A benefits data file exists for each payroll company allowing for all of the employer provided benefits to be set up. A limit of up to forty benefit lines may be added to each payroll record and then reported on for P11D purposes.
To access Benefits
The Payroll Password form is displayed.
Enter your payroll password.
The PAYROLL menu is displayed.
Select the Miscellaneous options option.
The PR MISCELLANEOUS MENU is displayed.
Select the Benefits option.
The Benefits form is displayed.
Benefits Form
The Benefits form is displayed when you select the Benefits option from the PR MISCELLANEOUS MENU.
What do you want to do or be advised about?
Maintenance of the Benefits
The Benefits record consists of four TABs called Benefit code details, BACS, Limits and Audit. The BACS TAB is only shown if a BACS company identifier is defined either on the General TAB of the System parameters or the General - 1 TAB of the payroll type parameters.
To create a Benefit code first click the Create button and then enter the Benefit code and other details followed by clicking the Create button. To amend a Benefit record enter the Benefit code and click the Amend button, make the amendments and click the Save button to save the changes.
Benefit code details Tab
The Benefit code details form is displayed when you select the Benefit code details TAB from the Benefits records form.
Benefit code: Enter the four character Benefit code.
Tip : Click the Ellipsis button
to search for a benefit code from the benefits file.
Description: The sixteen character description of the benefit code.
Payment method: Select from one of the following from the drop down menu:-
Value: Value directly entered. If special or advanced pension calculations are used it is possible for a value to be generated as a % of gross pay for pension even though the record may be set up as value based.
Daily value: Value directly entered is multiplied by the number of days in the payroll period taking into account the employee joining and leaving dates and any advanced holiday. The first and last periods of the PAYE year are adjusted to reflect the true tax year dates starting the 6th April and ending on the 5th April. For example, in April 2007 if the payroll periods begins 01/04/2007 and ends 30/04/2007 there will be a maximum of 25 days of benefit generated due to the start date being adjusted to the 6th April.
% of Basic: Percentage of the Static 1 TAB field called Basic period pay
% Specific: Percentage of the Pension TAB field called Fixed salary.
% NI gross: Percentage of the Totals TAB field called Gross Pay For National Insurance (N.I.). The Gross pay for National Insurance is first derived by processing the rates table, additions, deductions, SSP, SMP, SPP and SAP.
% Tax gross: Percentage of the Totals TAB field called Gross Pay For Tax. The Gross pay for tax is first derived by processing the rates table, additions, deductions, SSP, SMP, SPP and SAP.
% Pension gross: Percentage of the Totals TAB field called Gross Pay For Pension. The Gross pay for pension is first derived by processing the rates table, additions, deductions, SSP, SMP, SPP and SAP.
Type: Select from one of the following from the drop down menu:-
Fixed: A fixed amount or percentage for the benefit is entered on the benefit record and this is processed whenever the benefit code is added to the payroll record at an Active status.
Specific: A different amount for the benefit is entered on the payroll record Benefits TAB field called Specific either using the Input pay details or Add/modify payroll record options. This is processed whenever the benefit code is added to the payroll record at an Active status.
Temporary: A different amount for the benefit is entered on the payroll record Benefit TAB field called Specific either using the Input pay details or Add/modify payroll record options. This is processed whenever the benefit code is added to the payroll record at an Active status but is reset to a zero amount when selecting a new payroll period.
Factor type: This field is defaulted in by the payment method above. It shows V for values and % for percentage as a reminder.
User code: Enter the appropriate user code to be used in reports such as a selection criteria. For example, all pension benefits may have a user code of the letter P.
Clear brought forward balance: This determines when the brought forward total on the payroll record for the benefit code is cleared down. Select from one of the following from the drop down menu:-
N: Never. The brought forward total is never reset to 0.
P: Payroll year end. The default and most common option is to reset to 0 the accumulator as a part of the payroll year end.
C: Customised End of Year. The brought forward total is reset to 0 when closing the payroll period number defined by the General 1 TAB payroll type parameter called Last period in customised year. Typical examples are to set this to a calendar year such as month 9 or week 39 or to the company financial year.
Update pension employer: Tick this check box if the Totals TAB field called Pension (Employer) is to be updated with the value of the benefit and thus reported.
Note: If the BACS payment method is used on the benefit record the value is not transmitted a second time if the Pension TAB also is set up to use a BACS payment method.
Applicable if on holiday: Select from one of the following from the drop down menu:-
No: The benefit calculation is applied to only the normal payroll period and not any advanced holiday periods entered using the Input pay details Holiday TAB field called Holiday periods. For example, if a benefit is valued at 100 pounds and the employee has 2 advanced holiday weeks the total value generated is 100 x ( 1 + 0) = 100 pounds.
Yes: The benefit calculation is applied to both the normal payroll period and any advanced holiday periods entered using the Input pay details Holiday TAB field called Holiday periods. For example, if a benefit is valued at 100 pounds and the employee has 2 advanced holiday weeks the total value generated is 100 x ( 1 + 2) = 300 pounds.
Only if on holiday: The benefit calculation is applied to only the advanced holiday periods entered using the Input pay details Holiday TAB field called Holiday periods. For example, if a benefit is valued at 100 pounds and the employee has 2 advanced holiday weeks the total value generated is 100 x ( 0 + 2) = 200 pounds.
Applicable if absent: If this check box is set to a blank then this code is not applied if the employee receives no basic pay, that is Hours analysed as 'B'asic in the rates table are zero.
Nominal Ledger cost centre: This must be set to be the same as the Cost Centre for B/S codes without analysis in the Nominal Ledger parameters unless a specific cost centre applies to this benefit. By setting this to the Cost Centre for B/S codes without analysis the NL postings will use the cost centre found on the employee's record if the expense code is a Profit and Loss expense code or the Static 1 Balance sheet cost centre field on the payroll record if the expense code is a Balance Sheet expense code.
Tip : Click the Ellipsis button
Location cost centre increment: This check box may only be accessed if you have the payroll system parameter called Use location offset ticked and if the employee records module has the system parameter called Locations module set to either PE or GB and the cost centre on the benefit record is not the same as the Cost Centre for B/S codes without analysis in the Nominal Ledger parameters. Location increments mean the cost centre used for the nominal ledger posting is that declared on the benefit code plus that declared on the location record used on the employee record. This is typically used on a divisional nominal ledger system where there are many companies using one payroll company. For example, company 01 uses cost centre 180 for a benefit, company 02 uses cost centre 280 for a benefit. The benefit record could be set up to declare cost centre 80 and company 01 incremented by 100 via the lo cation record, company 02 incremented by 200 via the location record.
Tip : If you wish to use location increments you may set up the benefit record to contain a non existent cost centre by the following method:-
- Enter a valid cost centre code different to the Cost Centre for B/S codes without analysis in the Nominal Ledger parameters
- Tick the check box called Location cost centre increment
- Change the cost centre to the non valid cost centre
Debit Nominal Ledger expense code: The debit expense code used for the benefit posting.
Tip : Click the Ellipsis button
Location debit expense code increment: This check box may only be accessed if you have the payroll system parameter called Use location offset ticked and if the employee records module has the system parameter called Locations module set to either PE or GB. Location debit expense code increments mean the debit expense code used for the nominal ledger posting is that declared on the benefit code plus that declared on the location record used on the employee record. This is likely to have less use than the cost centre increment. Unlike the cost centre field expense codes entered on the benefit record must always exist in the nominal ledger since the expense code type - Balance sheet or Profit & Loss is first used to determine which increment mask to use on the location record.
Credit Nominal Ledger expense code: The credit expense code used for the benefit posting.
Tip : Click the Ellipsis button
Location credit expense code increment: This check box may only be accessed if you have the payroll system parameter called Use location offset ticked and if the employee records module has the system parameter called Locations module set to either PE or GB. Location credit expense code increments mean the credit expense code used for the nominal ledger posting is that declared on the benefit code plus that declared on the location record used on the employee record. This is likely to have less use than the cost centre increment. Unlike the cost centre field expense codes entered on the benefit record must always exist in the nominal ledger since the expense code type - Balance sheet or Profit & Loss is first used to determine which increment mask to use on the location record.
Factor (Value): This field is used by the Fixed Amount only to record the benefit value.
Rounding method: The rounding method is only available for % payment methods. Select from one of the following from the drop down menu:-
N: None. No rounding is to be used.
V: Even handed. For example, if a benefit is valued between 123.01 and 123.49 pounds and rounded even handed to 1 pound the result is 123 pounds. If the value is between 123.50 and 123.99 pounds and rounded even handed to 1 pound the result is 124 pounds.
E: Employee favour. For example, if a benefit is valued at 123.01 pounds and rounded in the employee's favour to 1 pound the result is 124 pounds.
R: Employer favour. For example, if a benefit is valued at 123.99 pounds and rounded in the employer's favour to 1 pound the result is 123 pounds.
Round to: The amount to be rounded to. This field is only available for % payment methods when the rounding method is not N.
Edit priority: The priority between 2 and 9 that may edit the benefit code or amend the benefit code on a payroll record via the Input pay details or Add/modify payroll record options. The default priority when creating a benefit record is 2. If your payroll priority is too low and you attempt to amend a benefit record you are shown an error message Insufficient priority to amend this benefit.
Include in tax gross: Tick this check box if the benefit value is to be taxed, for example, child care vouchers.
PAYE weekly offset: Enter the amount that is offset per week in the PAYE calculation. The amount is automatically adjusted for multiple tax period weekly or monthly payroll runs. For example, for child care vouchers this is entered as 55 pounds per week for 2006/2007, this equates to 55 * 53/12 rounded up = 243 pounds of tax relief.
Include in NI gross: Tick this check box if the benefit value is to be subject to National Insurance, for example, child care vouchers.
NI weekly offset: Enter the amount that is offset per week in the NI calculation. The amount is automatically adjusted for multiple tax period weekly or monthly payroll runs. For example, for child care vouchers this is entered as 55 pounds per week for 2006/2007, this equates to 55 * 53/12 rounded up = 243 pounds of NI relief.
What do you want to do?
BACS Tab
The BACS form is displayed when you select the BACS TAB from the Benefits records form.
The BACS TAB is only shown if the payroll type is linked to a BACS company.
BACS payment: Tick the BACS payment field if the benefit record is to be paid by BACS. BACS payments are consolidated into a single transaction per benefit code for all of the employees within each payroll type when copied into the BACS submission module. Leave it blank if the payment is being paid by another method such as cheque. Once the BACS payment field is ticked the other fields on the BACS TAB are accessible.
Bank sort code: Six digit sort code.
Note: If the sort code entered begins with zeros the leading zeros are not shown but are used on the BACS transmission.
Bank account number: Eight digit account code.
Bank account type: Normally this is zero but this needs to checked with the financial organisation represented by the benefit code. This is required for BACS payments.
Bank account name: Eighteen character account name.
BACS reference: Eighteen character reference for the benefit payment.
Payment category: A one character payment category if payments are to be generated into their own BACS batch otherwise left blank if the payment is to be combined with other BACS transactions for the payroll period.
Tip : Click the Ellipsis button
Payment made to BACS: The amount of the benefit for each payroll type transferred to the BACS Submission module for transmission to BACS during the current payroll period. This amount allows for two or more payment runs to be processed for the employee by BACS within a single payroll period. If money has been transferred to the BACS Submission module using the Miscellaneous options menu option called Transfer BACS buffer to BACS but the money is not being transmitted to BACS due to an error it may be necessary to reset this field to zero using the Miscellaneous options menu, Utilities menu option called Zero off BACS transfer amounts.
What do you want to do?
Limits Tab
The Limits form is displayed when you select the Limits Tab from the Benefits Records form. The limits are applicable per pay period and therefore advanced holiday on a weekly payroll will be used to increase the limit.
Warning maximum: This is the maximum value that may be entered before a warning is shown to the user during the input process and also when calculating the period payroll.
Action maximum: This is the maximum value that may be entered before an action to override is shown to a user whose priority matches or exceeds a priority defined by the payroll type parameter called Override action maximum. A user with a lower priority may not enter a value above this limit or adjust the limit once a limit has been entered. The calculate period payroll option will advise of values aboves this limit with a warning.
Note: % of Pension gross, % of Tax gross and % of NI gross method benefit records will not be calculated within the input pay option therefore if their action maximum level is exceeded an Action status message is generated when calculating the period payroll.
What do you want to do?
Audit Tab
The Audit form is displayed when you select the Audit Tab from the Benefits records form.
The audit data TAB is system maintained and may be used to check when and by who a benefit record has been created or amended.
The following fields are displayed on the Audit Tab. All of these fields are self-explanatory and thus no explanation is supplied.
Date created
Time created
Created by
Creation terminal
Date amended
Time amended
Amended by
Amendment terminal
What do you want to do?
PUSH BUTTONS:
Exit: Returns you to the PR MISCELLANEOUS MENU.
Help: Displays help on the current application in your default company browser.
Create: Click the Create button before entering a Benefit code or any other details if creating a new benefit record.
Amend: Click the Amend button after entering a Benefit code if wanting to amend the benefit code for the current payroll company.
Save: Saves any changes that you have made to the benefit code form.
Cancel: Cancels any changes that you have made to the benefit code form and returns you to the PR MISCELLANEOUS MENU.
Summary of the Benefits
A file of benefits can be maintained in the system and will be common to all payroll types within the payroll company. The benefits relating to each employee are processed and a period value determined from the flag settings on the benefits record. These are employee benefits paid by the company on behalf of the employee through payroll instead of accruals. For example:- BUPA, Insurances, Non Contributory pensions.
A default set-up is available for each payroll type which is part of the Payroll default record giving a list of codes which are required for each new employee and are defaulted into each new payroll record when it is created.
None of the benefit values generated are included in the Totals TAB payroll field called Gross Pay or any other of the Gross Pay fields.
For type FIXED the period value is given by the Factor (Value) field on the code in the benefits record and is transferred to the period value each time the payroll is run. This means that global changes are not necessary.
For TEMPORARY and SPECIFIC types the value will be found on the employees payroll record. If the value on the employee record is zero and the code is not a Fixed type then NO ACTION is taken.
A clone option exists in create mode allowing faster record creation.
Only a priority 3 user may amend the benefits.
