Page 33 - BOSS Today Issue 15

finance

TIMe To STop

payIng “Mr X”

The biggest change in PAYE since it was introduced in 1944 means it is

time to make sure your payroll system is accurate and effective

hange is in the air at as an employer, you should
HMRc. in what is the really check the details you have
cbiggest shake up of for your employees against a
the PaYe system since it was passport, birth certificate or
introduced in 1944, the plan official documents from either
is for employers to move from HMRc or the Department for
current arrangements, where Work & Pensions (DWP). You
returns are made at the end should also verify that you
of each tax year, to a new real have recorded your employees’
time information (RTi) system, full forenames and surnames,
where returns will be made ensuring that any double-
to HMRc electronically every barrelled names are recorded
time payments are made to in full, and that forename
employees. or surnames have not been
for most businesses, the shortened to an initial or
implementation of RTi will abbreviation such as Mike for
start from 6 april next year, Michael.
when they have to make their
employer alignment submission, communicate
uploading to HMRc the details Thirdly, employers need
of all of their active employees to communicate to their
at the start of the year. as this your processes routinely collect by employers holding incorrect organisations any new
will immediately follow the information such as employee information about employees’ requirements and deadlines that
2012/13 tax year end, it really name, date of birth, ni number, names, dates of birth or ni RTi will place on them.
does pay to start planning for gender and address, and that numbers. Some of the errors There is, however, light at
the changeover now to ensure you can transmit these to the cited for that year make for the end of the tunnel. Once
that all goes smoothly, especially payroll function quickly enough interesting reading: the new RTi system has been
if you pay your staff on a weekly to meet your new submission ✱ There were 572 people whose implemented, businesses should
basis. deadlines. surname consisted of only not longer need to submit P45s,
employers first need to Secondly, employers need “X”, ranging from “Mr X” to P46s for starters and leavers,
investigate the demands that to do a data cleanse of their “Mrs XXXXXXXXX” and P35s and P14s at the year
the new system will have on existing payroll employee ✱ 507 employees were called end. That should alleviate much
their existing processes and information to ensure that it is an Other, while 160 had the of the end of March rush that
deadlines. it is worthwhile accurate enough to meet the surname “Test” and 100 were usually affects many payroll
investigating with your payroll requirements of RTi. apparently known as “Do functions.
software provider whether your This is not as unnecessary not use”
current installation is “RTi ready” as you may think it sounds. ✱ Over 2,000 employees had n for MorE InforMatIon,
or if you will need an upgrade, according to HMRc, 80 per cent the aB123456 ni number contact your boSS hr
patch or change of software. it is of data quality problems in the ✱ Some 40 employees were advISEr on 0845 450 1565.
also a good idea to ensure that 2009/10 tax year were caused apparently over 200 years old

December 2012/January 2013 | BOSS TODAY 33

Boss p32-p33.indd 3 30/11/2012 14:45