InTime/InPay configuration & process for IR35

RSM InTime/InPay with front end integration - If you have front end integration in place, IR35 workers will be imported as per your current Limited Company contractor import mappings. If you intend to add a flag to your front end system to indicate whether a worker is ‘off-payroll’ please contact the Support team to discuss import changes required.

If you use RSM InTime with InPay integration, you will need to need to set up an IR35 payroll to process off-payroll workers and process timesheets slightly differently through InTime.

Creating an IR35 payroll in InPay

1.      Go to InPay > Payrolls. Click ‘New’

2.      Enter Payroll Number as ‘IR35’ and Payroll Name as ‘IR35 Payroll’. Select pay frequency as monthly or weekly depending on needs.

3.      Click Save.

4.      Go to InPay > Payrolls and search for the IR35 Payroll created.

5.      Select ‘Generate Periods’

6.      Once complete the new payroll will poll overnight into RSM InTime so it is available to select under the payrolls dropdown against worker profiles.

Creating an IR35 worker profile in InTime

Create the worker profile in RSM InTime as normal under Profiles > Workers. Once the new worker profile is complete, please follow the below steps to enable IR35:

1.      Ensure the following fields on the Worker profile are populated; Payment Method, Name (including Title), Email, Gender, Date of Birth, Date of Joining, NI Number, NI Table Letter

2.      Main tab > Worker Type should be set to LTD. Tick the ‘Pay through InPay’ check box. Select ‘Z’ as engagement type and select the IR35 Payroll from the payroll dropdown. The worker must not be linked to an Umbrella/Provider.

3.      Employment Details > Holiday should be set to 0% under standard accrual rate field. If left blank, the agency default rate will be applied.

4.      Limited Company tab > tick the ‘Self Billing’ check box and ensure the Limited Company information is populated.

5.      Advanced tab > ensure allocation of items to invoice is set to ‘Everything goes on one invoice’.

6.      Save the worker profile. This should synchronise with InPay and result in the InPay ID field on the worker profile being populated with a number.

Any errors/issues with the synchronisation to InPay will be highlighted by the notification bell icon.

Creating IR35 Placement

Create the placement profile in RSM InTime as normal under Profiles > Placements. Once the new placement profile is complete, go to Advanced Tab and tick the ‘Deduct PAYE and NIC from Ltd Company on this placement’ check box.

Please note: If enabling IR35 against a worker which already exists within RSM InTime with an active placement, you will need to create a new placement profile for IR35 as use this going forward. 

Processing IR35 Timesheets to InPay

The normal process of creating and approving timesheets will apply as per your own requirements and business process. 

1.      Once the timesheets have been approved go to Timesheets > Export.

2.      Any timesheets selected will be exported into the current pay period within InPay for the IR35 Payroll.

3.      Any error/issues will be highlighted by the notification bell icon.

Running and Committing IR35 Payroll in InPay

Running the IR35 payroll follows the standard PAYE processing with relation to updating employee details, reporting and RTI submissions, Accounts Journal Export and P32 BACS. Do not create a BACS in InPay for the IR35 payroll.

Please note: The worker(s) must be paid immediately once the payroll has been committed and the FPS file has been submitted to HMRC. Once the IR35 Payroll processing has begun, it MUST be completed in full.

1.      Commit the IR35 payroll. Go to Payroll > Payroll Processing > search for the IR35 payroll and select Commit.

2.      When submitting the RTI file for the IR35 to HMRC, the BACS file can be blank. The EPS would be run as usual once per month and include all employees.

Processing payments in InTime

Synchronise the payslips to InTime. Go to System Configuration > InPay Settings > Synchronise Payslips.

Select IR35 payroll and the previous period from the period dropdown. Select Synchronise. This will synchronise the tax and NI deductions made in InPay to the exported timesheets in InTime. The results of the synchronisation will be shown on the same screen.

Once the payslip synchronisation is complete, the pay invoices can be generated under Pay > Generate Invoices.  Below is an example of how the deductions are shown on the contractor invoice:

After pay invoices have been generated (and sent if required), the payment batch/file can be created under Pay > Generate Payments.

Whilst this does not affect determination of IR35, if you do not wish to show hours or units on your pay invoices for IR35 contractors (as above) these can be removed. Please contact the Support team to amend the invoice layout.