axis diplomat Payroll User Guide Supplement March 2012 |
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6. The New Year |
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After the Year End Processing has been completed you are ready to start the first payroll period of the new tax year. N.B. You may run your first weekly payroll before completing your year end procedures for your monthly payroll. |
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6.1 Tax Code Changes |
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The standard personal allowance increases from £7475 to £8105. The code for emergency use with effect from 6th April 2012 changes accordingly to 810L There is a general uplift of L suffix tax codes by 63. 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 on Form P9(T) to be operated from 6th April 2012, the specified code must be entered after the year end has been run. Refer to form P9X(2012) for further details. |
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6.2 National Insurance Contributions |
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Calculate Net Pay will check the tax year / pay date and automatically apply the following earnings thresholds effective from 6th April 2012:
The standard Employee and Employer NI contribution rates are unchanged. The contracted-out rebate rate has been reduced to 1.4% and 3.4% respectively. 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. Refer to Employer Help Book E12 for further details. |
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6.3 Statutory Sick Pay |
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The weekly rate increases from £81.60 to £85.85. The appropriate daily rate is determined by the number of qualifying days. Eg. The daily rate for an employee with five qualifying days increases from £16.32 to £17.17. Unless you qualify under the Percentage Threshold Scheme you are not entitled to recover any of the SSP you pay to your employees. For details of the scheme refer to Employer Help Book E14 and the F1 HELP for the ‘Calculate Monthly Remittance’ function. |
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6.4 Statutory Maternity / Paternity / Adoption Pay |
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The standard weekly rate increases from £128.73 to £135.45 The amount of SMP / SPP / SAP that may be recovered is unchanged for employers who do not qualify for Small Employers Relief (SER) who can recover 92% of the SMP / SPP / SAP paid to their employees. Employers who do qualify for Small Employers Relief (SER) can recover 100% of the SMP / SPP / 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. Refer to Employer Help Book E15, Employer Help Book E19 and Employer Help Book E16 for further details. |
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6.5 Student Loans |
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The annual threshold for the collection of Student Loans increases from £15,000 to £15,795. The deduction percentage rate remains unchanged at 9% of earnings above the threshold. This is relevant to any employers who have received either an SL1 or a P45 with a 'Y' in the 'Continue Student Loan Deductions' box for an employee. Refer to Employer Help Book E17 for further details.
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6.6 PAYE Income Tax |
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Calculate Net Pay will automatically apply the appropriate annual tax bands for the tax year / pay date as follows:
The new bands for 2012-13 are effective from the first pay day on or after 6th April 2012. 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. Refer to Employer Help Book E12 for further details. |
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