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A worker submits their timesheet late through the InTime timesheet application Two separate weeks’ wages for weeks ending 12June and 19 June are paid on 24 June. InPay will add a row to the screen below for the period ending 16th June (period 201611). The 2 weeks pay will be calculated separately for NI, Student Loan and Tax (because it is a wk1\mth1 code) purposes.
Figure 5 – Mistimed payments automatically created with timesheet ticked
Figure 6 – Resultant payslip
Figure 7 – RTI FPS File with 2 periods covered
Where mistimed timesheets is enabled InPay will recalculate the current period’s mistimed payments whenever a timesheet is added or deleted.
UMBRELLA WORKERS
InPay caters for the payment of workers where the worker pay’s employer’s NI, which results in a reduction to the worker’s taxable and niable pay. For example if the same timesheet was received as in Scenario 2. The following mistimed payments row would be created
Figure 7 – Mistimed timesheet (Umbrella Worker) shows that although the same input of £1000 pay for period 201611 was created, the resultant NI payments and levels are calculated on niable pay of 897.65 which is the £1000 - £102.35 Employer’s NI.
Figure 8 – Mistimed timesheet payslip (Umbrella Worker)
NI DETAILS screen
Once committed the mistimed payments row will show through the NI payments tab of the NI details screen and will be treated the same as any normal period
RESTRICTIONS
- A mistimed payment cannot be entered for a director
- A mistimed payment cannot be made where the period’s allowance has already been used (this could be from a normal payment, a mistimed payment in a previous period or due to its use in an advanced holiday period) It should be noted that a period can be used if the only payment made in that period was itself a mistimed payment.
- A mistimed payment can be made from a previous tax year, however this uses the contribution rates and limits appropriate to the year in which the payment is actually made
- The mistimed payment will be calculated against the NI letter that is applicable for the period the payment is made
- Upon changing NI letter any mistimed payments to be paid in the current period will be recalculated
- Where a mistimed payment is entered manually (rather than from a timesheet) it is the user’s responsibility to ensure that there is enough pay in the payment period to cover the mistimed payments.
- A user will be required to delete any mistimed payments in a period prior to moving an employee onto a new payroll
- When the out of step timesheets flag is ticked, InPay can only automatically allocate timesheets from InTime and pre-processed fees, into mistimed periods,. Any other payments will use the NI allowance of the period they are entered for. The result of this is that if at a later date a timesheet is received for the earlier period the allowance will already have been used and the worker will not receive the NI benefit. It is recommended therefore that all payments are sent from InTime,
- Tax, National Insurance and Student Loans cannot be overridden in periods containing a mistimed payment. If a statutory override is required the mistimed payment(s) must be deleted from the Pay -> Mistimed Payments screen