Ceridian payroll update P.Simon Parsons M.Sc FIPPDip MBCS Director of Payments, Benefits & Compliance Strategies

Today’s agenda Ceridian 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 interface Ceridian 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 interface Moderate support products (updated but no active enhancement) Ceridian Payroll Solution 2 (Source Payroll) FastPay

Ceridian payroll user interface Passive 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 updates A: 8 th June 2006 NINO trailing character compulsory Leaver date out of period (up to 2 months) C: 31 st August 2006 Flexible adds to earnings accumulators (+, -) A: 6 th October 2006 SMP Phase 1 – 39 week payment capability Reducing balance for pre-tax and pre-NICs deductions

Ceridian payroll engine updates A: 11 th January 2007 SMP Phase 2 – Payment Saturdays (not Sundays), any day start, period based payments A: 1 st 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 updates B: 15 th March 2007 New England / Wales council tax AEO tables New magistrate fine identifiers B: 27 th April 2007 Ceridian Electronic Exchange phase 5 Budget 2007 and P45 negatives A: 31 st May 2007 SMP phase 3 - Alabaster

Tax year end 2006/ 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

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 reminder Employers 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 Athen use 522L cumulative Declaration Bthen use 522L week 1 / month 1 Declaration Cthen 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 enhancements Ceridian 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 “ ” should not be entered if not genuine? HR processes and systems will need to ensure correct data capture

CIS Reminder CIS is not standard functionality within Ceridian payroll although some customers may be using deduction facilities to enable the calculation From 6 th 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 resolved HMRC 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 6 th April 2007 (Good Friday) but paid early on 5 th April 2007, may be treated for statutory purposes as if paid on 6 th 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 future Flexible 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

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