Creating a new first or additional payroll company
PROBLEM
A user would like a new payroll company added to an existing payroll system.
PROCEDURE
The procedure for creating a new payroll company is basically broken down into key stages as listed below:-
System Pre-Checks
Carry out the pre-checks several weeks before the site visit - this is especially important for systems installed for a while prior to the use of Payroll or for systems installed around April.
Ensure the system has the latest payroll release software.
The latest software release is known as 8.300.62 issued in October 2006 as a part of the KPay branch called Rev8-30-9090-PS-05+.
How to identify 8.300.62 software is installed:-
The easiest way by far is to check the software module record in System utilities, Kerridge menu, Software modules. The revision will refer to 8.300.62.
A more detailed check is :-
The system maintenance menu option called Payroll type parameters has a Warnings TAB option called Warn if payroll records missing.
If the software is not this latest release contact the accounts software support team and arrange for the software to be upgraded.
If in doubt about the software release, speak to the accounts software support team.
What do you want to do?
Basic file sizing and set up
Warning: ENSURE YOU HAVE THE LATEST PAYROLL WHEN SETTING UP A COMPANY OR SYSTEM.
Ask the customer for details on the number of companies and the payroll types involved.
Employee records - Extend the PE/00/00.PE.empee - the employee file if more than 300 records are required. 300 records being the default file size.
Create the company records within the employee records module, Miscellaneous options menu option called Add/modify employer details.
If requiring more than the 01 live company, ask if the companies are structured similarly, if not, create them now and then repeatedly enter the payroll company answering the prompts and creating files as listed further in this document, otherwise follow the procedure after one company is set up but before live payroll records are entered. When using Autopack utilities to create further companies ensure no users are on the source company.
Checking on disk space:-
Log on as a kcc user and shift halt by control y or shift control and break on KCML 4 or 7.40 systems using WDW. Enter a !sh to get into the unix shell.
To check the amount of space left on a disk, type df -k and check the available blocks, if this fails, use df by itself.
To check the amount of disk space required by company 1 payroll :-
Change to the relevant directory - e.g. cd /user2/kpay/data/PR
Use the Layout by module Autopack utility to find the data address.
Check the space used - e.g. du -s 01
The number returned is usually in 512 byte blocks so half the number for the number of kilobytes (1024 bytes) as the df command tends to return the available space in kilobytes.
Compare the space used against the available space to ensure there is room. If using a new data area, ensure the daily data and Payroll back ups are modified accordingly.
To exit - exit To get back to the application code type RUN
Creation
Within Autopack utilities, take the Create companies option and create the new company number, select the payroll module, enter the company number, leave the Autopack column blank and enter the company name, shift tab and take the Once only prompt and enter the unix address for the data, e.g. /user2/kpay/data. If in doubt about the data location, use the Autopack utility called Layout by company to determine where to place the data. Ideally the data is placed in the same data directory as other modules of the same company number.
Copy of data
Copying of company data is best done once one company is properly set up
Within Autopack utilities, take the Copy company data option, select the payroll module, the source company - usually 01 and the destination company/companies and continue when prompted.
On the new company, enter both the system parameters and system controls option with the System maintenance menu and save the record. Then exit the payroll module and re-enter.
What do you want to do?
File names and sizes summary
The payroll module consists of the following files. For the Type column there are three options as follows:-
C: Company file in the format CC.PR.xxxx, CC is the payroll company, xxxxx is the file name. For example, 01.PR.ssphs is company 01 sickness history.
T: Type file in the format CC.PR.xxxxx._T, CC is the payroll company, xxxxx is the file name, T is the payroll type. The payroll default record is an exception in the CC.PR.empee.iT format. For example, 01.PR.empee._M is the company 01 monthly payroll records file.
G: Global file in the format 00.PR.xxxxx, xxxxx is the file name. For example, 00.PR.payer is the global PAYE rates table file.
| Name |
Long name |
Type |
Number of records, sizing notes |
| addba |
Additions to BACS |
C |
Number of addition/deductions * number of payroll types in the payroll company |
| added |
Additions/deductions |
C |
100 |
| agent |
Agent details |
Z |
10 |
| arcee |
Archive payroll |
T |
10 records or if the Archive at year end payroll type parameter is ticked 7 years * maximum number of payroll records in the payroll empee file |
| arcph |
Archive history |
T |
10 or if the Archive at year end parameter type parameter is ticked 7 years * maximum number of history records in the payroll phist file |
| arcss |
Archive sickness |
C |
10 or if the Archive at year end parameter type parameter is ticked 7 years * maximum number of sickness records in the payroll ssphs file |
| aurea |
Audit Reasons |
Z |
100 |
| baxbf |
BACS buffer |
T |
10 if BACS not used or if used 5 * payroll records |
| baxct |
BACS categories |
Z |
10 |
| benba |
Benefits to BACS |
C |
Number of benefits in benef * number of payroll types in the payroll company |
| benef |
Benefits |
C |
100 |
| cclog |
Change control log |
T |
10 records or if the Change control log file used payroll type parameter is ticked 50 * maximum number of payroll records in the payroll empee file |
| ccpur |
Change control purge |
Z |
500 |
| colla |
Collation |
T |
10 records or if the Collation system used payroll type parameter is set to Y or R the Maximum batch number payroll type parameter * maximum number of payroll records in the payroll empee file |
| cotyp |
Court order types |
Z |
50 |
| court |
Court orders |
T |
The maximum number of payroll records in the payroll empee file |
| ctrls |
System controls |
C |
1 |
| dhist |
Detailed history |
T |
10 records or if the Detailed history payroll type parameter is ticked the Number of years to retain detailed data for * Maximum periods per year (12 for monthyl, 53 for weekly) * maximum number of payroll records in the payroll empee file |
| dssk2 |
Magnetic media |
T |
10 - this is a leagacy data file no longer used or supported |
| educa |
Educational establishment |
Z |
20 |
| empee |
Payroll records |
T |
Number of employees in the payroll type allowing for leavers for 2 years and company growth |
| eoper |
End of period options |
Z |
50 |
| grade |
Posting grade tables |
C |
100 |
| ineoy |
Internet EOY parameters |
Z |
20 |
| nirte |
NI tables |
Z |
20 |
| nminw |
National minimum wage |
Z |
5 |
| p1438 |
P14/P38 intermediate file |
T |
10 records or if the End of Year returns via the internet system parameter is ticked 8 years * maximum number of payroll records in the payroll empee file |
| p35ai |
P35A intermediate file |
Z |
200 |
| paybf |
Payroll buffer |
T |
10 * maximum number of payroll records in the payroll empee file. If expense code splits are used on the NL posting tables this may need increasing |
| payer |
PAYE rates |
Z |
10 |
| penba |
Pension to BACS |
C |
Number of pension schemes * number of payroll types in the payroll company |
| pensi |
Pension schemes |
C |
Number of pension schemes * number of payroll types in the payroll company |
| phist |
P11 history |
T |
12 * maximum number of payroll records in the payroll empee file on monthly payrolls. 53 * maximum number of payroll records in the payroll empee file on weekly payrolls. |
| pmthd |
Pay methods |
Z |
10 |
| prtyp |
Payroll types |
C |
10 |
| pttbl |
Rates table |
T |
10 |
| saptb |
SAP parameters |
Z/C |
10 - Normally Z type but C type if a mixture of Companies in and not in the Small Employer Relief scheme are used |
| secur |
Passwords |
C |
10 |
| sickr |
Sickness reasons |
Z |
100 |
| smptb |
SMP parameters |
Z/C |
10 - Normally Z type but C type if a mixture of Companies in and not in the Small Employer Relief scheme are used |
| spptb |
SPP parameters |
Z/C |
10 - Normally Z type but C type if a mixture of Companies in and not in the Small Employer Relief scheme are used |
| ssphs |
Sickness records |
C |
10 * maximum number of payroll records in the payroll empee file for all payroll types in the payroll company |
| sspsv |
SSP service length codes |
T |
20 |
| ssptb |
SSP parameters |
Z |
10 |
| systm |
System parameters |
C |
1 |
| trade |
Trades |
C |
100 |
Warning: Only create company files for saptb, smptb and spptb if you use a mixture of some companies in and some not in the Small Employer Relief scheme.
What do you want to do?
Setting up the payroll - Introduction
The payroll consultant should first set up the payroll software, create and set up the employer record within employee records, miscellaneous options menu, size the various data files using the above file list and set up the rates tables, addition/deductions, benefits, posting tables, parameters, default records and other miscellaneous data files. The customer should be encouraged to create additions/deductions, benefits, trades, grades once the option is reviewed by the consultant.
The main employee, payroll, sickness and possibly history P11 records then need to be set up by the user before the system can be used for live or parallel running of payroll.
Some key questions when setting up the rates and the additions/deductions:-
Are there are any % based pensions ? - if yes make use of the Pension flag to accumulate gross pay for pension.
Is holiday pay paid at the standard rate or some form of averaging calculation ? - if the latter the holiday earnings history needs to be accumulated and the payroll type parameters for Minimum hours/period to average and Averaging period for holidays need to be set. The payroll records also need Periods to average set up on the Static-2 TAB.
Is holiday logging to be used ? - If yes the rates entry for holiday pay must be H analysed for the holiday balance fields on the Totals TAB to be decremented if holiday hours or values are monitored, if only holiday day balances are monitored the user does not need to log a holiday line on the monthly based payrolls, simply log the number of holiday days via the Input pay details holiday option and have the Holiday input payroll type parameter - General-2 TAB - set to D.
Is it a weekly payroll ? - If yes, the holiday should be H analysed with the use of the holiday period counter for splitting of earnings for NI, week 1/month 1 tax calculations, council tax court orders.
Does the company pay occupational or company sick pay to all employees with or without an annual quota ? - If yes, the rate 1 line should be flagged to replace SSP, if some employees only receive company sick pay it is best to keep a separate company sick pay rate line.
Does company sick pay need to be separately analysed ? - if yes use a company sick pay line with separate analysis, by convention this uses the X analysis category.
What rates of overtime are paid ? - add method B overtimes with the required factors.
What do you want to do?
Employee records
Within the global employee records module, use the Add/modify employee details option to create the basic employee record. At this point the payroll type field will be left blank and cannot be entered.
What do you want to do?
Payroll records
Within the payroll module, choose the payroll company and payroll type, use the Add/modify payroll record option to create the main payroll record. Using Create and search will list all the employees that have an employee record for the current payroll company but no payroll record.
Refer to the Set up tip explaining which fields are important for the start of a tax year setup and for mid tax year set up and which fields are less important.
Fully set up the Static-1, Static-2, Payments, Pension, Rates, Additions/deductions and Benefit TABs.
Ensure that the P45 details on the Static-1 TAB are entered for current tax year joiners by following if necessary the payroll help file advice. Also enter any SSP1.L sickness certificate details from previous employers on the Static-2 TAB.
If using holiday accrual ensure the Static-2 TAB fields called Pay accrual and optionally Hours accrual or Days accrual are set up.
The hours on row 1 of the Rates TAB which is usually used for the main pay item should agree with the Standard hours per period field on the Static-1 TAB - this is automatically updated provided row 1 is a B method with a Keep status of D.
Set up staff loans as Addition/deduction records and add to the relevant payroll records.
The B/Forward columns of the Totals TAB are left with 0 values with the odd exception described below if you are setting up the payroll at the start of the tax year.
Holiday balances/accruals fields on the Totals TAB need B/Forwards entered if you are using holiday balances/accruals.
Set up the holiday gross pay on the Earnings TAB if required for holiday averaging purposes or if you simply wish to have recorded the previous 13 gross payments.
Set up the S.S.P/S.M.P gross pay history on the Earnings TAB if required for likely averaging purposes. In practice the last 8 records are sufficient for weekly payrolls or the last 2 records for monthly payrolls.
Set up the NI history on the National Insurance History TAB for any employee who has changed their NI code or NI director status during the tax year. The details entered should refer only to the particular code. Note that the Totals TAB NI information only refers to the latest NI detail and not the full year to date values with the exception of the field called Gross pay for NI that represents the full tax year.
Note: Tax credit details are no longer entered via the payroll system. If you have tax credits to process contact HM Revenue & Customs for advice.
What do you want to do?
Enter maternity details
Use the main payroll menu option called Enter maternity details to set up any existing expected week of childbirth, maternity pay periods and values.
Enter paternity details
Use the main payroll menu option called Enter paternity details to set up any existing expected week of childbirth, matching week, paternity pay periods and values.
Enter adoption details
Use the main payroll menu option called Enter adoption details to set up any existing matching week, adoption pay periods and values.
Enter court orders, student loan collection details
Use the main payroll menu option called Enter court orders/CSL to set up any existing court orders and Collection of Student Loans.
Refer to the Court order menu, Court order types to ensure the tables are accurate.
Enter sickness history
As a priority 6 payroll user, use the system maintenance menu option called SSP history to set up sickness records.
Sickness records in the current employment which are potentially linked in a single Period of Incapacity to Work (PIW) to the first payroll run on the KPay system should be set up as history records. The link period is currently 56 days.
The most recent record is the most important as this could have a bearing on further logged sickness, earlier sickness records in the same PIW are not so critical unless the employee is likely to approach/exceed the maximum weeks SSP liability of 28 weeks (2006/2007 figure) or the maximum linked period in years of 3 years for the 2006/2007 tax year.
If setting up the payroll mid year, the Year to date SSP details report will only be accurate if all the SSP is logged. Ensure the tax year dates are also accurate using the Systems maintenance, Payroll type parameters option.
Note: Sickness records to be logged for payment on the first week onwards of using the KPay system for parallel/live running should be logged as normal Live status records using the main payroll menu Enter sickness details option and not the SSP history option.
P11 history records
The payroll history P11 records for the current tax year are not normally logged when setting up a system mid tax year because of the mass of detail involved. It is probably easier to ensure you have a P11 print from any existing system prior to the transfer to the KPay system. If the customer wishes however to set the detail up this may be done as a priority 8 payroll user using the system maintenance option called Payroll history. The totals shown on a P11 report from log print will only reflect the payments made via the KPay system if the P11 records are not logged.
If you are setting up the system for the start of the PAYE year there are no P11 history records to be created.
Note: If you set up a payroll company mid PAYE year do not run and advise the customer not to run the Miscellaneous options menu, Utilities menu option called Verify P11 details since the P11 records will not verify with the payroll records if the P11 records have not been set up.
Parameters
You should ensure parameters are accurately set up for each payroll company and PAYE reference within the system maintenance menu. Refer to the following options:-
System parameters
Payroll type parameters
Internet EOY return parameters
The most important parameters are payroll type parameters like the period type and current period number and the system parameter called Integrated accounts.
Passwords and access
Refer to the Summary of setting a new employee records, payroll or human resources user.
The most senior payroll user responsible for applying the update should be given priority 8, others can be set to priority 6 although for a mid tax year set up a priority 8 is required to enter brought forward data.
All the payroll operators should be given a priority for the employee records module. Priorities 1, 2 and 3 are reserved for display only, priority 4 is the lowest priority to allow users to create new employee records.
The software supplier logon for KPay systems will normally be kcckpay and for Dealer Management Systems will be normally be kcc. Hosted servers will follow a different convention. The password will be advised by the person setting up the system and stored on the customer payroll database.
Holiday accrual set up
If holiday accrual is to be used ensure that the detailed advice within the link Accrual setup is followed.
System backup
Check the daily data backup is backing up all of the data on the KPay system.
Directly edit the backup script from the unix shell. Refer to Basic file sizing and set up section for guidance on obtaining the unix prompt. Set up a Payroll backup that backs up all programs, database files and data including company 00, Standard data, Training data and live data for the employee record (PE), Payroll, (PR), optional Human Resources (PN) and optional Document Archive (AK) modules. If in doubt, log an environment call for this to be done for you. Advise the customer of the importance of running the payroll backup prior to a payroll upgrade being applied and pre payroll year end, this should be backed up onto a separate tape, not a regular daily or weekly tape and kept for 7 years if possible.
System options
Set up the system options as listed in the File names and sizes summary section if required.
Click Collation set up and create the colla payroll type file. See File names and sizes summary.
Click Detailed history set up and create the dhist payroll type file. See File names and sizes summary.
Click Tax year end archive set up and create the arcee and arcph payroll type files and the arcss payroll company file. See File names and sizes summary.
Click Change control audit log set up and create the aurea and ccpur global files and the cclog payroll type file. See File names and sizes summary.
Click Internet end of year returns set up and create the agent, educa, ineoy and p35ai global files and the p1438 payroll type file. See File names and sizes summary. See also the Internet processing check list.
Register the payroll
The payroll system should have been registered but for extra safety please send an EMail to uksadmin@kerridge.com detailing the following:-
Advise that a new payroll company or system has been set up
Customer name
Address of the payroll contact
Telephone number of the payroll contact
EMail of the payroll contact
Preferred documentation delivery method - EMail or post
Software release installed
Warning: If the system is not registered payroll updates will not be supplied
