Tuesday Mar 04, 2014

Legislative Update for PeopleSoft HCM Global Payroll United Kingdom

An update on Direct Earnings Attachment

The Welfare Reform Act 2012, which became law in March 2012, allows Department for Works and Pensions Debt Management to ask the employer for making deductions directly from payee’s earnings. This is routed by asking employer to operate a Direct Earnings Attachment (DEA).These regulations are only in force in England, Scotland and Wales hereby excluding Northern Ireland.  DEA has its own regulations which follow some of the workings of a Deduction from Earnings Order (DEO) and some workings of an Attachment of Earnings Order (AEO), particularly a Council Tax Attachment of Earnings Order (CTAEO). DEA does not replace other orders and in some circumstances employers may receive requests to implement deductions for multiple orders for the same employee. The legislation covering DEAs, part of the Social Security (Overpayment and Recovery) Regulations 2013 came into force on 8th April 2013.

DWP has released necessary specification for an automated payroll solution which will be introduced effective April 2014. In order to ensure compliance with this legislative initiative Oracle has updated the position statement that is made available on My Oracle Support, Document ID 1631637.1.

Wednesday Mar 06, 2013

Legislative Updates for PeopleSoft HCM Global Payroll UK - RTI

Real Time Information for 13 - 14 Fiscal

HMRC have announced changes to some of the requirements for submissions from April 2013 and had published new versions of certain MIGs.  These updates has been integrated into the PeopleSoft application as part of RTI 13-14 MIG Specifications for various file generation like EAS, FPS, EPS and NVREQ. All PeopleSoft GP UK customers will be required to comply with the legislation changes and complete migration to Real Time Information by October 2013 as stipulated by HMRC. PeopleSoft GP UK provides these legislative changes to allow customers to start the migration process and for those customers chosen, take part in the pilot phase of the HMRC project.  Real Time Information will ultimately replace the End Of Year and In-Year Filing processes that currently exist and all employers in UK will be legally bound to be compliant by date specified of October 2013. Each year HMRC would publish changes required to the RTI process and this year is no different. This whitepaper outlines all the changes that have been introduced by HMRC for the tax year 2013-14 & how it has been incorporated in our PeopleSoft Global Payroll for UK. 

For detailed information please download our white paper published on My Oracle Support, Document ID 1534036.1."

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.

Tuesday Nov 27, 2012

Peoplesoft Global Payroll UK Legislative Update

Automatic Enrollment Pension

The government has introduced a new law to make it easier for people to save for their retirement.  It requires all employers to enroll their workers into a qualifying workplace scheme if they are not already in one.  At present, many workers fail to take up valuable pension benefits because they do not make an application to join their employer's scheme.  Automatic enrolment is meant to overcome this. Although automatic enrolment comes in from 1 October 2012, individual employers' duties will be introduced gradually over the following five years, and will be based on the employer's size.

The law on the new employer duties and safeguards will commence from July 2012. Each employer will be allocated a date from when the new duties will apply to them, known as their ‘staging date’. The staging dates will start from October 2012. This is the first step as an employer in getting ready for the new duties. One of these duties will place new requirements on employers to automatically enroll certain workers into a pension scheme. An employer should work back from their staging date to understand when they should start to take the actions as per guidance. It is each employer’s responsibility to identify their staging date and to work out when they must act to be ready for the new duties. The staging date is based on the number of people in the employer’s largest Pay As You Earn (PAYE) scheme.

Staging will start in October 2012 and will be rolled out based on the largest to smallest PAYE schemes. The Department for Work and Pensions (DWP) has announced that employers with fewer than 50 persons in their PAYE scheme will not be brought into the employer duties until June 2015 at the earliest. This means that the staging dates for many employers may change, although employers with 250 or more persons in their largest PAYE scheme will be unaffected and will be staged between October 2012 and February 2014.

Auto Enrollment Process that is delivered will perform the assessment of active employee based on eligibility criteria of age and earnings and if eligible they will be enrolled automatically to Qualifying Pension Scheme.  As part of system delivered functionality, it takes care of deduction from payroll, option to opt-in and opt-out of the payee and generation of reports.

For detailed information please download our white paper published on My Oracle Support,  Document ID 1504871.1.

Wednesday Oct 17, 2012

Legislative Updates for PeopleSoft Global Payroll UK

Changes to Child Maintenance DEOs

Effective October 2012 The Child Maintenance and Enforcement Commission introduced a new Deduction of Earnings Order where the protected earnings are a percentage of fixed pay as opposed to a set amount under the existing system.  Employers will be required to submit a different schedule of payments and there will also be a new payment method. When the new system starts, there will be a clear dividing line between the employer stopping an existing DEO and starting a new one for an individual. It will not be continuous so there should be no pay period where both old and new DEOs are paid at the same time. It is expected that by 2015 there will only be one single system of child maintenance in place.

Our Position Statement has been updated. 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 1498181.1.”

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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.

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