Company Details

Company Tax District

Setup details required....

• District No: Changing this will change both the Employers Reference and Accounts Office Reference District No fields. (Required before RTI file can be sent)
• Employers Reference: The employers reference provided by the HMRC. (Required before RTI file can be sent)
• Accounts Office Reference (AO Ref): The Accounts Office Reference provided by the HMRC. (Required before RTI file can be sent)
• Unique Tax Reference (UTR): This field must be populated if the company has a CIS payroll.
• Default Office: At present only one Employers Reference can be set up for the company and this needs to be set as the default office.
• Unique Tax Reference (UTR): This field must be populated if the company has a CIS payroll.
• Small Business : A small employer is one whose total Class 1 NICs, including primary (employee) and secondary (employer) liability, is at or below a set annual threshold, in the qualifying tax year. The qualifying year is the last complete tax year before the first day, the Sunday of the qualifying week (or maternity week). If the business met the requirements in the last financial year this box should be ticked. An employer who qualifies for small employer’s relief can reclaim 100% of certain statutory absence payments, plus an additional 3% compensation payment.
• Small Business (Previous Year): As above but for the previous year.
• HMRC Bank Account: The HMRC account to make P32 payments to (This is required if you are to make P32 payments by tax).

Payrolls

Setup details required....

• Payroll Number: The short name or number for the payroll.
• Payroll Name: The long name for the payroll.
• Pay Frequency: The pay frequency for employees that are paid on this payroll.
• NI Calculation Method: Post 2013 InPay will always calculate with the exact method and the table method will be unavailable.
• Include Er's NI in pay: Select this option if Employer's NI is to be taken out of the employees pay. (this will normally only be Umbrella company workers)
• Include Er's Pension in pay: Select this option if Employer's Pension is to be taken out of the employees pay. (this will normally only be Umbrella company workers)
• Withhold tax refunds when no pay: Select this option if you do not want the employee to receive tax refunds when they have no pay in the period. If the employee is on a cummulative tax code, the tax will be adjusted the next time the employee receives pay.

Pay Periods

For each of the payroll identied in the information provided above we need the below details for the pay period for these payrolls....

Weekly

Monthly

Pay Elements

Below are Pay Elements that are setup in InPAY by default.

If you need any Pay Elements in addition to these we need to know these details about each element..

• Pay Element: The identifier for the pay element within the system.
• Pay Element Name: A more descriptive version of the above field for scenarios such as on screen or on payslip display.
• Nominal Code: Indicates the nominal code that the element has on your accounts system. This field will be output on any account jounals exported from the system.
• Pay Element Type: Identifies the pay element as a payment type or a deduction type or an element used for AEOs.
• Offset Against Element: Allows specification of a different Pay Element to offset payments against. The pay element specified here will be reduced by the amount being paid to this element. Only payment type pay elements can be offset.
• Qualifying Earnings: Indicates that the pay element is included in the employee's auto enrolment assessment .
• Benefit In Kind: The pay element is used to increase taxable pay without increasing actual Gross or Net Pay. In order to do this the element must be set up as a taxable payment and must be offset against a non taxable payment.
• Notional: Indicates that the pay element is not included in calculation of Gross or Net Pay.
• NI’able: Indicates if the pay element is to be considered when calculating national insurance contributions.
• Taxable: Indicates if the pay element is to be considered during tax calculations.
• Show on payslip if zero: Under normal circumstances a Pay Element will not show on a payslip if there is no pay against it in the period specified. However if this box is ticked the element will still show.

Pensions

Below are the details we need to setup a pension scheme...

• Description: The pension description that will be used for selecting the pension scheme. This will also determine the name of the pay element that will show on the payslip.
• Reference: The pension scheme reference.
• Custom Ref 1: This field is sometimes used in provider specific exports, you will be informed of whether anything is required in this field when provider specific exports are added to your system.
• Custom Ref 2: See Custom Ref 1.
• Custom Ref 3: See Custom Ref 1.
• Net Pay Scheme: This indicator tells the system the pension is taken from Net Pay rather than Gross and therefore no tax relief is gained on the contribution.
• Net of BR Tax: This indicator tells the system that the pension contribution is paid less Basic Rate tax. So for example if an employee has a 10% pension deduction on earnings of £1000, then rather than £100 being taken a figure of £80 would be taken instead (if the Basic Rate of tax was 20%).
• Basic Scheme: This indicates to the system that this scheme meets the basic requirements under auto enrolment. Deductions will be taken between the lower and upper earning thresholds as set out in legislation.
• AVC: Additional Voluntary Contribution. This allows employees to make additional contributions into the scheme. Currently this field is for reference and reporting purposes and has no effect on the deduction of contributions.
• Set Limits: For standard pension schemes deductions will be taken on all earnings (of applicable pay elements). By checking this box, the user can enter lower and upper periodic earnings thresholds, allowing percentage deductions only to be taken between these thresholds (As is the case under a basic scheme). This field is unavailable if the Basic Scheme box is ticked as these thresholds are data driven by legislation.
• Salary Sacrifice: This indicates that the pension will show on the payslip but not be included in Gross or Net pay. The user also has the option of selecting an offset element which will reduce the payment element by the equivalent amount.
• ECON Code: The Employer's Contracting-out Number. For use by Contracted-out Salary Related (COSR) schemes.
• Sort Code: The pension scheme provider sort code.
• Account Name: The pension scheme provider name of the account holder.
• Account Number: The pension scheme provider bank account number.
• Bank Name and Branch: These are read-only and are populated when a sort code is entered.
• BACS Reference: The reference for payments by BACS.
• Roll Number: Building society roll number (optional).
• Use Standard Pay: Some schemes may use the standard pay set out in the auto enrolment legislation (and selected in the Pay Element Screen). Ticking this box disables the ability to choose individual pay elements
• Pensionable Elements: Clicking this button will display 2 lists. One with all the possible pay elements that can be included in pension calculations (on the right of the screen) and the other with all the elements that have already been included. To add or remove elements from the calcuation select the relevant elements (multiple elements can be selected) and use the arrow keys move them to the appropriate list.