Thursday Dec 20, 2012

PeopleSoft Global Payroll UK - Autumn Statement Changes

Autumn Statement Changes for 2013-14

On 5th December 2012 the Chancellor of the Exchequer delivered his Autumn Statement.  Following the announcement, updated rates and thresholds were released affecting certain calculations with respect to National Insurance, PAYE and Statutory Payments.

In addition, new thresholds have been announced for the student loan calculation and for automatic enrolment into a pension scheme. The changes are effective 6th April 2013. Our Position Statement includes these legislative updates and the delivery timelines for the respective changes. We advise customers to review the position statement to keep up-to-date. The Position Statement can be found on My Oracle Support,  Document ID 1514384.1.

Real Time Information White Paper

We have just published a White Paper on  Real Time Information in the Peoplesoft Global Payroll UK product.

On 27 July 2010, Her Majesty’s Revenue & Customs (HMRC) published a discussion document entitled ‘Improving the operation of Pay As You Earn (PAYE)’.  Real Time Information (RTI) is being introduced to improve the operation of Pay As You Earn (PAYE). It is probably the biggest change to hit PAYE since PAYE was first introduced in 1944.

The changes include the collection and transmission of tax and other deductions being made to HMRC at the time a payroll is confirmed, rather than at the end of the tax year.  RTI will ensure that the Government knows in real-time how much tax and National Insurance is due from each employer.

Employee details will be far more accurate and up-to-date. Tax codes will also be issued quicker meaning that tax should be more accurate on a month-to-month basis than is currently the case, resulting in fewer refunds by HMRC. In addition, through RTI, any false new starter details provided by the employee will be automatically highlighted. Any second jobs not declared will also be flagged.

With instant access to hours worked and statutory information about employees being submitted to HMRC at the start of their employment, it will also be easier to calculate how much people are due from a universal tax credit point of view and enable the Government to clamp down on benefit fraud.

RTI generate the following output files to HMRC based on 2012-13 MIG specification:                                        

Employer Alignment Submission (EAS)
Full Payment Submission (FPS)
Employer Payment Summary (EPS)
National Insurance Number Verification Request (NVR)

and the following input file:                                                        

NINO Verification Reply (NVREP)

The White Paper, available on My Oracle Support (Document ID 1514065.10,  provides valuable information for UK based employers (including UK subsidiaries of overseas organizations), who plan to implement RTI in PeopleSoft Global Payroll UK to comply with HMRC regulation.

Note -

MIG file specification that is released by HMRC for 2013 – 14 shall be delivered separately along with split scheme file submissions. Changes to RTI file specification 2013-14 shall be included in the White Paper.

Wednesday Dec 19, 2012

Legislative Updates for PeopleSoft Global Payroll Japan

Income Tax YEA Changes from 2013

The National Tax Agency has announced to change Income Tax of YEA for 2013 because of Reconstruction Tax (Fukkou Tokubetsu Shotokuzei). Our Position Statement has been revised to include these legislative updates and the delivery timelines for the respective changes. We advise customers to review the position statement to keep up-to-date. The Position Statement can be found on My Oracle Support, Document ID 1371661.1.”

Tuesday Dec 18, 2012

Fiscal Cliff

As December 31, 2012 quickly approaches, so does the deadline to extend the Bush Era Tax Cuts which were extended under the Budget Control Act of 2011.  PeopleSoft realizes that there may be some customer anxiety over the delayed withholding tables. PeopleSoft is unable to move forward with delivering the tax changes until we get the official ruling and withholding tables from the IRS.  Please be assured that our legislative analysts are in the loop and are monitoring this situation daily.  Any changes will be included in a special posting. We have created a Knowledge Document in My Oracle Support, Document ID 1332295.1 to keep you up to date on the pending changes.

This blog is dedicated to topics focused on legislative updates to PeopleSoft Applications including Human Capital Management and Financials.

For other useful information about PeopleSoft Applications see the PeopleSoft Applications Strategy Blog.

For information about PeopleTools see the PeopleSoft Technology Blog.


« December 2012 »