The Change employee company/type utility allows you to move a range of employees from one payroll type to another on the payroll system. The option can only be run whilst both the source and destination payroll types are unconfirmed and you have access to both payroll types. The manner in which this utility works will depend on whether or not a different payroll type is being used, the Pay As You Earn tax office and employer reference for the payroll companies and the director status of the employee.
To access the Change employee company/type option:-
The Payroll Password form is displayed.
Enter your payroll password.
The PAYROLL menu is displayed.
Select the Miscellaneous options option.
The PR MISCELLANEOUS OPTIONS menu is displayed.
Select the Utility options option.
The UTILITIES menu is displayed.
Select the Change employee company/type option.
The Change employee company/type form is displayed.
The Change employee company/type form is displayed when the Change employee company/type option is selected from the UTILITIES menu.
What do you want to do or be advised about?
What processes should have been performed prior to using the Change employee company/type utility?
The following processes should have been considered and successfully completed before using the Change employee company/type option:
Confirm that the employees are to be transferred by checking with your Human Resources department or the relevant manager(s) of the business.
Check the Pay As You Earn (PAYE) tax office and employer references if the employee is to be transferred between payroll companies.
Check that all outstanding payments have been processed for each employee and the source payroll type has had the Select new period option run.
If an employee is being transferred between two companies with different PAYE references check that the leaving date has been entered on the employee record, the source payroll type has been calculated, a P45 has been printed and the payroll selected into the next payroll period such that the left flag on the Static 1 TAB of the payroll record has been set to Y.
Make sure you have run an overnight data backup of your employee records, payroll and if used, human resources and document archive data.
Ensure you have selected a correct printer for payroll purposes in condensed mode since the Change employee company/type option will print an audit report.
Now proceed to complete the Change employee company/type form.
Use of the Change employee company/type form
Complete each of the fields, the Automatically adjust check boxes if relevant, the Start date setting if relevant and click OK.
First employee number: The first employee number to be transferred. For security reasons this field may not be left as 0..
Tip: Click the Ellipsis button
to select an employee from the payroll records database.
Last employee number: The last employee number to be transferred. For security reasons this field may not be left as 0. The last employee number must also be greater than the first employee number.
Tip: Click the Ellipsis button
Destination company: The payroll company that the range of employees selected are to be transferred to.
Tip: Click the Ellipsis button
Destination pay type: The payroll type that the range of employees selected are to be transferred to. The ability to transfer employees to the destination payroll type is controlled by the General - 2 TAB payroll type parameter called Transfer allowed being set to Yes always allowed or being set to Password access and the payroll password record for the destination payroll company having the Transfer column ticked.
Tip: Click the Ellipsis button
Automatically adjust
Various categories of fields are listed which may automatically be adjusted when transferring an employee from one payroll type to another. For example, when an employee is transferred from a weekly payroll to a monthly payroll various fields are adjusted in value by multiplying their existing value by 52/12 = 4.3333
Standard hours per week, annual salary, basic pay: Static 1 TAB fields.
Holiday pay and hours accrual: Static 2 TAB fields.
Court order repayment and minimum earnings: Court order fields.
Minimum savings and amount per period: Payments TAB fields.
Pension details - fixed amount, deduction amount, values: Pension TAB fields.
Holiday history for holiday earnings purposes: Earnings history TAB fields.
NI Gross history for SSP and SMP calculations: Earnings history TAB fields.
Specific or temporary value based additions/deductions: Additions/deductions TAB fields.
Specific or temporary value based benefits: Benefits TAB fields.
Rates hours: Rates TAB fields.
Start date setting
If an employee is being transferred between payroll companies choose from one of the three options for setting the start date in the destination payroll company. The Continuous service date is the default setting as this is felt to be the most common setting. That is, the date the employee started at the source payroll company. The start date options are as follows:
Continuous service date.
Old company leaving date.
Today's date.
PUSH BUTTONS:
OK: Proceeds to perform the transfer of the range of employees and prints an audit report to the current selected printer. The OK button will not be enabled to click until you have entered the fields on the change employee company/type form correctly.
Exit: Returns you to the UTILITIES MENU with no transfer being performed.
Help: Displays help on the current application in your default company browser.
The change employee company/type process and audit report
The employee record, payroll data files and optional human resource files will be updated. The nature of the update depends on the transfer:- data records will be created in the new payroll type and deleted from the source payroll type when either of the following conditions apply:-
If the employee is transferred between payroll types within the same payroll company.
If the employee is transferred between payroll companies with the same PAYE reference.
If the employee is a director for NI being transferred between two companies trading in association. You will be asked to confirm the trading in association status if the employee being transferred is a director for NI purposes.
On the other hand, if the employee is being transferred between payroll companies with different PAYE references and is not a director for NI purposes a new employee and payroll record will be created and the source records left in place for payroll year end reporting. The Human resources module if installed is also updated to reflect any new company number too.
When an employee is transferred between payroll companies it is also possible that a new employee number needs to be allocated if the employee number previously used is found to already exist in the destination company. The next free employee number is shown to you with options to either automatically allocate the next free employee number or to manually allocate your own employee number. Once the new employee number is allocated in such circumstances all occurrences of the employee number within the employee records, payroll and if installed, human resource modules are updated.
If the employee being transferred between companies with different PAYE references is a director you will asked to confirm if the companies are carrying on business in association as defined by the HMRC CA44 booklet. Answer Yes or No to this question. If you answer No ensure a deferment certificate is sought before the first use of the calculate pay in the destination payroll type.
If you have selected a range of employees you will be advised on how many employees are about to be transferred and you should either select OK if you agree with the continuation of the transfer or select Exit if you do not agree with the transfer.
The payroll change control log may be written to with the payroll company identifier, payroll type and employee number changes if the General 2 TAB payroll type parameter called Change control log file used is ticked and if the COMPANY, PAYTYPE and EMPLOYEE fields have been set up for audit within the Change log setup option.
The employee records change control log may be written to with the payroll company identifier, payroll type and employee number changes if the Employee records system parameter called Use change control log is ticked and if the COMPANY, PAYTYPE and EMPLOYEE fields have been set up for audit within the Change log setup option.
The human resources change control log may be written to with the payroll company identifier and employee number changes if the Human resources system parameter called Change control log used is ticked and if the COMPANY and EMPLOYEE field have been set up for audit within the Change log setup option.
An audit report is printed on the current selected printer detailing which employee numbers have been transferred from which source payroll type and company to which destination payroll type and company. The adjustment categories and setting of the destination payroll type start date together with your user id, time and date are printed on the audit report.
What processes should be performed after using the Change employee company/type utility
The following processes should be performed after using the Change employee company/type utility:
Review any court order records using the main payroll menu Enter court orders / CSL - payment band court orders in particular are likely to require changing.
Check each part of the payroll record adjusted if this is relevant to ensure you are satisfied with the new settings of the fields.
Review any SMP, SPP and SAP date and payment fields using the main payroll menu options Enter maternity details, Enter paternity details and Enter adoption details since the payment within the first payroll period of the destination payroll type may need to be changed.
Review the rates table hours entered.
