SAP GB Payroll

1. SAPGB Payroll Adrian Miners adrian@nicx.co.uk http://www.nicx.co.uk/page13.php

2. SuccessFactors & SAP HCM

3. Payroll with SuccessFactors SAP ERP SuccessFactors ESS / MSS Time Recording Payroll Organisation Management Personnel Administration PC_PAYRESULT PA30 PT_CLSTB1/2 OOQA / LSO_PVCT / PPOME Payslip Data Replication PI/XI Data Replication Dell Boomi Government Gateway

4. What data is required? • Payroll Data • Who is going to input it? • Employee/Manager/HR/Payroll Department/Interface/3rd Party? • Which Screens are being used? • Employee Central/PA30/PA40/PA70/PA71/LSMW/Interfaces • Which Infotypes will be used? • See the list below Data Entry

5. What Data is required? Interfaces

6. What Data is required? Infotypes Who is going to input it?

7. What Data is required? Infotypes Who is going to input it?

8. What Data is required? • IT0002 Personal Details: An additional filed ‘National Insurance (NI) Number’ field has been added for GB. The given field is used to store NI no for an employee, which is automatically transferred to IT 0069. The NI no cannot be changed or altered in IT 0069 but has to be updated via IT 0002. There is another UK specific field, which the standard screen 2044 doesn't show, but screen 2008 (usually used for applicants in the UK) does. It's the field "sexual orientation", which is stored in Infotype 3346 (same way as working time directive fields from 0016 are stored in 0280). • 0016 Contract Elements: It has been amended to store beneficial loans and working time directive for the employees. The calculation method indicator in beneficial loans indicate the method of calculation (average or precise calculation method) to be used while calculating tax benefit that an employee uses on receiving an interest-free or cheap loan (beneficial loan) from an employer. If the WTD indicator is opted out, it indicates the employee has agreed to work more than the stipulated 48-hour average weekly limit. A special note on working time directive fields in IT0016: Whilst they are displayed in IT0016, they are actually stored in IT0280. Whilst 0280 cannot be processed directly in PA30/PA20, it is important to know, where you find these fields, e.g., when creating an ad-hoc query or writing a custom report. The data is in database table PA0280, not PA0016.

9. What Data is required? • 0045 Loan: o Two additional fields have been added: Loan category, MIRAS indicator • Loan category field is used to specify the kind of loan that the user has taken, while MIRAS indicator is used to specify whether the loan was eligible under MIRAS scheme (mortgage interest relief at source) or not. However, MIRAS scheme was withdrawn post April 6, 2000 and hence, this indicator needs to be left unchecked

10. Infotype 0065: Tax Details http://wiki.scn.sap.com/wiki/display/ERPHCM/Tax+Calculation+for+UK+Payroll Note 2086678 (SP 81/B5) allows for the ‘M’ and ‘N’ tax codes. This is for the transferable tax allowance for married couples announced on December 5th 2013

12. Infotype 0069: National Insurance If no details are stored, the system uses the default values set up during payroll customization, using the feature GNICD. Note 2092992 (SP 81/B5) supports the Abolition of ER NI for EE’s under 21 years of age.

13. Note 2092992 (SP 81/B5) supports the Abolition of ER NI for EE’s under 21 years of age.

14. Infotype 0070: Court Orders http://wiki.scn.sap.com/wiki/pages/viewpage.action?pageId=298550016 Tracking Court Order Payments The report HR-GB: Court Orders Report for Great Britain (RPLCORG0) also provides a reference number with each corresponding court order payment. The report Preliminary DME program for wage and salary payments (RPCDTAG0) reads the court order reference number from payroll results and updates it in the table Settlement data from payment program(REGUH). The financial application program Payment Medium Great Britain and Ireland - BACWAY, BACSBOX, EFTS, EMTS(RFFOGB_T) then reads the value of court order reference number from table REGUH and processes it with court order payments.

16. Infotype 0088: SMP/SAP/SPP/ShMP/ShPP Shared Parental Leave: ShPP or ShMP subtype in IT0088. See OSS note  2125847 and 2133777

17. All employee information relevant to SMP/SAP/SPP/ShPP/ShMP evaluation needs to be recorded in the Infotype 0088. The Infotype provides the Payroll component with the information it requires to evaluate the employee's maternity, adoption or paternity leave data, and therefore calculate the correct payments during the payroll run. The Payroll component also uses the information to update the Absence Calendar. • All information required by the Payroll component for evaluation is stored in the following Infotype records: • SMP/SAP/SPP GB (Infotype 0088) • SSP/SMP/SAP/SPP Exclusions (Infotype 0086) • Absences (Infotype 2001)

19. Absence ProcessingInfotype 0088 & 2001

20. Statutory Absences Absence Processing: Infotype 2001

21. Absences (Infotype 2001): National Features Great Britain • A number of additional features are provided on the Absences (2001) Infotype for Great Britain and Ireland for OSP/OMP processing using screen 2008. These are as follows: • Absence entry check • The system checks the consistency of the employee's master data and absence scheme customizing. • When an absence is entered using the Absences (2001) Infotype, the following information is available: • The absence scheme that the employee is in on the first day of the absence • The amount of entitlements left on the first day of the absence • How the absence will be broken down for payment Absence Processing

22. Backdated changes to the Pension Funds (Infotype 0071) record do trigger retrocalculation.

24. Infotype 0442: Company Car

25. The main purpose of this record is to provide the payroll and the P11D report Summary of Taxable Benefits for End-of-Year Reporting Great Britain (RPCP11G0) with information for Class 1A National Insurance contribution (NICs) calculation. To calculate the car benefit, the system requires the following information: 1. A valid make and model of the car. 2. The CO2 emissions have been maintained for each make and model. 3. Periods for which the car is unavailable for use. 4. Payments made for private use. The system calculates the car benefit as a percentage of the car price. This percentage is set according to the level CO2 emissions for the car. The system then makes the appropriate unavailability and calculates employee contributions.

26. Infotype 0793 I am not sure whether this has been superseded completely by 0874.

27. Predetermination PAYE and NIC Adjustment (Infotype 0874) Definition: This infotype stores the following information: Tax and NIC amount adjustments, Reason for the adjustment Use: In case of any discrepancy between the actual tax and NIC amount payable, and the amount that the system calculates for the employee, you must manually calculate the difference amount and enter the same here. The system uses the information in this infotype to adjust the tax amount, and employee and employer NIC contribution amounts. Structure: In the Predetermination PAYE and NIC Adjus section: The NI number is defaulted. Enter the date that falls in the period in which you want to adjust the amount in the Adjustment Date field. In the Tax Adjustment section: Enter the adjustment amount, which is the difference between the actual tax amount and the amount that the system calculates. In Reason for Adjustment section, give a detailed description of why you are adjusting the amount. In the NIC Adjustment section: Enter the adjustment amount in the EE NIC Adj. Amount field, which is the difference between the employee’s actual contribution to NIC amount and the amount that the system calculates. Enter the adjustment amount in the ER NIC Adj. Amount field, which is the difference between the employer’s actual contribution to NIC amount and the amount that the system calculates. In Reason for Adjustment section give a detailed description of why you are adjusting the amount.

28. Integration: Predetermination TAX & NIC Adjustment payroll function (P0874) reads the information in this Infotype to generate the values of the following adjustment wage types: • Tax Adjustment wage type (/5TA) • EE NIC Adjustment wage type (/3N1) • ER NIC Adjustment wage type (/3N2) • The National Insurance Great Britain User Adjustments payroll function (GBNIA) reads the values of these wage types to adjust the following values: • Tax paid wage type (/501) • Employee NIC wage type (/301) • Employer NIC wage type (/302)

29. 0570 Offshore Tax GB • Stores tax data for resident and non-resident employees working in the Isle of Man, Jersey, or Guernsey and Alderney. • 0571 Offshore Social Security GB • Stores employee's social security details for resident and non-resident employees working in Jersey or Guernsey and Alderney. • For Isle of Man, IT 0069 is used to store social security contributions as it has the same National Insurance System as that of GB. • 0757 Tax Credit GB : It is used to store employee’s Working Tax Credit (WTC) details. WTC is payment given by the government to provide financial help to the employees who are in low-income households, whether they have children or not. It is non-taxable payment given to the employees for a specific period and is added to the net pay.

30. Communicate Cut-off SIMULATE Employee Central? Correction to input file

31. Audit log: Starters / Leavers / Pay Changes / Etc. • The Payroll Log: Errors / Messages • Exception Reporting • GRET Schema • Employee Central / Boomi Logs • Check uploaded files • Pensions Auto-enrolment • Wagetype Reporter • PC_PAYRESULT • Payroll Account • Payroll Journal • Simulate: • Finance Interface • Payment File • Pensions Interface • Payslip • FPS • Court Orders

32. Subsequent Activities Create BACS (employee / clubs / charities / Etc.) Create Pensions File Transfer to Finance FPS On Demand Payroll / Advance Payments / Infotype 0011: External Payments Etc

33. GB Payroll Schema GB Schema

34. Absence Processing Schema Functions Figure 42: Function RAB Function RAB – Read Absences Function RAB imports the absence records from the Absences Infotype (2001) to the internal table AB for use in payroll. All absences in the period are read and assigned to work centre (WPBP) split indicators. The absence valuation rule for the absence is read from the Attendance and Absence Types table (T554S), and is used to group the different absences in payroll.

35. Absence Processing Schema Functions Figure 43: Function GPNAB Function GPNAB – Process OSP and OMP absences GPNAB is an amended copy of the International Payroll Function XNAB. The international development for Absence Evaluation processing during payroll (XNAB) was previously unable to handle Part Day absences and Data Take On issues that implied a GB copy of XNAB was necessary for Absence Evaluation processing during the GB payroll (GPNAB). The new developments for XNAB (OSS Note 456768) have taken account of all the GB requirements. This implies that all the copied code can be removed and GB can return to the international standard (XNAB).

36. Absence Processing Schema Functions Figure 44: Function PAB Function PAB – Process Absences The internal table AB is processed one record at a time, to determine absence hours and days, and evaluate the absences according to the specifications in table T554C. Finally, the special processing cycle specified in table T554C is carried out.

37. Absence Processing Schema Functions Figure 45: Function GBSXP Function GBSXP – Process Statutory Absences Payroll function GBSXP processes all statutory absences in Payroll for Great Britain. It is based on the principle that all statutory absences are processed in the same way. Where an employee is eligible to receive Statutory Sick Pay (SSP), Statutory Maternity Pay (SMP), Statutory Adoption Pay (SAP) or Statutory Paternity Pay (SPP), the processing of these absences is controlled by payroll function GBSXP.

38. Pensions Functions Figure 46: Function GPENS Function GPENS - Pension Fund Calculation This function is necessary when calculating the pension fund contributions to be paid by both employee and employer in a particular pay period. The processing can be for multiple pension funds. The function makes use of the Pension Funds Infotype (0071) as well as the cluster tables PENS and IT. Function P0071 (found in schema GBD0) reads the Pension Infotype, and puts the result in PENS, for later processing with GPENS.

39. Tax Functions Function GTAX – Tax Calculation This function is necessary when calculating the tax to be paid by an employee in a particular pay period. The function makes use of the Tax Data (0065) Infotype as well as the Tax table (ST) and gross payroll data (IT). It adds the relevant tax wage types to the IT table after processing. There are 2 possible values for the parameter Par1 for function GTAX: Blank or 'LATE'. The function should be called in the schema with Par1 set to 'LATE' only for the case that tax calculation needs to be recovered for a late leaver. An example of this can be found in the schema GRET.

40. National Insurance Functions Function GBNIC – National Insurance Calculation This function calculates the relevant National Insurance amounts, and fills various payroll cluster tables, as well as adding NI wage types to the IT table. The specific NI tables that are populated are:- NIPAY NI-able Pay NIC NI Contributions for current period CNIC Cumulated NI Contributions NIRA NI Refunds/ Arrears In order to define NI-able pay, using Cumulation class ’31’, the function has to be called with PCR G302 as parameter 2.

41. Occupational Absences Example A: Company Sickness Absence Rule “An employee is entitled to three weeks full sick pay after 2 years of service” An employees entitlement can be based upon their number of years of service (Seniority). The full business rules might look like this:- ServiceEntitlement Up to 6 months No Company Sick Pay (only SSP paid) 6 up to 12 months 1 week Full Sick Pay (100%) (OSP) 12 up to 24 months 2 weeks Full Sick Pay (100%) (OSP) 24+ months 3 weeks Full Sick Pay (100%) (OSP) Example B: Company Maternity Absence Rule “An employee is entitled to Company Maternity pay after 1.5 years of service” In this case, if service is less than 1.5 years, then no Company Maternity pay is paid, ServiceEntitlement Up to 18 months No Company Maternity Pay (only SMP paid) 18+ months 6 wks @ Full Pay (100%) (OMP) 8 wks @ 70% Pay (OMP) 12 wks @ 50% Pay (OMP) 13 wks @ 30% Pay (OMP)

42. Wage Types

43. Wage Types

44. Cluster RG

45. Cluster RG

46. Statutory Reporting Forms P6 – If the tax code of one of your employees changes at any time during the tax year, HMRC will send you this form (as the employer).(RTI) P9 – As the employer, HMRC will send a P9 if an employee’s tax code is due to change from the start of the following tax year. (RTI) P9d - This form is used to show the taxable value of expenses and benefits provided to non-directors who are employed by your business, and have earned less than £8,500 in the year. P9X -This guidance explains which tax codes employers must change and how to change them and which codes to carry forward ready for the new tax year on 6 April. P11D – This form shows the taxable value of all expenses and benefits provided to employees who have earned £8,500 or more during the tax year (and all directors if you run a limited company). All P11D forms should be submitted to HMRC by 6th July, and you must provide a copy to all relevant employees. P11DB - Report Class 1A National Insurance contributions due on expenses and benefits

47. Statutory Reporting P14 – The P14, an End of year summary showing totals of individuals pay, tax, NIC and any SAP/SMP/OSPP/ASPP and SSP payments made and recovered during the tax year was also abolished following the introduction of RTI. Like the P35 and P38A, from 2013/2014 tax year onwards, there is no requirement for this form P35 – To be completed by 19th May each year, the employers’ annual return details how much income tax and NICs have been deducted for each employee during the course of the previous tax year. Like the P14 from 2013/2014 tax year onwards, there is no requirement for this form The P38A - an Employers return that detailed Employees who were paid over £100 in total for the tax year but for whom a deductions working sheet (P11) was not completed or who were not entered onto form P35, was also abolished following the introduction of RTI. Like the P14 from 2013/2014 tax year onwards, there is no requirement for this form P45 - Issued on termination of employment. It is a summary of tax and NI contributions paid. It is given to the employee to give to their new employer. Hardcopies of P45 will be issued to employees, but the submission to HMRC will no longer will be required. P46 - Used when a P45 has been lost or not issued. (RTI replaces it) P60 – A certificate to be provided to all employees at the end of each tax year, it details the total income tax and NIC deductions made during the year. You must issue all employees with a P60 by 31st MayP71

48. Real Time Information (RTI) RTI Operational Changes for Employers • http://www.nicx.co.uk/attachments/File/RTI_Userguide_V11.pdf • Employers and pension providers send details of all payments made through the payroll irrespective of the amount of pay or pension. • Under RTI employers will not have to complete a P46 form and send it to HMRC. They need to obtain the P46 information from the employee instead and use it to complete the starter information, which will be sent as part of the RTI payment submission together with details of the employee's first payment, when the payroll is run. • Employers and pension providers will not need to complete an end of year return (P35 and P14) or P38A supplementary return, as the SAP system tells HMRC about all payments made each time their payroll is run. • Hardcopies of P45 will be issued to employees, but the submission to HMRC will no longer will be required. • At the end of the tax year employers and pension providers will be expected to: • indicate on their last payment submission on or before the 5 April that this is the final RTI submission for the tax year • provide each employee and pensioner with a form P60 • complete and file any forms P11D and P11D(b) due under the existing PAYE arrangements

49. Real Time Information (RTI)

50. Real Time Information (RTI) BASS = Bacs Approved Software Supplier