women

65 Current Apr 2016 / Nov 201866 October 202067 2026 / 202868 2044 / 2046

Review your pension arrangements

What do we need to do in order to review our pension arrangements?

• Select Qualifying Pension Scheme• Auto enrolment criteria• Qualifying criteria• Minimum requirements


Minimum requirements - Contribution levels

Qualifying earnings (£5,668 – £41,450)

Certification

Band Employer TotalQualifying Earnings 3% 8%

Band Employer Employee TotalTier 1 : < 85% of Pensionable Pay 4% 5% 9%Tier 2 : => 85% of Pensionable Pay 3% 5% 8%Tier 3: Total Earnings 3% 4% 7%


Phased Introduction

Qualifying earnings (£5,668 – £41,450)Duration Employer Contribution Total ContributionStaging Date – 30/09/2017 1% 2%01/10/2017 – 30/09/2018 2% 5%1st October 2018 Onwards 3% 8%


Phased Introduction – Certification

Tier 1

Tier 2

Tier 3

Duration Employer Contribution Total ContributionStaging Date – 30/09/2017 2% 3%01/10/2017 – 30/09/2018 3% 6%1st October 2018 Onwards 4% 9%




What if I have an existing pension scheme?

Does that pension scheme meet the criteria for a Qualifying Scheme

Can I use my existing pension scheme to auto enrol other workers?• If confirmed as Qualifying Scheme then ‘yes’• Or select other Qualifying Schemes• Other• NEST

Communicate the changes to all your workers

What type of communications will I need to provide to my workers?

• Entitled worker• Rights to “join” a pension scheme

• Non-eligible job holder• Right to “opt-into” an auto enrolment scheme

• Eligible job holder• Information about the auto enrol process

TPR – Helpful Tools

Automatically enrol your 'eligible jobholders'

• Must enrol within the joining window• Information to pension provider• Information to eligible job holders

How do I auto enrol 'eligible jobholders'?


Pensions Regulator – www.tpr.gov.uk

DWP – www.dwp.gov.uk

NEST – www.nestpensions.org.uk


• Must enrol within the joining window• Information to pension provider• Information to eligible job holders• Activate membership to the pension scheme

• Opt out period• Eligible job holders can opt out using “opt-out notice”• Contributions made during period are returned

How do I auto enrol 'eligible jobholders'?


• Details to identify the jobholder• Employer / Jobholder Name / NINO / DoB / etc.

• What you need to know statements to the jobholder• Your employer cannot ask or force you to opt-out• If your are asked to leave contact www.tpr.gov.uk• If you change your mind you may be able to opt back in• If you change job your new employer will normally put you

back into pension saving• If you have another job, your other employer might put you

into pension saving. This notice applies only to the employer named above

Opt-out Notice

http://www.tpr.gov.uk/

Opting in and joining a pension scheme

• Non eligible jobholders• Right to opt in to the auto enrolment Pension Scheme• Opt in notice

• Entitled workers • Right to join a Pension Scheme• Joining notice

How do I handle opt ins & joining requests?

Post Auto Enrolment

• On-going responsibilities• Paying contributions• Record keeping• Manage opt-outs / opt-ins

What are my on-going responsibilities?

Postponement

• Postponement up to 3 months• Employer postpones for employees• New starters• Workers becoming eligible Job holders

Can we postpone the auto enrolment process?

Register with The Pensions Regulator

What do I have to do to register with The Pensions Regulator?

Register within 5 months of staging date• Details of employers business• Detail of qualifying schemes used• Number of eligible job holders auto

enrolledHow• On-line

Safeguards

So what safeguards are in place to protect employees?

At Job interview must not screen applicants based on “opt -out”No inducements

- Extend or renew a contract - Offer a one-of payment or a higher salary- Offer a promotion

Prohibitive activity- Withhold a promotion- Withhold a pay increase- Redundancy or dismissal

Summary

1. Know your staging date2. Assess your workforce3. Review your pension arrangements4. Communicate the changes to all your workers5. Automatically enrol your 'eligible jobholders'6. Register with The Pensions Regulator and keep

records7. Contribute to your workers' pensions

Pegasus Software

Coffee Break

Pegasus Software

Implementing Auto Enrolment in Opera 3

Implementing Auto Enrolment

Recording your Staging DatePayment Profiles


Maintenance / Payment Profile / Auto Enrolment


Activating Auto EnrolmentPayment ProfilesPension SchemesAt Your Staging DateAssessing Your WorkforceOpting OutRegistering with Pensions Regulator


Activating Auto EnrolmentPayment ProfilesPension SchemesAt Your Staging DateAssessing Your WorkforceOpting OutRegistering with Pensions RegulatorNEST IntegrationPensions Provider Payments


Origo Pension Providers

Communications to your workforce

You are required to keep your employees informed

• Letter 1 – Eligible Jobholder / No Postponement• Letter 2 – Non Eligible Jobholder / No Postponement• Letter 3 – Entitled Worker / No Postponement• Letter 4 – Workers Already in a Qualifying Pension• General Notice A – Postponement (All Workers) • General Notice B – Postponement (Ex. Pension Members)• General Notice B – Postponement (Non Eligible Workers)• General Notice B – Postponement (Entitled Workers)

Communications to your workforce

How are you identify who gets what letter?

You need to assess the category a worker falls into

How about using Pegasus XRL?

• XRL allows you to extract data from the Opera Payroll• Extraction is into Excel

• Excel allows you to mail merge with Word • Download the letter templates for TPR / NEST

Pegasus XRL – Winning BI Tool

Pegasus Software

Pegasus Web Xchange in Opera 3

Opera 3 – Pegasus Web Xchange

Pegasus Web Xchange – Overview

Opera 3Database

PWXDatabase +

Data “synced” viaCommunication

Framework

Opera 3 WebsiteCommunication

Framework

Subset of Opera 3 data

PWX specific data

pegasus software payroll end of year 2014. pegasus software payroll end of year 2014 samantha...

Documents

eoy changes

date changes

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available slide

agenda changes

legislation changes

tax year

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