Pegasus
Software
Payroll End Of Year 2014
Pegasus
Software
Payroll End Of Year 2014
Samantha Garrett
Product 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
Operating auto enrolment within Opera 3
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Activating & running auto enrolment at your Staging Date
NEST Integration
Communicating with your workers – Using XRL
Storing Documents – Using Document Management
Pegasus Web Xchange
• What is Pegasus Web Xchange
• Overview of Payroll Self Service
Payroll End of Year 2014
Version numbers for the 2014/2015 releases
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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
Changes prior to 2013/14 EOY
Options for printing P60’s
• Post upgrade
Changes prior to 2013/14 EOY
HMRC Stationery Order Line
• Ordering P60’s
Changes prior to 2013/14 EOY
HMRC Stationery Order Line
• Ordering P60’s
Changes prior to 2013/14 EOY
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 prior to 2013/14 EOY
Changes to Real Time Information
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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 prior to 2013/14 EOY
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
Run UDS
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
End of Year Procedures
EOY / Special Reports
• P60 End of Year Returns
• Print P35 Substitute
• Pay / Ded List
End of Year Procedures
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
End of Year Procedures
RTI Submissions – Full Payment Submission
• Create & send the final FPS for 2013/2014
• Check Service Availability
End of Year Procedures
RTI Submissions – Service Availability
• www.customs.hmrc.gov.uk/maint/
End of Year Procedures
RTI Submissions – Service Availability
• www.customs.hmrc.gov.uk/maint/
End of Year Procedures
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
End of Year Procedures
Final Checks
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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
Basic Rate – 20%
Higher Rate – 40%
Additional Rate – 45%
2013/14
2014/15
£0 - £32,010
£0 - £31,865
£32,011 - £150,000
£31,866 - £150,000
£150,000+
£150,000+
Changes for Tax Year 2014/2015
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 for Tax Year 2014/2015
Changes in Tax Codes
2013/14
2014/15
Uplift “L” Tax Code
944L
1000L
Emergency Tax Code
944L
1000L
Changes for Tax Year 2014/2015
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
Changes for Tax Year 2014/2015
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
Changes for Tax Year 2014/2015
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
Changes for Tax Year 2014/2015
National Insurance Contributions – Employee D NI Code
Earnings per week
NIC Rate %
Below £111 (LEL)
0
£111 to £153 (PT)
0
£153 to £770 (UAP)
10.6
£770 to £805 (UEL)
12
Above £805 (UAP)
2
Changes for Tax Year 2014/2015
National Insurance Contributions – Employer (Secondary)
Earnings per week
Below £153 (ST)
Above £153
NIC Rate %
0
13.8
Changes for Tax Year 2014/2015
National Insurance Contributions – Employer D NI Code
Earnings per week
NIC Rate %
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
Changes for Tax Year 2014/2015
National Insurance Contributions – Employee (Primary)
Changes for Tax Year 2014/2015
National Insurance Contributions – Employer (Secondary)
Changes for Tax Year 2014/2015
Statutory Payment Rates (SSP/SMP/SAP/OSPP/ASPP)
Weekly Rate
2013/14
Weekly Rate
2014/15
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
Changes for Tax Year 2014/2015
Student Loan Threshold
Threshold
2013/14
2014/15
£16,365
£16,910
Changes for Tax Year 2014/2015
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
Changes for Tax Year 2014/2015
New Attachment Order – Direct Earnings Attachment (DEA)
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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
Changes for Tax Year 2014/2015
New Attachment Order – Direct Earnings Attachment (DEA)
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
Changes for Tax Year 2014/2015
New Attachment Order – Direct Earnings Attachment (DEA)
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
Changes for Tax Year 2014/2015
Bank Account Details
Changes for Tax Year 2014/2015
Employment Allowance (Employers NI)
Changes for Tax Year 2014/2015
Employment Allowance (Employers NI)
Changes for Tax Year 2014/2015
Employment Allowance (Employers NI)
Changes for Tax Year 2014/2015
SSP Recovery Percentage Threshold Scheme Abolished
Changes for Tax Year 2014/2015
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
Changes for Tax Year 2014/2015
Late PAYE Reporting Reason / on FPS
Changes for Tax Year 2014/2015
Late PAYE Reporting Reason / on Employees Details & Bank
Changes for Tax Year 2014/2015
Technical Changes to Auto Enrolment Legislation
• Align Pay Reference Period (PRP) with the Tax Period
Changes for Tax Year 2014/2015
Technical Changes to Auto Enrolment Legislation
Changes for Tax Year 2014/2015
Technical Changes to Auto Enrolment Legislation
• Align PRP with the Tax Period
• Registration with the Pensions Regulator
• Joining Window
Changes for Tax Year 2014/2015
SCON Numbers for COSR Pension Schemes
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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
Payroll End Of Year 2014
Pegasus
Software
Workplace Pensions
Reform
Samantha Garrett
Product Specialist
Agenda
What is auto enrolment?
Coffee Break
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
Auto Enrolment
What is auto enrolment?
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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?
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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.
2.
3.
4.
5.
6.
7.
8.
Nominate a contact
Know your staging date
Assess your workforce
Review your pension arrangements
Communicate the changes to all your workers
Automatically enrol your 'eligible jobholders'
Register with The Pensions Regulator and keep
records
Contribute to your workers' pensions
Nominate a point of contact
Nominate a point of contact
Log into the Pensions Regulators Website
www.TPR.gov.uk/autoenrol-nominate
Nominate a point of contact
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.
Know your staging date
Know your staging date
Know your staging date
Knowing the staging date?
www.ThePensionsRegulator.gov.uk
www.TPR.gov.uk
Know your staging date
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
Jobholders
Entitled workers
• Aged 16-74
• Earning below £5,668
Have a right to join
Eligible jobholders
• Aged 22-SPA
• Earning above £9,440
Must be automatically
enrolled
Non-eligible jobholders
• 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
State Pension Age
Remember, the State Pension Age is changing
Age
Men
65
66
67
68
Current
Women
Apr 2016 / Nov 2018
October 2020
2026 / 2028
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
Review your pension arrangements
Minimum requirements - Contribution levels
Qualifying earnings (£5,668 – £41,450)
Band
Qualifying Earnings
Employer
3%
Total
8%
Certification
Band
Tier 1 :
Tier 2 :
Tier 3:
< 85% of Pensionable Pay
=> 85% of Pensionable Pay
Total Earnings
Employer
4%
3%
3%
Employee
5%
5%
4%
Total
9%
8%
7%
Review your pension arrangements
Phased Introduction
Qualifying earnings (£5,668 – £41,450)
Duration
Staging Date – 30/09/2017
01/10/2017 – 30/09/2018
1st October 2018 Onwards
Employer Contribution
1%
2%
3%
Total Contribution
2%
5%
8%
Review your pension arrangements
Phased Introduction – Certification
Tier 1
Tier 2
Tier 3
Duration
Staging Date – 30/09/2017
01/10/2017 – 30/09/2018
1st October 2018 Onwards
Employer Contribution
2%
3%
4%
Total Contribution
3%
6%
9%
Duration
Staging Date – 30/09/2017
01/10/2017 – 30/09/2018
1st October 2018 Onwards
Employer Contribution
1%
2%
3%
Total Contribution
2%
5%
8%
Duration
Staging Date – 30/09/2017
01/10/2017 – 30/09/2018
1st October 2018 Onwards
Employer Contribution
1%
2%
3%
Total Contribution
2%
5%
7%
Review your pension arrangements
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
TPR – Helpful Tools
TPR – Helpful Tools
TPR – Helpful Tools
TPR – Helpful Tools
TPR – Helpful Tools
TPR – Helpful Tools
TPR – Helpful Tools
TPR – Helpful Tools
Automatically enrol your 'eligible
jobholders'
How do I auto enrol 'eligible jobholders'?
• Must enrol within the joining window
• Information to pension provider
• Information to eligible job holders
Automatically enrol your 'eligible
jobholders'
Pensions Regulator – www.tpr.gov.uk
NEST – www.nestpensions.org.uk
DWP – www.dwp.gov.uk
Automatically enrol your 'eligible
jobholders'
How do I auto enrol 'eligible jobholders'?
• 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
Automatically enrol your 'eligible
jobholders'
Opt-out Notice
• Details to identify the jobholder
• Employer / Jobholder Name / NINO / DoB / etc.
• What you need to know statements to the jobholder
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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
Opting in and joining a pension
scheme
How do I handle opt ins & joining requests?
• 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
Post Auto Enrolment
What are my on-going responsibilities?
• On-going responsibilities
• Paying contributions
• Record keeping
• Manage opt-outs / opt-ins
Postponement
Can we postpone the auto enrolment process?
• Postponement up to 3 months
• Employer postpones for employees
• New starters
• Workers becoming eligible Job holders
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 enrolled
How
• On-line
Register with The Pensions
Regulator
Register with The Pensions
Regulator
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.
2.
3.
4.
5.
6.
7.
Know your staging date
Assess your workforce
Review your pension arrangements
Communicate the changes to all your workers
Automatically enrol your 'eligible jobholders'
Register with The Pensions Regulator and keep
records
Contribute to your workers' pensions
Pegasus
Software
Coffee Break
Pegasus
Software
Implementing Auto
Enrolment in Opera 3
Implementing Auto Enrolment
Recording your Staging Date
Payment Profiles
Implementing Auto Enrolment
Maintenance / Payment Profile / Auto Enrolment
Implementing Auto Enrolment
Activating Auto Enrolment
Payment Profiles
Pension Schemes
At Your Staging Date
Assessing Your Workforce
Opting Out
Registering with Pensions Regulator
Register with The Pensions
Regulator
Implementing Auto Enrolment
Activating Auto Enrolment
Payment Profiles
Pension Schemes
At Your Staging Date
Assessing Your Workforce
Opting Out
Registering with Pensions Regulator
NEST Integration
Pensions Provider Payments
Implementing Auto Enrolment
Origo Pension Providers
Communications to your workforce
You are required to keep your employees informed
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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 3
Database
Opera 3
PWX
Database
Data “synced” via
Communication
Framework
Communication
Framework
Website
Subset of Opera 3 data
+
PWX specific data