Your Payroll Questions Answered - Employer Payment Summary

Peninsula Team

August 06 2013

Your Payroll Questions Answered Q          When would I send an Employer Payment Summary (EPS)? A          When you need to reduce the amount of PAYE and NIC’s payable to HMRC when recovering
  • Statutory Payments
  • Construction Industry Scheme deductions (CIS)
  • NIC Holiday
Q          What should I do if I have no payments to send through RTI? A         If no employees are due to be paid in the tax month you must let HMRC know by sending an employer payment summary (EPS) - the deadline to submit the EPS is the 19th of the following month. If you expect that you will not be making any payments to your employees for more than one tax period, then you should inform HMRC that you will not be submitting a ‘Full Payment Summary’ (FPS) for future payments by submitting an EPS and completing the ‘ Period of inactivity’ field. Note:  You must tick box on EPS ‘no payments due as no employees paid in this pay period’.       Q          What do I need to do when making a payment to an employee after they have left the business? A          You will need to do the following:
  • Reinstate the employee on the payroll for 1 month only;
  • Change the employees tax code to 0T week 1/month 1 (learn more about 0t tax codes here);
  • Add the additional payment to the employees record;
  • Include the employee on your FPS file for this period;
  • Before transmitting the FPS check the employee’s year to date figures have include the changes;
  • Give the employee a letter showing the date of the payment, gross amount, any deductions made and confirm the payment is a post leaving payment;
  • Select the ‘Payment after leaving’ indicator and show the original leaving date on the FPS;
  • Do not provide the employee with a new P45.
Q          What would I do if I need to make changes to information I have already submitted to HMRC? A          You will need to send another FPS file to correct this information Q          If I discover an error on the payroll, before completing the next FPS, what would I need to do? A          You can either: 1          Amend the employee’s year to date figures on your next FPS transmission - this will be the easiest way to make the correction. 2          Submit an additional FPS for the pay period, for the employee with the error on or before you make the additional payment. If the correction is an underpayment, the ‘in this pay period’ field must only contain the difference between what had been paid originally. When making changes to a payment amount or PAYE tax deduction this may have an effect on employees NICs. Make make sure the additional FPS is clearly marked with the payment date it relates to. Clients can reach this service by dialling 0844 892 2772, and choosing Option 3. This service is available from Monday – Friday between 9am and 6pm.

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