An enrolment record should be created prior to the employee's first payrun. Before completing the employee enrolment record you must first create the Employee record. If an Employee record doesn't already exist for your new starter, then create one: Payroll Administration > Payroll Records > Employees > New.
On the employee record we recommend entering the basic employee information including the address. For more information see the Employee Setup Guide.
Primary
Employee Details
Populate the employee personal details, the majority of these fields will already be populated from the selected employee record. Any changes you make will be copied back to the employee record after submission - see Update Employee Record.
You may need to complete:
The enrolment type depends on the documentation the employee has provided, and in some cases an employee may provide documentation after the enrolment has been submitted in a payrun FPS (see updating a submitted enrolment).
A P45 form is provided to an employee by their previous employer, it contains their tax code on the leaving date as well as the total pay and total tax at the previous employment for the tax year.
There are three P45 scenarios:
The only other requirement is to select the Present Circumstance from the Payroll Details section - go to this section to complete the enrolment record. This selection determines the declaration submitted in the first FPS, and defaults the tax code for the employee (20/21):
Present Circumstance | Tax Code | Explanation |
---|---|---|
A: This is my first job | 1250L | Default Tax Code Tax Year |
B: This is my only job | 1250L W1/M1 | Default Tax Code for Tax Year (W1/M1) |
C: I have another job or pension | BR | Tax will be applied at the basic rate |
Seconded Employee
If the employee has been seconded select New Starter Checklist
Mark the Seconded checkbox in the Employee Details section, this will disable and clear the Present Circumstance field and enable the New Starter (Expat) section.
Within the section you must select the Present Circumstance (Expat) and mark the two checkboxes (European Economic Area Citizen and EPM6SCHEME) if eligible.
Present Circumstance | Tax Code | Explanation |
---|---|---|
A: I intend to live in the UK for more than six months | 1250L | Default Tax Code Tax Year |
B: I intend to live in the UK for less than six months | 1250L W1/M1 | Default Tax Code for Tax Year (W1/M1) |
C: I will be working for the employer both inside and outside the UK, but will be living abroad | 1250L W1/M1 | Default Tax Code for Tax Year (W1/M1) |
No Declaration
If no P45 or New Starter Checklist has been provided, the employee's tax code will default to 0T W1/M1, which means the employee will receive no personal allowance, and will be taxed based on income in the pay period (rather than cumulatively for the tax year). No further fields are required.
The Payroll Details section sets the specific payroll details for this employee, allowing the override of business logic set fields*. All details in this section are copied back to the employee record Payroll and Tax Info tabs.
Field | Description |
---|---|
Student Loan Type | Specify the Student Loan Type (Plan Type 1 or Plan Type 2) - if the employee has both SLD Type 1 and 2 select SLD Type 1 |
Postgraduate Loan | Specify if there is a PGL Type 1 |
Present Circumstances | Available if New Starter Declaration is selected |
Tax Code (W1/M1) | Tax Code |
NINO | National Insurance Number (leave blank if not known) |
NINO Verify | Check to submit a Nino Verification Request after Creating the Enrolment Record |
NI Category | National Insurance Category |
Is Apprentice | Check if employee is an Apprentice used to default NI Category |
Works Number / Payroll Number | Payroll Number submitted in FPS |
SPA Effective Date | Statutory Pension Age Effective Date |
*If one of the fields used to derive a system set field is changed after overriding the value, the overridden value will be cleared. For example if Gender is changed after overriding the NI Category it will be returned to the default value
The statutory pension age is automatically set once the employee's gender and date of birth are set or changed. These fields are automatically populated based on the corresponding employee fields and will be copied back onto the employee record upon submit
The enrolment record defaults the employee's NI Category based on 4 fields:
Condition | NI Category | NI Description |
---|---|---|
Start Date > SPA Effective Date | C | Employees over the State Pension age |
If Age < 16 | X | Employee Under 16 Doesn't Pay National Insurance |
If Age < 21 | M | Employees Under 21 |
If Apprentice & Age < 25 | H | Apprentice under 25 |
If No Other Conditions Match | A | Default NI Category |
The system can only default the most common NI Categories you will need to override for other NI Categories such as B - Married women and windows entitled to pay reduced National Insurance. |
As outlined in previous sections, the tax code defaults from the documentation provided.
The business logic for setting tax code automates the HMRC provided business logic |
On submission the following actions occur:
The following table displays the enrolment fields that will be updated on the employee record.
Enrolment Field | Employee Field |
---|---|
Employee Details | |
Title | Salutation |
First Name | Name |
Middle Name | Name |
Surname | Name |
Start Date | HR > Hire Date |
Gender | HR > Personal > Gender |
Date of Birth | Birth Date |
Is Seconded? | Tax Info > Standard > Expat Indicator |
Payroll Details | |
Student Loan Type | Tax Info > Standard > Student Loan Type (and checks "has student loan") |
Tax Code | Tax Info > Standard > Tax Code (UK) |
W1 M1 | Tax Info > Standard > Tax on W1/M1 |
Nino | NI Number |
Ni Category | Ni Category Letter |
Works Number / Payroll Number | Payroll > System Set Fields > Payroll ID |
SPA Effective Date | Payroll > Pensions > UK State Pension Age Date |
It should be noted that address details are not updated back onto the employee record and are only used for the Nino Verification Request (if required). |
When a P45 for the current tax year (based on start date) has a non zero value for Previous Total Pay To Date or Previous Total Tax To Date, a Previous Employment Payslip will be created. This is used to ensure cumulative calculations for tax are correct and is also displayed on the P60 document generated at the end of the tax year.
The Previous Employment Payslip is a standard payslip that is not linked to payrun, and has the Previous Employment field (custrecord_pr_ps_previous_employment) checked and its Pay Date set to the leaving date from the P45 section. The Payslip is linked to both the Enrolment record and and the Last Payslip on the Employee record.
If you do not have an employee's NINO (National Insurance Number) you can submit a Nino Verification Request electronically from the Enrolment record. The verification process sends the employee's Name, Gender, Date of Birth, Works Number / Payroll Number and Address data to HMRC, which will use it to confirm the submitted NINO or provide the NINO.
To submit a NINO Verification Request perform the following:
For new starters if you have already received a tax code notification you do not need to update the enrolment record with the P45 information. |
If you have made a mistake on the Enrolment record, or an employee has provided new documentation, you can simply update the enrolment to reflect the new information.
As an example, Philipa Philipson first enrolled with a New Starter Declaration. A week later they receive a P45 from their previous job and provide it. To update, follow these steps: