axis payroll User Guide Supplement March 2017

8. The New Year

 Printer Friendly Version

The Employment Allowance remains at £3000 per year from 6th April 2017.

If you were eligible for and claimed Employment Allowance for the tax year ending 5th April 2017 no action is required to claim from 6th April 2017.

If you have become newly eligible to claim the 'Employment Allowance' you will need to go to 'Amend Employer Details' for the payroll data set through which you wish to claim the allowance and tick the 'Employment Allowance' option. Note: if you are operating more than one payroll data set, you should only claim through one data set. Calculate Monthly Remittance will then include your claim for the allowance. You will need to create and submit an RTI Employer Payment Summary in the first month of the tax year to advise HMRC that you are claiming the allowance setting the 'Employment Allowance claim' option to 'Yes'.

The standard personal allowance increases from £11000 to £11500.

The code for emergency use with effect from 6th April 2017 changes accordingly to 1150L

There is a general uplift of L suffix tax codes by 50 and a corresponding uplift to M and N suffix tax codes by 55 and 45 respectively. The increment is applied automatically to all existing employees by the 'Year End Processing' routine.

Where you receive a code notification for an individual employee to be operated from 6th April 2017 (on Form P9(T) or via your online HMRC account), the specified code must be entered after the year end has been run.

Refer to form P9X(2017) for further details.

Calculate Net Pay will check the tax year / pay date and automatically apply the following Class 1 earnings thresholds effective from 6th April 2017:

The Employee and Employer NI contribution rates for NIC categories A, B, C, H, J, M and Z remain unchanged.

Calculate Gross Pay will continue to check employees in the 'under 21' and 'under 25' N.I. categories and amend their category to a standard category if that employee has achieved the age of 21 or 25 by the pay date of the period being run.

Note: The 'Print Payroll Parameters' function, accessed from the 'Supervisor Functions' menu, may be used to produce a report of the rates applicable to each NI category and band of earnings.

The weekly rate has increased to £89.35.

The appropriate daily rate is determined by the number of qualifying days.

Eg. The daily rate for an employee with five qualifying days is £17.87.

Statutory Maternity Pay (SMP) is paid at 90% of the employee's average weekly earnings for the first six weeks. The standard weekly rate for the remaining weeks is £140.98 or 90% of the employee's average weekly earnings, whichever is lower.

Statutory Adoption Pay (SAP) is paid at 90% of the employee's average weekly earnings for the first six weeks. The standard weekly rate for the remaining weeks is £140.98 or 90% of the employee's average weekly earnings, whichever is lower.

Statutory Paternity Pay (SPP) is payable for 1 or 2 weeks at the standard weekly rate of £140.98 or 90% of the employee's average weekly earnings, whichever is lower.

Statutory Shared Parental Pay (ShPP) is payable at the standard weekly rate of £140.98 or 90% of the employee's average weekly earnings, whichever is lower. Information for employers is available at http://www.gov.uk/shared-parental-leave-and-pay-employer-guide/entitlement

The amount of SMP/SPP/ShPP/SAP that may be recovered for employers who do not qualify for Small Employers Relief (SER) is 92% of the SMP/SPP/ShPP/SAP paid to their employees.

Employers who do qualify for Small Employers Relief (SER) can recover 100% of the SMP/SPP/ShPP/SAP paid to their employees plus NIC compensation of 3%.

A ‘small employer’ is one who paid (or was liable to pay) total gross class 1 NICs of £45,000 or less in the individuals qualifying tax year.

The annual threshold for the collection of existing Plan 1 Student Loans increases from £17,495 to £17,775.

The annual threshold for the collection of Plan 2 Student Loans is £21,000.

The deduction percentage rate remains unchanged at 9% of earnings above the threshold.

Calculate Net Pay will automatically apply the appropriate annual tax bands for the tax year / pay date as follows:

The new bands for 2017-18 are effective from the first pay day on or after 6th April 2017.

NB. A report of all the current statutory deduction and payment rates can be produced using the ‘Print Payroll Parameters’ function which is located on the Supervisor Functions menu.

As the qualifying earnings are reviewed annually, please contact your pension scheme provider to see if there are any changes.

If so, this can be changed in Amend Pension Scheme Details.

 Printer Friendly Version