Payroll Checklist Employees Adding a New Employee Required Information To add a new employee you need the following employee's information first.  This information can either be found in the employee's new start form or in their contract. Field Example Title Mr First Name Joe Surname (Last Name) Bloggs Personal Email Address joe.bloggs@gmail.com Date of Birth 22/05/1986 National Insurance Number AB123456C Gender Male Home Address 123 A Random Street, Glasgow, G1 8RY. Scotland Off-Payroll Worker No* Start Date 01/05/2022 Contract Type Hourly or Salaried Pay Rate Salaried Example - £24,000 Per Year Hourly Example - £10.50 Per Hour Number of Hours Per Week 40 Hours Pay Frequency Weekly, Monthly, Fortnightly etc (default is Monthly) Has Private Pension? No** Job Title Professional Guy Phone Number 07712341234 Emergency Contact Name: Jane BlogsPhone Number: 01236 712345 P45 If the employee has one No Does Employee have a student loan to pay off? If yes...Plan Type, Start date and End date are required *An Off-Payroll Worker is usually a contractor paid by invoice, we do not use payroll to manage contractors. **Private Pensions - By default our system use Nest as our Pension supplier, employees have the option of us paying directly into their own private pension.  This will usually be described in the employees contract. Process for Adding a New Employee Employee Details Screen From the top navigation menu go to "Payroll > Employees" From the Employees Screen click "Add Employee > Add New" Fill in the Start Form from the collected information in the Required Information step You will then be show an incomplete Employee On the employees Details screenEnter the employee's Personal Email Address Check the box for Invite to My Payroll Enter the Employee's Job Title Enter the Employees Phone Number Click on Add Emergency Contact Enter the emergency contact information (Name and Phone Number is enough) Click "Save & Next" Employee Employee Screen Steps... Enter the Fields as below... Enter the Salary and Wages Click "Save and Next" Fields Employee Number This needs to be a unique number, pick the next number from the Employees Screene.g. in the example below it would be 95 Employment Start Date The date the employee started.  Fill this in from the details collected in Required Information Payroll Calendar This is how often we pay the employee, as standard it is paid Monthly Paid Intermittently Their pay is intermittent e.g. long term sick or 0 hour contract Holiday Group Leave this as None Employee Group Leave this as None National Insurance Number Fill this in from the details collected in Required Information NI Category This should be NI category A unless the employee has let us know otherwise Filled in Example Salary and Wages Click "Change Salary and Wages" Enter "Regular Hours" as the earnings type Choose whether they are Annual (Salaried) or Hourly paid - as in Required Information Enter their hourly or salaried wage - as in Required Information Enter the number of hours they work per week - as in Required Information Enter the employee start date - as in Required Information Click "Confirm" Example Filled in... Taxes There are two methods for setting up an employees Tax, with or without a P45 Steps... Employee has a P45 Starter declaration a) First job in this tax year b) Currently only working in this job (not their first job in this tax year) c) They are working more than one job Tax Code Match tax code with p45 Previous taxable pay From the p45 copy over the previous taxable pay and previous tax paid (BOX 7 on P45) Employee does not have a P45 Starter declaration a) First job in this tax year b) Currently only working in this job (not their first job in this tax year) c) They are working more than one job Tax Code Let the default tax code entered automatically by xero do the work [OPTIONAL] Student Loans To add a student loan... Student Load Type Collected in required information Start date Collected in required information End date Collected in required information Once all tax information is completed click "Save and Next" Pension Employees are given the option to pay into the company pension scheme, our is run by Nest but if employees have a private pension they can pay directly into that. If a employee has a private pension Ask Robert If an employee is using auto-enrolment (Nest) Click "Needs to be assessed for auto enrolment" Click "Save" Click "Looks Good" Set up Time Off (Holidays) On the time off screen For 2022 Only - You need to calculate the total allowance for the year and then deduct off the allowance between 01/01/2022 and 01/04/2022 Calculate the number of holidays in hours an employee has All employees are entitled to 5.6 weeks of holidays a year including bank holidays In days this is 28 days In hours this is 224 hours Or 0.1076923076923077 hours per hour worked OUR HOLIDAY YEAR RUNS JANUARY TO DECEMBER NOT APRIL TO APRIL To calculate the number of hours a new start has for a full year. 224 hours - business holidays in hours = allowance To calculate the number of hours a new start starting part way through a year Use the allowance calculator provided by uk gov - Calculate holiday entitlement - GOV.UK (www.gov.uk) AMOUNT PROVIDED BY GOV WEBSITE - BUSINESS HOLIDAYS IN HOURS = ALLOWANCE e.g Employee starts on 1st of May, works 40 hours per week152 Hours How many company holidays are left between 1st of May and 31st December 2022? You can view this on the holiday calendar here: Matic Media Holiday Calendar June Jubliee Bank Holiday (2 days - 8 hours x 2 = 16 hours) December 25th - 31th (5 days - 8 hours x 5 = 40 hours) Total business holidays - 56 hours How many holidays left? 152 hours - 56 hours = 96 hours How to apply hours... Click assign time off Fill in the form as below and enter in the calculated number of holidays. Making an Employee a Leaver AN EMPLOYEE SHOULD ONLY BE MADE A LEAVER AFTER THEIR FINAL PAY RUN IS COMPLETED. LEAVER PAY RUNS SHOULD BE DOWN IN SEPARATE PAY RUNS HOLIDAYS REMAINING CAN BE A NEGATIVE, IN THIS CASE THEY SHOULD BE A DEDUCTION - EXACTLY THE SAME PROCESS, EXCEPT NEGATIVE HOURS FOR 2022 LEAVERS AN ADDITIONAL 55.3HOURS MUST BE DEDUCTED OFF THE ALLOWANCE Steps to ending an employee's employment in Xero... Calculate the number of holidays an Employee has left Ask Richard or Robert about any outstanding deductions an employee has Do a Pay Run for only the leaver When doing the Pay Run add the Holidays Left (or Deduct over holiday allocation) Any other deductions End the employee's employment Generate the employee's P45 Calculate the number of holidays an employee has left Steps... Use GOV website use the calculator to find out the number of holidays the employee is due for the period they have worked of the holiday year Total the holidays an employee has used in the holiday year Deduct the total holidays from the remaining holiday allowance Use GOV website use the calculator to find out the number of holidays the employee is due for the period they have worked of the holiday year Using the calculator at Calculate holiday entitlement - GOV.UK (www.gov.uk) enter the following information Year Start Date - This is always the first of January Employee Start Date (if within this holiday year) Employee Leave Date Employee Hours Per Week Employee Days Per Week The calculator will tell you the number of hours the employee is entitled to. Total the holidays an employee has used in the holiday year Total any holidays the employee has had in this from the entitled to calculation.  You can get a total calculation from the employee's screen and the "Time Off" section. Add up all the hours in the time off section up to the point of the employee's end date. In the example below the employee has had 20 hours total paid Holiday(In this example the employee's last date is the 1st of June 2022) Remember to add on business holidays to this amount, they are not automatically added to this list Deduct the total holidays from the remaining holiday allowance Equation to be used: Total remaining holidays to be paid = Remaining allowance = holidays used Example in use Leaver started in 2011, leaving on the 1st of June 2022. Leaver Start Date 01/02/2011 Leaver End Date 01/05/2022 Holiday Allowance (Using Calculator) 93.3 Holidays Allowance Used 20 Business Holidays Used 16 Total Allowance Used 36 Holidays Remaining 57.3 = round up to nearest hour = 58 End the employee's employment After finishing the Changing an Employee Wage / Hourly Rate Step 1: Go to Employee's Screen Select the employee... Step 2: Go to Employee's Employment Screen Step 3: Select "Change salary and wages" Step 4: Enter new pay rate and the start date from which the new pay rate begins Step 5: Repeat step 4 for additional pay rates (Overtime, Nightshift allowance, etc)Setting an Employee's Holidays Pay Run What is a Pay Run? Creating a Pay Run Process for Creating a Pay Run Go to "Payroll > Pay employees" Select whether the pay run is either: A standard pay run (Monthly pay run, runs on the 27th) Unscheduled pay run (can be run anytime e.g. leaver pay run) Then click "Process Pay Run" Enter the date the employees are to be paid You can add a message to be written on the payslips here Select the employees to be included in the pay run Unscheduled Pay Runs When you select an unscheduled pay run, you have to select the tax year and the pay period that the unscheduled pay run is relevant. Adding Holidays EMPLOYEE HOLIDAYS MUST BE ADDED BEFORE A PAY RUN IS STARTED, UNLESS BEING MANUALLY ADDED. Adding Holidays via the Employee Time Off Screen Adding Holidays as a Pay Run Line This technique should only be used as an amendment to a payslip as they are not automatically deducted off an employee's holiday allowance. On the payslip screen... Enter the number of hours and the rate per hour to pay at Adding Overtime To add Overtime is done from the employee payslip screen Overtime is paid at time and a half (1.5 x standard hourly rate) Click "Add" and Select "Overtime" Enter the number of hours in the box Adding Sick Days Adding Deductions Paying via BACs To start the payment run.... Go to the pay run for the month you want to process Click on the pay run you want to pay Click on "Options" then "Download Bank Payment File" Select "BACS File" Click Download The file will be downloaded to your Downloads folder Copy the file to the Financials Folder on Nethdd\\192.168.0.10\nethdd\Staff Folder\Richard\Richard backup\Popcorn\Popcorn\Accounts\Financials\Payroll Reports\[[ENTER FINANCIAL YEAR HERE]]\[[ENTER MONTH HERE]] Rename the Downloaded Bacs File to the month and financial year e.g. May-22-PAYROLL File after being renamed should look like below.... Go to BANKLINE Login as per usual Click on "Payments" > "Import Payments" Click "Choose FIle" Navigate to the folder from step 7 and select the copied BACs file Press "GO" You should see a screen like below, with the number of payments imported as 1IT IS VERY IMPORTANT THAT IS SHOWS THE NUMBER OF IMPORTS AS 1 Click "Accept Import" Go to Payments and Approve Payments from the navigation menu If the Raised payment screen shows no payments awaiting approval then go to Raised payment shows no payments awaiting approval otherwise continue on to step 20. The below value Should match this value in xero (on the payrun) Double check the pay datesThe value below should be on or before the 27th of the month If the date is not correct follow: Date is not the correct payment date Approve the payment as usual Transfer enough money to cover wages into reserve accountFrom 2849 to 6944 (round up to nearest £1,000)DON'T BLOODY FORGET TO DO THIS Setup the HMRC Payment Setup HMRC Payment Go to Payroll > Taxes & Filings Take this figure here from the month submission: Go to BANKLINE Go to Payments > Make a payment or transfer Select make a payment from a template Select HMRC CUMBERNAULD Select "Make Payment" The payment date should be on or before the 16th of the Month i.e. the first working day before the 16th if it falls on a bank holiday or weekend. Take the amount from Step 2 and past it into the amount box Click "Raise Payment" Approve the payment as normalDON'T BLOODY FORGET TO TRANSFER MONEY INTO THE RESERVES ACCOUNT Date is not the correct payment date Go to Payments > Imports Click on the import Click on the import on "Awaiting Authorisation" Click the payment ref Click edit payment details Change the date to the date you want the money to arrive in employee's bank account Click confirm changes Either click "Confirm payment" Approve the payment as usual Raised payment shows no payments awaiting approval If the raised payment screen looks like below.... 1. Go to your imports -  Payments > Import Payments 2. Click the file you imported from Step 17 in the above steps 3. Under the incomplete row should show one incomplete payment 4. Click the "1" in the image above5. Select the Payment ref 6. You will see one or more errors 7. Click on the error to see the problem 8. FIX THE ERROR IN XERO AND RESTART THE IMPORT PROCESS FROM STEP 1 (YOU NEED TO RENAMED THE IMPORT FILE) 9. DON'T FORGET TO CANCEL THE IMPORT AS BELOW Then Generating NEST Pension File Posting Pay Run & Sending Payslips Posting the Pay Run After making all your payslip changes you can post the pay run by clicking "Post Run" Viewing Payslips Before a pay run is posted After a pay run is posted Sending Payslips On the next screen, select who you want to send the payslips too and click "Email Payslips" Adding Bonus's / Extra Payments On the Employee Payslip Screen... Click "Add" and "Bonus" Enter the amount in pounds of the bonus Click "Save" Adding Expenses Paying National Insurance & Tax Living Wage / National Minimum Wage Changes (April/May)