SCHOOLS FINANCE MANUAL

CHAPTER 20 Chapter: 20.0 Page: 1 of 14 Payroll Services Date: April 2013

20.0 PAYROLL SERVICES

20.1 Overview

Calculation and payment of salaries and wages in accordance with local and nationally agreed Conditions of Service;

Compliance with statutory and administrative regulations affecting pay including the interpretation and administration of Sickness, Maternity, Paternity and Adoption schemes;

Compliance with PAYE and maintenance of records to meet internal and external audit requirements;

Paying over of all third party disbursements with supporting documentation;

Provision of information to the Local Government Pension Scheme Administering Authority in respect of contributors salary, service and Contributions;

Guidance on PAYE Status to ensure employer liabilities are met; and

Response to enquiries and correspondence from staff, the employer and external agencies and organisations.

20.2 Description of the Service

20.2.1 The County Council will provide a payroll service in accordance with agreed arrangements in relation to processing schedules, pay period ends and pay days. The Payroll Section is responsible for carrying out all appropriate tasks necessary in accordance with existing statutes and regulations to process payments for School employees and deal with associated matters, including: -

Verification for accuracy / completeness / acceptability of weekly prelists, variations forms, monthly staff changes and absence returns for processing.

Checking of claim forms as received from the School for accuracy / completeness / acceptability for processing.

Clarification of amendments required prior to input and processing.

Inputting of figures from prelists and associated documentation to gross pay stage to the system.

“new starter” information to the system as supplied by the School including:

i. Apply the appropriate tax codes

ii. NI category

iii. Pension scheme percentage (dependent on fund - ees and ers)

iv. completion and determination of action required from the supplied P46s and initiation of other associated payment/deductions as instructed by the School and any other related tasks.

Termination of pay records upon employees leaving the School, ensuring that form P45 and other relevant documentation is issued.

Dealing with employee related queries in respect of pay entitlements as referred by the employee of the School or authorised third party such as HM Revenue and Customs.

Implementing pay awards and processing payments of arrears to current and former employees.

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CHAPTER 20 Chapter: 20.0 Page: 2 of 14 Payroll Services Date: April 2013

Taking steps to recover overpayments made to employees, to deal with third party claims and to respond to enquiries from building societies, solicitors, insurance companies and other authorised third parties about individual employees’ earnings and other details.

Checking that details held for individual employees relating to tax, NI and pensions deductions are complete and in accordance with the information supplied by the School or employee.

Applying tax codes and amendments thereto in accordance with instructions issued by HM Revenue & Customs and supplied by the School or as otherwise arranged.

Actioning NI changes in accordance with instructions issued by the HM Revenue & Customs or reducing liability/age exemption certificates received and supplied by the School.

Provision of written responses to external agencies in respect of bank/building society enquiries, state benefit applications and insurance claims.

Undertake calculations of Statutory Sick Pay and Occupational Sick Pay, Statutory Maternity/Paternity Pay and Contractual Maternity/Paternity Pay. All entitlements in accordance with details received from the School or employee direct and input to the system for processing, including maintenance of appropriate records for reference purposes.

Inputting data from claims and other appropriate documents to the computerised payroll system allowing calculation of various pre-defined rates.

Apply all statutory regulations including court orders, SSP, SMP etc.

Production of payslips for employees paid each period, paper copy or held electronically.

Correction of errors as notified by the School including the reproduction of payslips where amendments have been necessary.

Balancing and control of outputs in relation to statutory procedures.

Production of costing information in accordance with specific agreed procedures.

Maintaining all relevant records required relating to P35s and production of P60 substitutes at year-end.

Provision of all year-end routines and notification to appropriate bodies in accordance with current statutes.

Maintaining current certificates of reduced liability and age exemption in relation to NI and providing relevant certification for leavers (providing initial provision from the School).

20.3 Tasks Required to be Undertaken by the School

20.3.1 The School is responsible for carrying out all appropriate tasks necessary to provide the Payroll Section with information required to process payments and to confirm its actions, including:-

Prepare and authorise prelists, timesheets, monthly paid staff changes, absence returns and associated documentation then pass to Payroll Section in accordance with agreed processing timetables.

Ensure all data submitted quotes a valid employee reference number unless it is for a new starter.

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CHAPTER 20 Chapter: 20.0 Page: 3 of 14 Payroll Services Date: April 2013

i. Full employee details, name, full address, date of birth, NI

number, appropriately completed P46s, P45s, NI cards (where appropriate) and other associated information as necessitated.

ii. It should be noted that the current arrangements for informing Human Resources of “new starters” will continue, unless schools carry out their own data entry under RAS (formerly known as Devolved Access to Schools).

Notification of any unauthorised absences.

Submission of notifications of changes to an employee’s tax status as supplied by HM Revenue and Customs (HMRC).

Notification of changes to employee details, including changes of NI rate (instructed by HMRC), amendments to NI numbers and all other relevant details.

Verification for accuracy of employees’ pay and notification to Payroll Section in accordance with agreed timetables, including notification of errors where appropriate.

20.4 Service Standards

20.4.1 The Payroll Service aims to be a high quality service that is fully responsive to the needs of its customers. This is achieved by:-

working closely with headteacher representatives via the Traded Services Panel;

undertaking regular customer care surveys and responding to the issues raised;

having rigorous appraisal and monitoring arrangements for all staff within the Payroll Team;

the production of an annual service plan incorporating key priorities for the service;

the production of an annual report which is considered by the Traded Services Panel;

working with other traded services to ensure that there is a consistency in the documents produced for schools by all of the services e.g. Service Level Agreements, Annual Reports, etc; and

holding regular Team Meetings and Briefing Sessions for all staff to ensure that all Team Members are fully appraised of latest developments.

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20.5 Documentation

20.5.1 Examples of documentation required in the Payroll Section with regards to payroll adjustments are shown in the Appendices to this Chapter. Whilst completion of these documents should be relatively straightforward, guidance notes are included for some forms. Any further information required relating to form completion can be obtained from your payroll contact. See the Chapter 1: Contacts.

Weekly MSA Prelist Appendix 1

Overtime/ Additional Hours (SAL7) Appendix 2

Absence Return Appendix 3

Supply / Relief Claim Form Appendix 4

Children & Young People’s Service Claim Form Appendix 5

Variation of Normal Hours Form Appendix 6

Appendix 1 Weekly MSA Prelist

Appendix 2 SAL 7: Overtime / Additional Hours

Appendix 3 Absence Return

Appendix 4a Supply Claim Form

Appendix 4b Supply Claim Form: Notes

Appendix 5a CYPS Claim Form

Appendix 5b CYPS Claim Form: Guidance

Appendix 5c CYPS Claim Form: Guidance

Post Number

Post Title Old rate

Pay Element

Element Description Subjective Code

EDC005 Admin Support 6 1618 Scale 1 1100 7 1620 Scale 2 1100

EDC011 Youth Worker 13 1500 Youth Grade 1 22 1502 Youth Grade 1 + 5 years 14 1504 Youth Grade 2A 23 1506 Youth Grade 2A + 5 years 15 1508 Youth Grade 2B 24 1510 Youth Grade 2B + 5 years

1220 16 1512 Youth Grade 3A 25 1514 Youth Grade 3A + 5 years 17 1516 Youth Grade 3B 26 1518 Youth Grade 3B + 5 years 18 1520 Youth Grade 3C

27 1522 Youth Grade 3C + 5 years

EDC012 Adult Education Teacher 30 1524 Band 1 3A 33 1526 Band 1 3A + 5 years 36 1528 Band 1 3B 39 1530 Band 1 3B + 5 years 31 1532 Band 2 3A 34 1534 Band 2 3A + 5 years

1040 37 1536 Band 2 3B 40 1538 Band 2 3B + 5 years 32 1540 Band 3 3A 35 1542 Band 3 3A + 5 years 38 1544 Band 3 3B 41 1546 Band 3 3b + 5 years

EDC013 Music Centre 1 1548 Music Tuition 1040

EDC014 CYC Artist 42 1550 Fee 1220

EDC015 Other* 19+28 1552 Ancillary Youth 8 1554 Invigilator 11 1556 Model – Costumed

1100 12 1558 Model – Life 9 1560 Teachers Aid – Skilled 10 1562 Teachers Aid – Unskilled 99 1082 Evening Institute – Travel 2800 98 1564 Creche Worker 1100 98 1566 Advisory Service 1100

Note: If using old rate 6, quote pay element 1618 pt 11 If using old rate 7, quote pay element 1620 pt 13 * These payments are non-post specific so can be made against any post. The post “Other” is only to be used if the employee has no other posts.

Appendix 6a Variation of Normal Hours

VARIATION OF NORMAL HOURS

SCHOOL NAME :

Standard

hours / Employee Name Employee Number Post No Week Week Week Week Week TOTAL

Relief Ending Ending Ending Ending Ending VARIATION

post

indicator …./…/…. …./…/…. …./…/…. …./…/…. …../…/….. TO

® INPUT

Authorised by . . . . . . . . . . . . . . . . . . . . . . . .

Date . . . . . . . . . . . . . .

P = PLUS HOURS M = MINUS HOURS

Appendix 6b Variation of Normal Hours: Guidance

Letter from Payroll Manager

REVISED WEEKLY PRELISTS AND MONTHLY ABSENCE RETURNS

I am writing to let you know that the prelists that you normally receive on a weekly basis have been revised following the changes made to posts as a result of the Job Evaluation exercise.

You will now receive just one return (titled Weekly Prelist) to authorise and return each week in place of the current two (Weekly MSA and Education Weekly). This return will include only your weekly paid staff – not including those staff for which you make returns to Thirsk and Bedale, re Catering and Cleaning.

Please authorise and return the form to Payroll each week. If staff work hours different to those printed please write the hours worked in the comments column. Standard hours will be paid if there are no comments. If the School has a training day or enforced closure please note that on the prelist so that the reason for reporting reduced hours is clear.

The monthly paid staff that appeared on the old prelists will now appear on the monthly paid staff absence return. They will receive a full months salary automatically with variations to their standard hours paid one month in arrears, in line with GTA and ATA staff. A claim needs to be submitted each month for those staff with variations to their normal hours. Please use the new form, titled Variation of normal hours, a template of which is attached.

I’ve produced a mock return to show how it should look when completed. Please note if the additional hours are worked on a Saturday or Sunday (see J Jones) and if the employee is a relief, i.e. they have no standard hours (see K Moss).

I suggest you complete the form for whole weeks, ending on a Sunday. Therefore in some months you will have details for up to 4 weeks and sometimes 5 weeks.

Please do not tell me when these monthly paid people have not worked due to a School Training day or an enforced school closure or for any other occasion where you wish them to receive their normal pay.

If one of these members of staff is known to be leaving please let the Payroll Office know if there is a variation to deduct (see S Smith) before their final salary processes (on approx 15th of the month). It is preferable to make the deduction from that salary rather than have to raise an account or write off the overpayment, if it is a small sum.

As these members of staff now appear on the Monthly Paid Staff Absence return please list sickness detail for these staff on there, in the same way as you currently do for the Teaching and non-teaching staff that are already on the return.

Can I take this opportunity to remind you that all dates of sickness should be reported to me, including Saturdays and Sundays. Please also note that an employee can only self-certify for up to 7 consecutive and that they require certification over School holidays. Also, staff wishing to return before their sick note expires must obtain a fit to return note from their doctor before you let them work. Please make all your staff aware of these points as it is their responsibility to provide the appropriate medical certificates. Uncertified absence is effectively unauthorised unpaid leave and salary payment for such a period can be withheld.

If you have any query regarding any of the above please do not hesitate to contact the Payroll Office.