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Ceridian payroll update
P.Simon Parsons M.Sc FIPPDip MBCS
Director of Payments, Benefits & Compliance Strategies
Today’s agendaCeridian payroll users interface update
Ceridian payroll engine updates
Tax year end errors!
Carter 2 / Ceridian Electronic Exchange
Payroll miscellaneous & HMRC extras
Ceridian payroll future
Q&A
Ceridian payroll user interfaceCeridian payroll engine ‘CentrePay’ constant
and active update
Active support (regular updates and enhancements with full future roadmap:
• HRevolution Payroll
• Ceridian Payroll Solution 1 (CPS1)
• Ceridian Pay-On-Demand
Ceridian payroll user interfaceModerate support products (updated but no
active enhancement)
• Ceridian Payroll Solution 2 (Source Payroll)
• FastPay
Ceridian payroll user interfacePassive support (no further updates will be applied and users
need to consider upgrade)
• PayPoint (1994)
• Microlink (1986)
• PP Paylink (1989)
• Other legacy
To benefit from new functional improvements in the user interface it is time to consider upgrading to the active supported Ceridian user interface products such as CPS 1
Ceridian payroll engine updates200606-A: 8th June 2006
• NINO trailing character compulsory
• Leaver date out of period (up to 2 months)
200608-C: 31st August 2006
• Flexible adds to earnings accumulators (+, -)
200610-A: 6th October 2006
• SMP Phase 1 – 39 week payment capability
• Reducing balance for pre-tax and pre-NICs deductions
Ceridian payroll engine updates200701-A: 11th January 2007
• SMP Phase 2 – Payment Saturdays (not Sundays), any day start, period based payments
200702-A: 1st February 2007
• Pension types, personal pension schemes, equivalent reduction for basic rate tax
• Misc data on P45 leaver (cost code or extra data for easier distribution)
Ceridian payroll engine updates200703-B: 15th March 2007
• New England / Wales council tax AEO tables
• New magistrate fine identifiers
200704-B: 27th April 2007
• Ceridian Electronic Exchange phase 5
• Budget 2007 and P45 negatives
200705-A: 31st May 2007
• SMP phase 3 - Alabaster
Tax year end 2006/2007 - errors Inconsistent tax!
• Tax is greater than tax gross on previous employer P45 values
NICs errors!
• Missing NI earnings amounts:
– Payroll adjustment– Share options– Class 1A
Incorrect tax references!
• HMRC no longer offer a verification service pre-submission
• Overall accuracy has been extremely high @98%
Carter 2
Carter 2 - compulsory in-year electronic filing Compulsory from April 2009 (others by 2013)
50=> employees in-year filing obligation or be subject to HMRC fines and penalties
• P45 for both starters and leavers
• P46 for starters
Ceridian Electronic Exchange: CPS 1, CPS 2 (Source Payroll), PayPoint
Inclusive extras in Ceridian Electronic Exchange:
• P9, P6B, P6 tax code updates
• CSL (collection of student loans)
• Pension messages: P46(PEN) / PENNOT
The important message Ceridian Electronic Exchange is “in-year
ready”
Over 2,500 current users
It does have an associated additional charge
You can take advantage of the benefit now – you don’t need to wait until 2009
P46 starter reminderEmployers who are not provided with a P45 for a starter are
obliged to issue and obtain a signed P46
Use the correct tax code!!!:
• Declaration A then use 522L cumulative
• Declaration B then use 522L week 1 / month 1
• Declaration C then use BR cumulative
Never use BR week 1 / month 1 for a P46 starter (ever)
No other tax codes are allowed for P46 starter cases
Pensions and C/O rebate changes• COSR employer rebate increased to 3.7% (from 3.5%)
• COMP employer rebate increased to 1.4% (from 1.0%)
Do you have and have you updated any COMP minimum funding schemes
So minimum funding scheme requirements are typically:
• EE 1.6% + ER 1.4% = 3.0% in total
Or
• EE 0% + ER 3.0% = 3.0% in total
No matter what, the total contribution must => 3% with the employer contribution being a new minimum of 1.4%
If contributions exceed these values then there may be no change!
Pension enhancementsCeridian payroll now polices pension setups more strictly with
regards to tax and NICs application
Personal pension schemes may be set to deduct amounts after having been reduced by the basic rate of tax
Common errors now eliminated with regards to:
• Net pay arrangement
• Contracted out salary related
• Contracted out money purchase
• Stakeholder pension schemes
• Personal pension scheme
Birth-date & gender (April 2008)Compulsory to record and report an employees birth-
date and gender for in-year HMRC forms
Birth-date of “01011901” should not be entered if not genuine?
HR processes and systems will need to ensure correct data capture
CIS ReminderCIS is not standard functionality within Ceridian payroll although
some customers may be using deduction facilities to enable the calculation
From 6th April 2007:
• 20%(known as net) for those registered for payment under deduction
• 30%(known as higher rate) for those not registered
If using Ceridian payroll to calculate CIS deduction values then you must ensure appropriate settings are maintained
Good Friday bug resolvedHMRC came to senses
New concessionary option where the payment would normally have fallen on weekend or bank holiday but is paid on the previous working day, the employer may (as a new option) treat the payment as if made on the regular pay day
So for payment due 6th April 2007 (Good Friday) but paid early on 5th April 2007, may be treated for statutory purposes as if paid on 6th
Other out of tax year schedules are not permitted such as a late March payment being treated as paid in the new tax year!!!
Resolves all future circumstances
Ceridian payroll futureFlexible payroll processing
• Ready to run
• Part trials
• Off-schedule payments
CSV input data reports
Ceridian On-line Reporting (COR)
Payroll On Demand
Ceridian Electronic Exchange
Ceridian CCVs
Your [email protected]
CERIDIAN Exchange Tower 2 Harbour Exchange Square London E14 9GE Tel: 0800 733 337 Fax: 020 7335 3636 Web: www.ceridian.co.uk Email: [email protected]
© 2006 Ceridian Corporation. All rights reserved.
