Payroll Processing - MT Services Limted Manuals/Opera 3 Training... · 23/03/2016 2 Payroll...

2016

Payroll Processing

TRAINING MANUAL

MT SERVICES

MTS Training Manual

23/03/2016 1 Payroll Processing

Table of Contents

Introduction _______________________________________________________________ 2

Payroll Processing Steps ______________________________________________________ 3

Opera 3 Menu Structure ______________________________________________________ 4

Payroll Processing ___________________________________________________________ 5

Employee Record _______________________________________________________________ 5

Employee’s Payments ____________________________________________________________ 5

Payroll Processing Actions ____________________________________________________ 6

Payments & Deductions ______________________________________________________ 7

Column Description ______________________________________________________________ 7

Calculate __________________________________________________________________ 8

Global Calculation___________________________________________________________ 8

Calculation Report_______________________________________________________________ 9

Real Time Information (RTI) ___________________________________________________ 9

Full Payment Submission (FPS) _____________________________________________________ 9

FPS Processing __________________________________________________________________ 9

Employer Payment Summary (EPS) ________________________________________________ 10

EPS Processing _________________________________________________________________ 10

BACS Submission ___________________________________________________________ 10

C/B Transfer & N/L Analysis __________________________________________________ 10

N/L Analysis ___________________________________________________________________ 10

C/B Transfer __________________________________________________________________ 10

Update ___________________________________________________________________ 11

Updating the current period ______________________________________________________ 11

Check Pay Period___________________________________________________________ 11

P32 Processing ____________________________________________________________ 12

Payments _____________________________________________________________________ 12

Funding ______________________________________________________________________ 12

Employment Allowance _________________________________________________________ 12

MTS Training Manual


Introduction

The Payroll module forms part of the HR solution from Pegasus and is specifically designed for employees of

your company and is for use with PAYE & NI. The system allows you to process the wages for the current

period and once this period has been updated it forms part of the history and can never be changed.

The list below highlights the key features of this module:

Calculation of Income Tax and National Insurance Contributions

Calculation of employee payments (including salary sacrifice) and deductions

Maintenance and calculation of pensions including National Employment Savings Trust (NEST)

pensions and other auto enrolment pensions. NEST is a 'low-cost and easy-to-use' pension scheme

that’s available for any employer to meet their pension’s auto enrolment duties. Refer to

www.nestpensions.org.uk for details.

Maintenance and calculation of pensions including auto enrolment pensions

Maintenance and calculation of Attachment Orders

Maintenance and calculation of statutory payments:

o Statutory Sick Pay

o Statutory Maternity Pay

o Ordinary Statutory Paternity Pay for both births and adoptions

o Additional Statutory Paternity Pay for both births and adoptions.

Trade Dispute Tax Refund withheld

Retrospective adjustments to National Insurance Contributions

Full P32 Processing

Online submission of returns to HRMC (P45, P46, P46 (Expat), P46 (Pen), P14 (End of Year

Summaries) and P35 (Employer Annual Return).

Online submission of Real Time Information submissions to HMRC.

Online payslips and P60 (End of Year Certificates).

MTS Training Manual


Payroll Processing Steps

1 Check Payroll Period An import step to ensure you are processing in the correct Period. (Utilities Calendar)

2 Payroll Processing This step requires that you add all new employees, ensuring all records are up to date and processing leavers. Also ensuring that the correct payments to these employees are entered. (Processing)

3 Global Calculation This step runs the calculation on all employees and prints any exceptions/warnings for these employees (Global Calculation)

4 Auto Enrolment Update The above report will inform you of any employees that need postponing or enrolling into workplace pension. This If any employees have been enrolled then step 3 will need re running. (Global Changes Auto Enrolment updates)

5 Print Summary Reports & Payslips

This step prints all required reports for the period (Summary Reports T/P, T/D & Payment Reports Payslips, Produce & List BACS)

6 FPS & EPS (RTI) Transmit the RTI Full Payment Submission & Employer Payment Summary)

7 BACS Submission This step will call your BACS software and if successfully transmitted, delete this periods BACS file

8 Process Pension Contributions

This step will create the pension contribution files. (Pension Reports Contribution File)

9 N/L Analysis & C/B Transfer

These steps will update the N/L and C/B with this periods payments (Utilities N/L Analysis & Cashbook Transfer)

10 Update This step updates the current period and writes the information to history. (Utilities Update)

1 Check Pay Period

2 Payroll Processing

3 Global Calculation

4 AE Update

5 Print Summary Reports& & Payslips

6 FPS & EPS (RTI)

7 BACS Submission

9 C/B Transfer & N/L Analysis

10 Update Pay Period

8 Process Pension Contributions

MTS Training Manual


Opera 3 Menu Structure

‘Processing’ is where you will undertake any changes to employee or their payment/deduction elements (see step

2).

‘Calculation’ is the routine to calculate the current period’s wages for all employees in the payroll group (see

step 3).

‘P32 Processing’ allows you view your outstanding payments to the HMRC and record new payments.

‘View’ tool allows you to analyse gross payments and deductions.

‘RTI Submissions’ allow you to communicate employees and employers payments online to the HMRC (see

step 6).

‘Summary Reports’, this section is where you print audit trails for the current period and the year to-date

including a report in the style of the P11 report (see step 5).

‘Payments Reports’, this section is where you print payslips, cheques, and BACS and Autopay listings (see step

6).

‘Periodical Reports’ in this section is where your print P45 and P46 reports, reports for Statutory Sick Pay,

Statutory Maternity Pay, Ordinary and Additional Statutory Paternity Pay, Statutory Adoption Pay and reports

for attachment orders.

‘Pension Reports’ this section is where you print details of your employees' pension schemes and create auto

enrolment pension enrolment files and contribution files to send to National Employment Savings Trust (NEST).

‘Miscellaneous Reports’ show birthdays and holidays.

‘EOY/Special Reports’ this section is where you print reports or complete activities that would typically be done

at the end of the year.

‘Global Changes’ this section is where you can run global updates in Payroll. These commands are included in

this section:

Zeroise Payment and Deduction Balances

Tax Code Changes

Payment and Deduction Changes

Pension Scheme Transfer

Auto-Enrolment Updates

‘Email Admin’ allows you to maintain employee’s email details and design\generate correspondence to these

employee’s.

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Payroll Processing

Employee Record

Employee’s Payments

MTS Training Manual


Payroll Processing Actions

Within payroll processing you will be able to undertake the following:-

Include Historical – This includes historical employee in the list.

View History – Previous period records and payslip images.

Details & Bank – Which includes their bank details and home address.

To Date – Includes previous employment figures, gross pay, TAX and NI for the current year.

Payment & Deductions – under the payments tab you can see the details for payment and on the deduction tab

you can see the deductions for this period.

Pensions – within the pensions form you can view the pensions the employee has and the amounts the employee

and company have paid in.

Attachment Orders - Use the Attachment Orders command on the Action menu associated with the Payroll

Processing form to maintain details that enable the application to calculate deductions for one or more

Attachment of Earnings Orders for the employee. You will need to set up a deduction profile for the appropriate

type of attachment of earnings order before you create a deduction. An attachment order is issued to an employer

by an authority telling them to make a deduction from an employee via the payroll. This is a legal requirement.

On each payday you must make the deduction provided the employee's earnings for the pay period are sufficient.

The use of attachment orders is favoured by the Government for the recovery of debts, fines and liabilities. There

are many different types of attachment orders, issued by different courts, agencies and authorities.

Leavers – to mark an employee as a leaver use this facility. Either lever this period (last period) or lever already

left (no more pay).

Holiday – to record that the employee has taken some holiday days in the current period (this will reduce the

amount of days remaining to the employee).

Transfer – If you have multiple payroll groups you can use this function to move an employee to another group.

Absence – If the employee has taken absence days in the period you can record them here.

Statutory Payments - How statutory payments are calculated depends on whether these options have been

selected in Payroll - Utilities - Set Options command. Before statutory payments are calculated, payment profiles

must be created for the type of statutory payment. See the Payroll - Maintenance - Payment Profile Help topic

for more information.

MTS Training Manual


Payments & Deductions Within Payments & Deductions you can define which payments and deductions are repeated for each pay period,

unless overridden. So once you have set up each employee’s payments and deductions, you only need to make

changes that are necessary on a period-by-period basis. The application automatically calculates pay on all

payments and deductions you have chosen to repeat each period. You use the Add command on the Action menu

on the Payments &

Deductions form to set

up the payments and

deductions for the

currently selected

employee. Payments are

set up on the Payments

tab and deductions on

the Deductions tab.

Column Description

Perm. Value A 'permanent' value to be repeated each pay period. Although described as 'permanent', you can

change it at any time. You can override it for a given pay period by making an entry in the Temp. Value column

or update it using the Global Changes command on the EOY/Special Reports menu. An example of use for a

permanent payment is a salary.

Temp. Value A temporary value you want to use for the current period only. You can use this to override the

value in the Perm. Value box or for occasional payments, such as one off expenses.

Units The number of hours for the rate or, in the case of SSP (Statutory Sick Pay) /SMP (Statutory Maternity

Pay) units, the number of days. If payments are made on the basis of the number of hours worked, you can enter

the number of hours each pay period. If the Retain Units option is selected on the Payment Profiles form for the

payment concerned, the units are retained and displayed as a default in the subsequent periods. For example, you

might want to retain a standard number of working hours for a basic pay element, while leaving overtime

elements open without a default. Fractions of hours are treated as either minutes or decimals according to the

selection in the Hours and Minutes option on the Options Page 2 tab of the Set Options form.

Rate The rate per unit. This only applies if you have made an entry in the Units column. Pay is calculated by

multiplying the units by the rate.

Description The name of the payment profile.

T.P. This column will display the value of ‘This Period’ of the current period once a Calculate has been run.

These figures may not be accessed.

T.D.L.P The cumulative value of all payments for the profile for the pay year to-date, as at last period. You can

change the value in this box, but this should only be done before you use the Calculation command and where

you are creating a new payroll part way through the pay year.

T.D.T.P. This column will automatically display ‘This Date This Period’ figures after a calculation is run and

may not be accessed.

Notes: Employee pay records are not updated with the payments and deductions

you define until you use the Calculation command.

MTS Training Manual


Calculate To check an employee’s total payments and deductions

in the current period use the calculate option from the

‘Action Menu’

This will show you a summary and calculate the net pay.

You don’t need to run this function but you do need to

run the Global Calculation on the main menu every

period.

Global Calculation The Global Calculation

routine is mandatory and

will need running each

period (see step 3).

Check the actual pay

date does not fall on a

weekend or bank

holiday.

This routine will print an

exceptions/calculation

report, this report will

need either printing or

spooling.

MTS Training Manual


Calculation Report

Example of Calculation Report

Real Time Information (RTI)

Information filed with the HMRC for the current period see RTI guide for further information.

Full Payment Submission (FPS)

Real Time Information submissions can only be sent in the current tax year once the Use Real Time Information

option on the Payroll - Utilities - Set Options form has been selected.

This submission includes pay details for the pay period: for example payments, Income Tax, NI, and other

deductions such as student loans. It also includes details of new starters, leavers this year and people who have

irregular payment patterns. The first FPS is also used to align your employee data with HMRC records if an EAS

is not used for that purpose. Each employee's address is also included.

HMRC will expect you to send at least one FPS per month and on the same day you pay your employee’s. You

will be informed via the 'Generic Notification Services (GNS)' - a new service for Real Time Information

messages - if an FPS is not received. The GNS is part of the Data Provisioning Service (which is used to notify

you of tax code changes, for example).

FPS Processing

Select the Full Payment Submission from the RTI Submissions and follow the wizard through without changing

any options unless you are late filing the report.

Select start and print/spool report.

Select Yes to all the prompts and OK to the confirmation.

Answer ‘Yes’ to the question about submitting now.

Follow the Online Filing Manager wizard to complete the submission.

MTS Training Manual


Employer Payment Summary (EPS)

This submission is used to reduce the charge calculated from the most recent FPS submission. It is also used to

notify HMRC if no employees are paid in a pay period meaning Income Tax, NI, and other deductions such as

student loans are not due. If this is your first EPS the year to date figures for any recovered payments for

statutory payments, CIS Deductions and NICs Holiday in the current year are also included.

The year to-date recoverable amounts displayed on page two are derived from the Payroll - P32 Processing form.

If you operate more than Payroll Company using the same Accounts Office reference, the EPS must be sent from

the consolidation P32 Company (defined in the P32 Co. Consolidation box on the Payroll - Utilities - Set

Options form).

The EPS must be submitted before payment to HMRC is due on the 19th of the following tax month.

The Wizard The Employer Payment Summary wizard is designed to enable the file for the submission to be quickly created

before it is submitted to HMRC using Pegasus Online Filing Manager.

EPS Processing

Select the Employer Payment Summary from the RTI Submissions and follow the wizard through without

changing any options unless you are late filing the report.

BACS Submission If paying your employees via BACS you will need to produce a output file from Pegasus for your BACS

software to import to ensure all employees are paid the correct value.

Select Produce & List BACS from ‘Payment Reports’, this will print/spool a report listing all employees

payments and produce a file for your BACS software to import.

In your BACS software import the file that has just been produced and check values against the report created.

C/B Transfer & N/L Analysis If you link your payroll module to your nominal ledger and/or cashbook, you can now run the routines to update

these modules.

N/L Analysis

From within Utilities select N/L Analysis and select ‘Create Transfer File and report’. Select OK and print/spool

the report.

C/B Transfer

From within Utilities select Cashbook Transfer. Select ’Update Cashbook and create NL transfer File’. Select

OK and print/spool report.

MTS Training Manual


Update

The Update routine is used for closing the current period and opening the next period. Once the period has been

closed no changes can be made to it.

Updating the current period

Before starting make sure no payroll related forms are open.

From within the utilities select ‘Update’. If you need to clear down the currently due figure for any pension

schemes, select them now (click on required pensions).

A series of prompts will now be displayed, read each one and answer the questions displayed (if you answer no

to any question the function will terminate).

The system will now update all employees’ to-date details and attach a copy of this period’s payslip to their

history.

Once completed click OK

Check Pay Period

It is imperative that you know you are processing in the current period, so I recommend that you check what

period you are currently in.

From Utilities select Calendar, this will show you the current period and if you have run the ‘Global Calculation’

this period (Actual Pay Date).

MTS Training Manual


P32 Processing

The P32 is the ‘Employer’s Payment Record’ and is used to help calculate and record how much an employer

owes the HMRC per tax month. The information is derived from the calculation of the Payroll. Based on

information derived from the calculation of the payroll, the P32 Processing form provides the means to view,

maintain and print P32 Employer Payment Record information. When you select the P32 Processing command,

the application displays the P32 form which displays the P32 records for the current tax year. For two and four-

weekly payrolls, weeks 54 and 56 are included in the week 53 line.

Figure 1

The following routines allow you to keep your P32 records upto date

Payments

Monthly HMRC payments should be recorded each month using the payments routine. Here you specify the

month you are paying along with the value, reference and date paid.

Once paid the system will update the amount owing for each month as Figure 1.

Funding

If you have applied for and received funding in respect of a TAX or statutory payment refund, you can record

this refund using this routine.

Employment Allowance

When taking your NI allowance, you can record which month or months it has been claimed in by using this

routine. It will be shown and reduce the amount needed to be paid automatically.

It is imperative that these records are maintained as this information is used in the EPS submissions.

Payroll Processing - MT Services Limted Manuals/Opera 3 Training... · 23/03/2016 2 Payroll...

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Transcript of Payroll Processing - MT Services Limted Manuals/Opera 3 Training... · 23/03/2016 2 Payroll...