Payroll End of Year Guide 2014/15

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Payroll End of Year

Guide 2014/15

AccountEdge Plus

AccountEdge Plus Network Edition

Mamut Software Ltd 90 Long Acre Covent Garden London WC2E 9RZ 0800 032 5616 United Kingdom Website www.mamut.com/uk © 2015 Acclivity LLC All rights reserved.

Disclaimer

Information supplied (whether in user documentation and other literature, video or audio material, training courses, websites, advice given by staff, or provided by other means) is intended only to illustrate general principles, and may not be complete, accurate or free of error. As accounting standards, taxation requirements, legislation and the circumstances of individual businesses vary widely, this information cannot be considered authoritative and may not apply to your specific situation. You should obtain competent advice from a qualified accounting, taxation, information-technology or legal professional before acting on such information. To the extent permitted by law, Mamut Software and Acclivity LLC are not liable for any special,

consequential, direct or indirect damages arising from loss of function, profits or data resulting from your application of such information. In the event that any of the above limitations are found to be unenforceable, the company's liability is limited to the return of any fees or monies paid for the purchase of the product or service.

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Contents

Page No

1) Key Notes

3

1.1) Which Version of AccountEdge Plus to use with this guide?

3

1.2) What is the ‘Final Submission’ of the payroll year?

3

1.3) General Overview of Final Submission Tasks

3

1.4) Make your Final Submission declaration for 2014-15 on time to avoid penalties

3

2) Making your Final Submission for the year

4

2.1) Identify your final submission for the payroll year

4

2.2) If you haven’t sent your last 2014-15 Full Payment Submission by 19 April 2015

4

2.3) What if you have already sent your Final Submission earlier in 2014-15

4

2.4) Sending your Final Submission with your last 2014-15 Full Payment Submission

5

2.5) Sending your Final Submission via an Employer Payment Summary

5

2.6) Company Information and Final Submission declaration questions

6

2.7) Confirmation Email from HMRC

8

2.8) If you make a mistake with your last FPS of the year

8

2.9) Send an Employer Payment Summary for Recovery Amounts to Date by 19 April 2015

8

2.10) Print forms P60 for each employee

9

2.11) Make a post-submission Backup of your company file

10

2.12) Print reports and reconcile your liability payments made to HMRC

10

3) Start Your New Payroll Year 2016

11

3.1) Upgrade to AccountEdge Plus (or AccountEdge Plus NE) 2015

11

3.2) Start the New Payroll Year 2016

11

3.3) Load the 6 April 2015 Payroll Tax Tables

14

3.4) Update Employee Tax Codes for the New Year

15

3.5) Update Employee NI Table Letter (for under 21 year olds)

15

3.6) Automatically Check For Updates

16

3.7) Employment Allowance for 2015-16

16

Appendix A

Correcting Last Period FPS Mistakes

16

Appendix B

‘Missing Paycheques’ message when Starting New Payroll Year

17

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Please read this guide carefully. We recommend that you print this guide to make it easier to follow.

Additional HMRC year end guidance can be found at:

https://www.gov.uk/payroll-annual-reporting

1. Key Notes

1.1)

Which Version of AccountEdge Plus to use with this guide?

This guide is based on AccountEdge Plus 2015 screens and windows. Whilst AccountEdge Plus 2014 can be used with this guide, we recommend you upgrade to version 2015 as soon as it becomes available in March. There is no need to wait until after 6 April, or after you process your last 2014/15 pays before upgrading to version 2015.

If you prefer to use AccountEdge Plus 2014 with this guide, you can do so to make your Final Submission for the year and to print employee P60s. However, we strongly recommend that you upgrade to AccountEdge Plus 2015 for Section 3 – Starting the New Payroll Year.

We will email all customers as soon as AccountEdge Plus 2015 is available for download. If you have not received an email by late March, check back on the FAQ's support page for details about how to upgrade.

 6th April 2015 Tax Tables are included in AccountEdge Plus 2015 products only.

1.2)

What is the ‘Final Submission’ of the payroll year?

The Final Submission is a standard Full Payment Submission (FPS) or Employer Payment Summary (EPS) which includes some simple end-of-year declaration questions.

1.3)

General Overview of Final Submission Tasks

Listed below is a general overview of the things you’ll do at payroll year end. A full description of each step is provided in this guide.

What you will need to do When

Send your Final Submission with your last Full Payment Submission (FPS) to HMRC By 5 April *

Upgrade to AccountEdge Plus 2015 From 6 April **

Update employee payroll information for the coming year From 6 April

Send your Final Submission via an Employer Payment Summary (EPS) to HMRC - if required By 19 April ***

* The HMRC online gateway will close on 19 April for year 2014/15 FPS corrections.

** See 1.1 above for more information.

*** You only need to send your Final Submission declaration via an Employer Payment Summary (EPS) if: o you forgot to send your Final Submission declaration with your last FPS for the year.

o HMRC informs you that they didn’t receive your Final Submission declaration with your last FPS. o you didn't pay anyone in the final period of the tax year.

o you sent your last FPS early and you didn't subsequently pay anyone for one or more full tax months.

1.4)

Make your Final Submission declaration for 2014-15 on time to avoid penalties

The tax year ends 5 April 2015 so, for most employers, their Final Submission declaration should be sent on or before 5 April with their last Full Payment Submission of the year. However, don’t worry if you have already sent your last FPS of the year without marking it as the Final Submission, you can instead send your declaration very simply via an Employer Payment Summary.

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2) Making your Final Submission for the year

2.1)

Identify your Final Submission for the payroll year

 The tax year ends 5 April 2015 so, for most employers, their Final Submission declaration should be sent on or before 5 April via their last Full Payment Submission (FPS) for the year.

 If you pay employees with different frequencies (e.g. some weekly and others monthly), your Final Submission should be sent via the FPS for whichever is the last of your payrolls to be processed.

Use the flowchart below to help you identify your Final Submission for the year:

Sending the Final Submission if you forgot to send it with the last FPS of the year

If you realise that you sent your last Full Payment Submission of the year without marking it as the Final Submission, you can instead send your Final Submission declaration very simply via an Employer Payment Summary (EPS) after all your FPS have been sent.

See Section 2.5 to send your Final Submission declaration via an Employer Payment Summary.

2.2)

If you haven’t sent your last 2014-15 Full Payment Submission by 19 April 2015

The HMRC online gateway closes for 2014/15 Full Payment Submissions on 19 April 2015. If you still need to send your last period’s FPS figures to HMRC after this date, you are now late. Click here for further information.

2.3)

What if you have already sent a Final Submission earlier in 2014-15?

If you previously submitted a Final Submission declaration for the tax year in an earlier month (for example, where the business ceased trading), you still need to send an Employer Payment Summary (EPS) to indicate that you didn't subsequently pay anyone for 1 or more full tax months.

For example, if you indicated on month 10’s FPS that it was your Final Submission for the tax year, you must still:

 Send HMRC an EPS by 19 April 2015

 Use the EPS 'Earlier Period of Inactivity' fields to show that no PAYE activity took place in months 11 and 12. There is no need to re-select the Final Submission option on this EPS, since you already provided it earlier in the year.

Do you need to pay any employees in the final month of the tax year? (6 March 2015 - 5 April 2015)

Send your Final Submission declaration via an Employer Payment Summary (EPS) by 19 April.

This submission should indicate an Earlier Period of Inactivity for the relevant period(s).

See Section 2.5 to send your Final Submission via an EPS.

Send your Final Submission declaration with your last Full Payment Submission (FPS) by 5 April, or by 19 April if correcting an error.

If you process multiple pay frequencies for the company (e.g. Weekly & Monthly), send the Final Submission via the FPS for the last of the payrolls to be processed.

See Section 2.4 to send your Final Submission with your last FPS.

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2.4)

Sending your Final Submission with your last 2014-15 Full Payment Submission

Process the final payroll as normal and move onto the Full Payment Submission window.

If this is to be the last FPS for the year and no other FPS remain to be sent, select the Final Submission option to additionally send your end of year declarations.

Acknowledge the confirmation message, click Next and go to step 2.6, below.

2.5)

Sending your Final Submission via an Employer Payment Summary

Ensure that you have already successfully submitted all your 2014-15 Full Payment Submissions for this company and that no others remain to be sent. The only exception to this is where you missed the 19 April deadline for sending last period’s Full Payment Submission to HMRC.

From the Payroll main menu, select Employer Payment Summary.

Select the Submit Recovery Amounts to Date option if you have recoverable amounts to claim in the year in respect of SMP, OSPP, SAP, ASPP or CIS Deductions Suffered.

Select the Final Submission option to send your end of year declarations with this submission.

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2.6)

Company Information and Final Submission declaration questions

The Enter Company Information window will appear.

Complete the required information. Click Next to continue… Complete the Final Submission: Part 1.

Note: Examples are shown below. If you need help with your declaration, visit HMRC by clicking here.

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Click Next to continue to the Print Report window.

In the Print Report window you will be able to review and print your FPS or EPS values as appropriate.

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Enter your Government Gateway User ID and Password.

Submit a test version of your data

If you wish, you can submit a test version of your data. Test submissions can be used to test the validity of your data prior to sending your actual submission. Test submissions do not update any information in HMRC’s records. You can send test submissions as often as you wish.

When you’re satisfied that you want to make your actual submission, untick the test submission option and click Submit.

Upon successful submission of your FPS or EPS, a Submission has been successful message will appear. Click OK to close the message.

Congratulations! You have completed submitting your final submission for payroll tax year 2014-15.

2.7)

Confirmation Email from HMRC

Separately but not necessarily immediately, you should receive an email from HMRC confirming the receipt of your submission. Please ensure you check your Junk Mail and/or Spam folder if the email does not appear in your inbox. Keep this email safe for your records!

2.8)

If you make a mistake with your last FPS of the year

If you find a mistake with the values you submitted in your last FPS of the year, what you need to do depends on the type of mistake and when you find it.

See Appendix A – Correcting Last Period FPS Mistakes at the end of this guide.

2.9)

Send an Employer Payment Summary for Recovery Amounts to Date by 19 April 2015

As you should do every period, if you are entitled to recover money from the liabilities you would normally expect to pay HMRC (excluding Employment Allowance), you should send an EPS by 19 April 2015. I.e. for recoverable amounts in respect of employee payments for SMP, SAP, OSPP, ASPP or CIS Deductions Suffered.

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2.10) Print forms P60 for each employee

AccountEdge Plus prints form P60s onto HMRC’s pre-printed P60 (Single Sheet/Shortened) (2014-2015) – Certificate of Pay forms, which are designed for manual completion or with a Laser Printer.

To order your form P60s, please visit HMRC at: http://www.hmrc.gov.uk/payerti/forms-updates/forms-publications/onlineorder.htm

Keep in mind that it could take up to seven days to receive your form P60s from HMRC.

Important! You will not be able to print P60s for tax year 2014-15 from your company file after you start your new payroll year 2015-16. It is therefore recommended that you print your P60s as soon as practical, prior to starting your new payroll year. Alternatively, you will need to keep a pre-year end backup copy of your company file and return to it later in order to print P60s.

To print form P60s

a. Click on the Command Centres> Payroll> Print P60s menu option from the top of your screen.

b. The Review P60s – Single Sheet Before Printing window will open.

Select the employees for whom you wish to print a form P60. Please note that inactive employees and leavers will be listed in this window. However, you only need to print P60s for employees who worked for you up to the last tax month of 2014-15.

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2.11) Make a post-submission Backup of your company file

Note! We advise you to perform a backup of your company file (via the File> Back Up… option) after you have submitted your Final Submission and printed your form P60s.

Notes about backing up:

 Ensure that the backup file has an easily distinguishable, unambiguous name that clearly identifies itself as the final submission backup for the payroll year 2014/15. For example, ‘XYZLtd FinalSubDone14-15’

 Take a note of the exact name and location of the backup file you create, should you need it later to reprint P60s, payroll reports, or if HMRC performs an audit of you payroll transactions.

 Make at least three copies of the backup file: save one on your computer, keep one in the office safe and one in an off-site or online location, such as Dropbox.

 Speak to your computer administrator if you are unsure about how to make a backup.

 Remember, you can never have too many backups!

For more information about backup & restore, please click here.

2.12) Print Reports and reconcile your liability payments made to HMRC

Please print all your required payroll reports and also reconcile your payments made to HMRC with the P32 report, taking into consideration any refunds or rebates you may have received. You should also be able to check on your government gateway account to see it there are any outstanding amounts owing and make certain you pay what is due on time to avoid receiving any penalties.

Keep in mind that once you start a new payroll tax year 2015-16 in AccountEdge, you will no longer be able to print your 2014-15 payroll reports. However you will be able to refer to the backup made as per step 2.11, above.

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3) Start Your New Payroll Year 2016

3.1)

Upgrade to AccountEdge Plus (or AccountEdge Plus NE) 2015

If you have not already done so, you must install AccountEdge Plus 2015 or AccountEdge Plus NE 2015 in order to start a new payroll year 2015-16.

We will email all customers as soon as AccountEdge Plus 2015 is available for download. If you do not receive an email by late March, check back on the FAQ's support page for details about how to upgrade.

 6th April 2015 Tax Tables are included in AccountEdge Plus 2015 products only.

 AccountEdge Plus 2015 is required to calculate pay dated 6 April 2015 onwards.

3.2)

Start the New Payroll Year 2016

The Start a New Payroll Year process moves your payroll year forward into the following year, allowing you to process pays dated 6 April 2015 to 5 April 2016.

Start the New Payroll Year only when all tasks in previous sections above have been completed.

a. Go to the File menu at the top of your screen and choose Start a New Year> Start a New Payroll Year.

If you receive the message below, indicating that one or more paycheques were not recorded in the final period, or that a leaving date has not been entered for an employee, please refer to Appendix B – Missing Paycheques, at the end of this guide.

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b. The first window of the Start a New Payroll Year process will appear, shown below:

c. Click Backup and follow the instructions in the windows that appear. Notes about backing up:

 Ensure that the backup file has an easily distinguishable, unambiguous name that clearly identifies itself as the final backup for the payroll year 2014-15. For example ‘XYZLtd PayYrEnd14-15’

 Take a note of the exact name and location of the backup file you create, should you need it later to reprint P60s, payroll reports, or if HMRC performs an audit of you payroll transactions.

 Make at least three copies of the backup file: save one on your computer, keep one in the office safe, and one in an off-site or online location, such as Dropbox.

 Speak to your computer administrator if you are unsure about how to make a backup.

 Remember, you can never have too many backups!

For more information about backup & restore, please click here. Click Next after you have made your backup. d. The Important Information window will appear, shown below:

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NOTE! Starting a New Payroll Year will:

 Clear the Payroll History from the employee cards for the payroll year 2014-15. After the Start New Payroll Year process has finished, the only way to view your detailed 2014-15 payroll history will be to restore a pre-year end backup of the company file.

 Prevent you from printing payroll history reports for the payroll year 2014-15 (Note that you can still print activity based payroll reports until you roll over your separate financial year); your payroll bank entries will also remain.

 Clear any employee entitlement balances that do not have the Carry Remaining Leave Over to Next Year preference set in the employee’s Entitlement Payroll Category windows.

After reading the information window, click Next to continue.

e. The Define Your New Payroll Year screen will appear. Ensure the New Payroll Year Ends 5th April: 2016.

f. Click Next to continue to the Start New Payroll Year screen.

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3.3)

Load the 6 April 2015 Payroll Tax Tables

Once the Start a New Payroll Year process has been completed, you will need to load the 2015-16 payroll tax tables into your company file.

a. Click the Setup menu at the top of your screen, then Load Payroll Tax Tables.

b. Click through the windows to load the new tax tables.

c. Once complete, check that all is ready and correct by clicking Setup> Payroll Information. The General Payroll Information window will appear, similar to below:

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3.4)

Update Employee Tax Codes for the New Year

The Start New Year Procedure will not automatically adjust or uplift tax codes for individual employees.

Increased 2015-16 personal tax allowances (from say 1000L to 1060L) will need to be amended on each employee card, if required, as shown in the example below:

Further details can be found at HMRC by clicking here.

3.5)

Update Employee NI Table Letter (for under 21 year olds)

From 6 April 2015 employers with employees under 21 years old will no longer have to pay Class 1 secondary National Insurance contributions (NICs) on earnings up to the Upper Secondary Threshold (UST) for those employees.

Full details can be found from HMRC by clicking here.

New category letters

If you employ someone aged over 16 but under 21 you’ll have to choose 1 of 7 new National Insurance categories when assessing their secondary NICs. It’s the employer’s responsibility to ensure the correct category letter has been applied based on the age and circumstances of the employee.

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3.6)

Automatically Check For Updates

Ensure your AccountEdge Plus 2015 product is always up to date by selecting the Automatically Check For Updates option in the Setup> Preferences> System window. This will ensure that you are made aware of the availability of any updates when they are released for this version of AccountEdge Plus. An active internet connection is required for this feature to operate.

3.7)

Employment Allowance for 2015-16

Available to most employers from 6 April 2014, the Employment Allowance can reduce your Employer Class 1 NICs by up to £2,000 each tax year.

If your company started claiming Employment Allowance in 2014-15, there is no need to re-apply or re-inform HMRC of your wish to do so again in 2015-16.

Simply do the following:

1. Go to Setup> Payroll Information and check that your Employment Allowance indicator is ticked.

2. Use Section 3 of the Employment Allowance Guide to start claiming your £2000 allowance again from month 1 of 2015-16.

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Appendix A – Correcting Last Period FPS Mistakes

If you find a mistake with the values submitted in your last FPS’s of the year, what you need to do depends on the type

of mistake and when you find it.

Mistake When What to do

Wrong payments or deductions By 19 April

You’ll need to resend the last FPS with corrected figures:

1. Locate and delete only the affected employee paycheque(s) *

2. If applicable, accept the warning about the paycheque(s) already being sent in an FPS 3. Reprocess the affected paycheque(s) with the correct date and values

4. Resend an FPS for the reprocessed paycheque(s) **

5. Ensure the FPS Late Reporting Reason is set to H – Correction to earlier submission Wrong payments or deductions After 19 April

You’ll need to submit an Earlier Year Update (EYU) after you start the new payroll year 2015-16: 1. In your 2015-16 company, go to Command Centres> Payroll> Earlier Year Update 2. Select the Tax Year you wish to correct

3. Zoom [→] into the affected employee's EYU figures

4. Enter the correct final YTD values into the New Amount column for the relevant fields 5. AccountEdge will submit the difference between the original and corrected YTD amounts

Notes:

* You only need delete and reprocess the employee paycheques that have errors, not all the employee paycheques.

Detailed instructions about deleting transactions can be found here.

** You can mark this FPS as a Final Submission, if you wish. If in doubt about whether you have sent your end of year

Final Submission declaration, select Final Submission with this FPS.

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Appendix B - Missing Paycheques

During the Start a New Payroll Year procedure (Section 3.2, above) you may encounter the following message:

The message indicates one or more of three possibilities:

A. You have not yet recorded a final period payment for one or more of your employees. A useful report to aid in spotting these employees is the P11 PAYE report which can be found by going to the Index to Reports> Payroll tab. Complete any final period payments as necessary.

B. You have not entered a leaving date into one or more of your former employee’s records.

C. For one reason or another, a current employee was intentionally unpaid in the final period. If this is so, then a temporary leaving date of 05/04/2015 should be entered in the employee’s card. Unless the employee has genuinely left your employment, this leaving date should be removed once the new payroll year has been started.

Figure

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References

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