User guide for Hampshire County Council’s payroll
provision with local input via SAP
Version 1.0
16 June 2011
Document location: I:\Shared\HR\HR Service Centre\HRSC Projects\Academy Schools\2 User guide and contract\User guide Academies using SAP 2011-06-08 V1.0.doc
Table of Contents
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
Introduction .................................................................................................................................3
Service delivery ...........................................................................................................................3
Hampshire County Council contacts.....................................................................................3
Pay and Contract Support Services (PCSS) .............................................................................................................3
County Treasurer’s operations ...................................................................................................................................4
General approach .......................................................................................................................4
Authorisation....................................................................................................................................................................4
Deadlines ...........................................................................................................................................................................4
Overpayments ..................................................................................................................................................................4
Communications with Academy employees............................................................................................................4
New starters ................................................................................................................................4
Changes .........................................................................................................................................5
Amendments ....................................................................................................................................................................5
Change of bank details ...................................................................................................................................................5
Student loans ....................................................................................................................................................................5
Changing pension contribution ...................................................................................................................................5
Staff absence recording .............................................................................................................5
Family friendly – maternity, paternity and adoption...........................................................6
Additional payments...................................................................................................................6
Child care vouchers ...................................................................................................................6
Staff leaving the Academy .........................................................................................................7
Payment of salary ........................................................................................................................7
Travel and expenses...................................................................................................................7
Reporting ......................................................................................................................................8
Payroll report ...................................................................................................................................................................8
Finance postings ...............................................................................................................................................................9
Monthly payment of tax, NI payments and pensions ............................................................................................9
Hampshire Pension Fund (LGPS) ............................................................................................9
Teachers Pensions ................................................................................................................... 10
Applying pay awards and increments .................................................................................. 11
Year end..................................................................................................................................... 11
HR services ............................................................................................................................... 11
CRB and List 99 ............................................................................................................................................................ 11
Maintaining contractual documentation ................................................................................................................. 12
Updating paid weeks ................................................................................................................................................... 12
Half pay and nil pay reports ...................................................................................................................................... 12
Charges ...................................................................................................................................... 12
Annual charges .............................................................................................................................................................. 12
System developments.................................................................................................................................................. 12
Additional services ....................................................................................................................................................... 12
Academy contact details ........................................................................................................ 12
Version Control
Version
Date of Change
Change by
Brief Description
0.1
11 May 2011
CT
First Draft
0.2
13 May 2011
CT
Final Draft
0.3
20 May 2011
CT
Comments from Pensions Services
0.4
2 June 2011
CT
Final comments LT and PS
0.5
7 June 2011
CT
Comments from meeting with Hampshire Pension Fund
0.6
8 June 2011
CT
Further comments from pension fund
1.0
16 June 2011
CT
Final version
User guide for Payroll Delivery with local input on SAP
1
Introduction
Hampshire County Council is an experienced payroll provider to internal
customers based in Departments and Hampshire schools. We also provide
payroll services to external customers including foundation, academy and
religious schools, charities and other district and borough councils.
The system used for payroll is SAP; this is an integrated enterprise system and
combines payroll and personnel data in one unit. SAP is a recognised global
system and is excellent at running a range of payrolls, with robust business
continuity and data integrity. Changes in employment law and pay legislation are
implemented via regular SAP upgrades.
2

Teachers pay and conditions

Support staff based on the Green Book conditions of service

Soulbury

Joint Negotiating Committee (JNC) for Youth and Community Workers.
Draft
Hampshire County Council is experienced in payroll delivery for various terms
and conditions of employment and specialise in:
Service delivery
The service is delivered through a self service model where
master data and input directly to SAP via SAP transactions.
hold the
Local input to SAP will need to meet the published SAP deadline dates each
month to ensure that payment is made in that month. These are published on
our website http://www3.hants.gov.uk/pcss/payroll-first.htm.
3
Hampshire County Council contacts
Pay and Contract Support Services (PCSS)
PCSS will provide support with the administration, transactions and ensure pay
for employees. Contact details are:
Pay & Contract Support Services
Hampshire County Council, Hampshire House, 84-98 Southampton Road,
Eastleigh, Hampshire SO50 5PA
Tel 023 8038 3000 option 3 e-mail pcssext@hants.gov.uk
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County Treasurer’s operations
The technical aspects of the payroll system are maintained and developed
through County Treasurer’s Payroll Technical Team. Contact details are:
Payroll Technical Team, Hampshire County Council,
Elizabeth II Court South, Winchester SO23 8UB
Tel 01962 846528
e-mail payrolltech@hants.gov.uk
4
General approach
Authorisation
All starters, leavers and changes should have appropriate authorisation before
any work is processed.
will have security roles set up in SAP to ensure
correct access to transactions.
Deadlines
Deadlines for payroll running are agreed between
and Hampshire County
Council quarterly in advance and the timetable published on our customer
WebPages.
Any overpayments identified by you can have an agreed and authorised payment
plan set up for repayment via the payroll system. Repayments need to be
agreed between the employee and
. Please notify PCSS of the agreed
repayment plan so that recovery can be set up on the system for repayment. If
required PCSS will provide support in calculating the overpaid amount.
If an overpayment occurs for a leaver then you will need to invoice the employee
for the outstanding sum.
Draft
Overpayments
Communications with Academy employees
Any concerns your employees have with their pay should be addressed through
your designated, authorised staff. PCSS will not normally correspond directly
with employees of
.
5
New starters
can input new starters using PA42 SAP transaction.
As Hampshire’s payroll system links with Hampshire Pension Fund,
is not
required to send the pensions starter form for new support staff starters in LGPS.
UNISON subscriptions will need to be set up locally using a recurring deduction
as part of the hiring action.
will be responsible for payment to the
union(s) directly.
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To ensure correct tax deductions for new starters please forward the P45/P46
information to PCSS for action on the system. We will return the original
document for your records.
6
Changes
Amendments
Any changes to an employee’s pay or personal details can be input using SAP
transaction PA30 and/or PA42.
Change of bank details
Changes can be input directly to SAP using transaction PA30 with written
authorisation from the member of staff. All changes should be from the first of a
month. Please ensure staff keep their old bank account open until the first salary
payment is made to their new account.
This would normally be picked up through appropriate information on the
P45/P46 and the starter form or from the HMRC to PCSS. If you are informed of
any repayments or cessation of loans directly from the HMRC this should be sent
to PCSS for action on the payroll system.
Changing pension contribution
If an employee chooses to opt in or opt out of LGPS or TP scheme then this needs
to be notified to the pension provider and PCSS so that the National Insurance
contribution is changed on the payroll record.
7
Draft
Student loans
Staff absence recording
Any absence will need to be set up on the payroll system using PA30 transaction
and include:

Sickness

Industrial accident or disease

Leave without pay

Accident involving a third party.
An absence notification which affects an employee’s pay, entered on SAP after
the month that it applies, will have any adjustments made in the month in which
it is processed.
PCSS runs monthly reports to identify employees no longer entitled to SSP. You
can then complete the SSP1 where appropriate and forward to your employee.
The form can be found on the DWP website
http://www.dwp.gov.uk/advisers/claimforms/ssp1_print.pdf.
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8
Family friendly – maternity, paternity and adoption
Family friendly absences are set up on the payroll system centrally following
receipt in PCSS of a fully completed and authorised form to ensure appropriate
deduction of salary http://intranet.hants.gov.uk/hr/subjectguide/maternityhome/maternity-forms-2.htm
Maternity notification needs to be returned to PCSS with an authorised copy of
the MAT B1 Certificate.
There are forms available for notifying PCSS of family friendly leave requests
including:

Maternity

Paternity

Adoption.
You will need to ensure that you communicate with the individual concerned
regarding their absence.
9
Additional payments

Monthly claims for attendances and allowances (form SAP151)

Authorisation document for display screen equipment (DSE) eye
examination

Post entry repayment, education and specific skill courses, employee
statement of repayment

Payment of professional fees

Relocation expenses scheme.
Draft
Claims will be paid in the month following the work being carried out (eg
overtime) assuming they are input by the payroll cut off date of the month
following the work being undertaken. Additional payments include:
Input to SAP payroll is through CAT2 for time data or PA30 for additional
payments.
10
Child care vouchers
If required, it is the responsibility of
to arrange a childcare scheme with a
chosen provider and administer this scheme locally. You can supply an agreed
format of information to the Payroll Technical section, this will ensure a monthly
upload to the payroll and appropriate deductions made from salary.
will
need to pay the child care voucher provider directly.
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11
Staff leaving the Academy
Staff leaving your employment need to be set up on the payroll system using SAP
PA42, appropriate deductions will be made for any identified outstanding claims
or loans.
Payments identified to a member of staff after they have left
employment, and a P45 has been issued, will be treated as a payment after
leaving in line with the HMRC guidance.
Where appropriate, leavers will have a P45 produced at the end of the month
that the member of staff leaves. The P45 will be despatched to
for onward
transmission to the employee and Hampshire will file with HMRC.
The Academy will need to complete a pensions leaver ST8B form and send this to
Hampshire Pension Fund for LGPS contributors.
http://www3.hants.gov.uk/pensions/pensionsinfoforemployers/pensionsleaverf
ormnonteaching.htm
12
Payment of salary
Every effort should be made to ensure that payroll input is accurate, properly
authorised and meets the published deadlines.
staff will be paid by credit transfer on the last working day of the month.
You will have your own bank account and allow Hampshire County Council
access to send BACS payments direct from your account.
Payslips will be produced on pressure seal stationery for all employees monthly.
These will be sent via the courier to
for distribution to staff.
Draft
For staff in Teachers Pensions
will need to complete the TR8 template
(available from TP) and upload this via the STU system.
Any BACs recalls will need to be requested by you. PCSS will need to be made
aware of these so that the payroll system can be updated.
Any urgent payments will need to be raised by you. PCSS will need to be made
aware of these so that the correct recovery is set up on the payroll.
Whilst
is responsible for resolving issues relating to payment of salary,
including the management of over or under payments, PCSS can provide support
and guidance.
13
Travel and expenses
The SAP travel management module of SAP is not available through the payroll
system. Therefore the processing of travel claims will be dealt with locally by
.
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You may wish to pay travel and expenses outside of the payroll system but
should you want this paid through the payroll system you will process claims on
receipt of a fully completed and authorised claim form. The payment amount will
be calculated manually off system and entered as a wage type. Mileage and
expenses will need to come under different headings and will have their own
wage types as follows:
Wage Type Long Text
2575
Mileage-NT&No NI (recurring payment)
5065
Mileage:NT & No NI
5075
Mileage
6261
Subsist-NoTax-VAT

6263
Travel-NoTax-VAT

6265
Subsist-Tax VAT
T


6267
Travel-Tax VAT
T


6275
Subsist-NoTax NoVAT
6276
Travel-NoTax NoVAT
6277
Taxi
6278
Parking\Train
6281
Subsist-Tax NoVAT T

6282
Travel-Tax NoVAT

T
T
Tax
NI


VAT
Draft
WT
These headings will show on payslips and will be used for expenditure coding.
Due to all mileage payments which are above AMAP limits having tax and NI
applied at source, no P11D returns will be required unless there are other
benefits in kind incurred.
14
Reporting
Payroll report
PCSS will provide a monthly download to
following the payroll run to
include details of employee name, personnel number, name of employee group,
scale point, contracted hours and SIO order numbers.
Following payroll running but before the BACS file is created Payroll Technical
will provide a pay comparison report (from month 2). This will provide a
comparison of the current month’s payroll to the previous month and any
anomalies can therefore be checked, agreed or corrected.
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Finance postings
Payroll Technical will prepare a monthly spreadsheet of payroll related journals
using coding agreed by you. This will produce finance information from the
payroll, which you can post to your finance system, assuming you do no use SAP
finance.
Monthly payment of tax, NI payments and pensions
If required by
, Payroll Technical are able to provide monthly reconciliation
and direct payments to the HMRC via BACS for tax and NI payments. Payment of
monthly pensions fund money can also be via BACS to LGPS and Teachers
Pension.
If required these payments will be at an additional charge to
15
.
Hampshire Pension Fund (LGPS)
Monthly returns of payroll information will be made automatically. However,
you will be required to make any other returns necessary directly to the pension
fund administrator unless you pay an additional charge for Hampshire to provide
this service on your behalf.
Hampshire Pension Fund are the pension fund administrators in Hampshire and
require a schedule of staff who are TUPE transferring from a current Hampshire
school to
http://www3.hants.gov.uk/pensions.htm.
The Hampshire payroll solution is linked to Hampshire Pension Fund via SAP
which allows the automation of some of the processes that would be a manual
interface by
using other payroll providers. These include:

Determining the eligibility for LGPS

Allocation of the appropriate contribution band

Set up and deduction of contributions from pay

Notification to Hampshire Pension Fund of new starters.

Notification to Hampshire Pension Fund of changes to current employees
eg change in hours.
Draft
Academy schools are Scheduled Bodies; this means there is a legal requirement
to offer LGPS to current and new eligible employees. As schools are required to
be their own employer
will need to be registered with Hampshire Pension
Fund as a separate employer.
Non-teaching staff will automatically have LGPS deductions set up for all new
starters who are employed for three months or more. If a temporary member of
staff employed for less than three months has their contract extended they
should be put in the LGPS and deductions will be made. The member of staff can
elect to have their pension backdated to their start date in the role if they wish
and this needs to be communicated to PCSS to adjust the contribution date.
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You will need to continue to provide eligible staff with membership packs. If a
member of your staff does not wish to join the pension scheme then an opting
out form should be received from the staff member to the Academy, sent to
Hampshire Pension Fund and copied to PCSS for the adjustment to National
Insurance contribution rate.
You must give a member of staff in the LGPS the option of paying contributions
to cover a period of authorised unpaid leave, maternity, paternity or adoption
leave. If your employee wishes to make contributions please contact Hampshire
Pension Fund to establish the amount of employee and employer contributions
that are owed and how payment can be made.
Staff in LGPS who leave the Academy will need to have a leaver form completed
(ST8B) and sent to Hampshire Pension Fund.
Hampshire will prepare the LGPS monthly return in preparation for
to sign
off and submit to Hampshire Pension Fund. This will include costs and payments
required to the LGPS. Hampshire will also complete the year end return to LGPS
which will need to be signed and returned to Hampshire Pension Fund by
.
16
Teachers Pensions
Hampshire County Council will provide Teachers Pensions (TP) with notifications
for all teachers who are leaving the Local Authority to work in
. You should
then provide TR6 starter notifications, regardless of the fact that they have not
changed schools. Both leaver and starter notifications should be submitted using
the Secure Transfer Utility (STU) which allows you to send and receive data from
TP securely using an encrypted link.
Draft
For an additional charge Hampshire can prepare the ST8B form on your behalf
ready for final check and authorisation prior to sending to Hampshire Pension
Fund.
Staff employed on Teachers Pay and Conditions may join the Teachers Pensions
scheme. Hampshire County Council will run daily reports to highlight starters,
leavers and changes to teacher records in
. These will be checked to ensure
that the pension is applied correctly and changes will need to be reported
directly by
to Teachers’ Pensions via STU for application to the Teacher’s
pension record.
The total of employer and employee contributions must be paid to TP by 7th of
the month following the deduction. Where the 7th falls on a weekend or bank
holiday the contributions must be received by TP on the last working day
preceding either the weekend or bank holiday. Hampshire will provide monthly
information to you to enable this return.
For an additional charge Hampshire can forward your pension contributions on
your behalf, you are still required to use STU to forward a payment slip showing
the breakdown of those contributions. You must also inform TP by email at
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TPFinance@teacherspensions.co.uk that the local authority is continuing to pay
your contributions.
Details on Teachers Pensions and Academy schools is available on the TP
website:
http://www.teacherspensions.co.uk/employers/employers_academy.htm
For an additional charge Hampshire can assist with completion of the annual
TR17A return of service. These returns are sent at the end of each scheme
financial year, 31 March. The TRS17A requires a summary of contributions due
to the TP, contributions actually paid over during the course of the year and any
adjustments made to the contributions. The annual TR17A also asks for total
contributable salaries paid for the year. The annual return of service gives details
of teachers’ pensionable service gained during the year.
17
Applying pay awards and increments
18
Draft
Subject to authorisation from you to implement pay awards for staff, Payroll
Technical will update each employee’s pay, calculating and applying any arrears
owing. Also on receipt of appropriate authority Payroll Technical will apply
agreed annual increments. TLRs are normally inflated automatically as part of
applying any teachers pay award.
Year end
Payroll Technical will ensure year end returns to the HMRC.
P60s will be produced from the payroll system for all current employees and
despatched to you for distribution by 31 May each year.
Hampshire will prepare and send to HMRC, on your behalf, employer annual
return P35 and P14s .
19
HR services
In addition to payroll services Hampshire County Council can offer HR services, at
an additional charge, if you purchase a service from Education Personnel Services
some of these will be included in this contract.
Details are listed below.
CRB and List 99
Hampshire is experienced in delivering an effective and robust administration
service for CRB and List 99 checks. Depending on the nature of
contract
with Hampshire, the cost of CRB and List 99 administration can be included in the
price of the service, or as an additional, per check, charge.
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Maintaining contractual documentation
Hampshire maintains up to date and legally compliant contractual
documentation for its Authority maintained schools customer base. Depending
on the nature of the former Hampshire school’s SLA with Hampshire County
Council, these templates can be made available to you as a basis for maintaining
your own contractual documentation.
Updating paid weeks
A monthly report can be run to update service anniversaries which affect support
staff’s paid weeks.
Half pay and nil pay reports
A monthly report can be run to update you on staff whose pay may be affected
due to absence.
20
Charges
The cost of the payroll service will be based on the number of staff employed by
and charged at a per payslip cost. This will be quoted for 13 payslips per
year (12 months plus P60 production). Invoices will be sent monthly in arrears.
will be set up on a separate payroll area as your own employer and will
require a PAYE number from the HMRC. The cost of the annual return charge will
be included in the annual payroll running costs.
System developments
System development can be requested by
incur an additional charge.
via Payroll Technical and would
Draft
Annual charges
Additional services
Any additional service required outside of the SLA will be charged at an hourly
rate of £
.
21
Academy contact details
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