1. Pegasus Software Payroll End Of Year 2014

2. Pegasus Software Payroll End Of Year 2014 Samantha Garrett Product Specialist

3. Agenda Changes for completion of the 2013/2014 EOY End of Year Procedures Changes for the Tax Year 2014/2015 Legislation Changes Starting the 2014/2015 Tax Year What is auto enrolment? Coffee Break

4. Agenda Pegasus Web Xchange What is Pegasus Web Xchange Overview of Payroll Self Service Operating auto enrolment within Opera 3 Activating & running auto enrolment at your Staging Date NEST Integration Communicating with your workers – Using XRL Storing Documents – Using Document Management

5. Payroll End of Year 2014 Version numbers for the 2014/2015 releases Opera II – Version 7.30 Opera 3 – Version 2.10 Capital Gold – Version 3.97 Pegasus Online Filing Manager – 3.40 When should you apply this upgrade? Documentation Payinfo.pdf Legislative Changes Product Changes Checklist

6. Changes prior to 2013/14 EOY Options for printing P60s Currently

7. Changes prior to 2013/14 EOY Options for printing P60s Post upgrade

8. Changes prior to 2013/14 EOY HMRC Stationery Order Line Ordering P60s

9. Changes prior to 2013/14 EOY HMRC Stationery Order Line Ordering P60s

10. Changes prior to 2013/14 EOY Internet Service for PAYE – P14s Now part of the Full Payment Submission Removed from the Opera & OFM menu structures Prepare Internet P35 Now part of the final Employers Payment Summary Removed from the Opera & OFM menu structures P45 & P46 Now part of the Full Payment Submission Removed from the Opera & OFM menu structures

11. Changes prior to 2013/14 EOY Changes to Real Time Information Name Validation Leave Date Validation Leavers with Zero Pay Period of Inactivity Start Date Changes to Direct Earnings Attachment Orders Pilot DEA Orders were introduced in April 2013 These are now fully introduced & available

12. Changes prior to 2013/14 EOY Changes to Auto Enrolment Technical changes to Pay Reference Period Registration with the Pensions Regulator Auto Enrolment Joining Window

13. End of Year Procedures Backup Opera II / Opera 3 Upgrade to Opera II – v7.30 / Opera 3 – v2.10 Upgrade Online Filing Manager – v3.40 Complete your normal Payroll processing EXCLUDING the final Update Calculation Payroll Summary Reports / To-Date Summary Reports P32 Processing ensuring funding & payments are correct Run UDS

14. End of Year Procedures EOY / Special Reports P60 End of Year Returns Print P35 Substitute Pay / Ded List

15. End of Year Procedures Is the Payroll linked to the Nominal Ledger? Run the N/L Analysis command Is the Payroll linked to the Cashbook? Run the Cashbook Transfer command Are the employees paid by BACS? Run the Payment Reports / Produce & List BACS command

16. End of Year Procedures RTI Submissions – Full Payment Submission Create & send the final FPS for 2013/2014 Check Service Availability

17. End of Year Procedures RTI Submissions – Service Availability www.customs.hmrc.gov.uk/maint/

18. End of Year Procedures RTI Submissions – Service Availability www.customs.hmrc.gov.uk/maint/

19. End of Year Procedures RTI Submissions – Full Payment Submission Create & send the final FPS for 2013/2014 Check Service Availability RTI Submissions – Employer Payment Summary Create & send the final EPS for 2013/2014 Payroll Update Run the Update routine for the final Pay Period End of Year Cleardown

20. End of Year Procedures Final Checks Utilities / Set Options – Current Tax Year Utilities / Calendar – Current Tax Year Utilities / PAYE/NI/Stat.Payments Utilities / Set Options – Small Employers Relief Processing – Employee Tax Codes Earlier Year Update

21. Changes for Tax Year 2014/2015 Income Tax Bandwidths 2013/142014/15 Basic Rate – 20%£0 - £32,010£0 - £31,865 Higher Rate – 40%£32,011 - £150,000£31,866 - £150,000 Additional Rate – 45%£150,000+

22. Changes for Tax Year 2014/2015 Income Tax Personal Allowances 2013/142014/15 Under 65£9,440£10,000 Aged 65-74£10,500 Aged 75 and over£10,660

23. Changes for Tax Year 2014/2015 Changes in Tax Codes 2013/142014/15 Uplift L Tax Code944L1000L Emergency Tax Code944L1000L

24. Changes for Tax Year 2014/2015 National Insurance Bandwidths – Weekly 2013/142014/15 Lower Earnings Limit£109£111 Secondary Threshold£148£153 Primary Threshold£149£153 Upper Accrual Point£770 Upper Earnings Limit£797£805

25. Changes for Tax Year 2014/2015 National Insurance Bandwidths – Monthly 2013/142014/15 Lower Earnings Limit£473£481 Secondary Threshold£641£663 Primary Threshold£646£663 Upper Accrual Point£3,337 Upper Earnings Limit£3,454£3,489

26. Changes for Tax Year 2014/2015 National Insurance Contributions – Employee (Primary) Earnings per weekNIC Rate % Below £111 (LEL)0 £111 to £153 (PT)0 £153 to £770 (UAP)12 £770 to £805 (UEL)12 Above £805 (UAP)2

27. Changes for Tax Year 2014/2015 National Insurance Contributions – Employee D NI Code Earnings per weekNIC Rate % Below £111 (LEL)0 £111 to £153 (PT)0 £153 to £770 (UAP)10.6 £770 to £805 (UEL)12 Above £805 (UAP)2

28. Changes for Tax Year 2014/2015 National Insurance Contributions – Employer (Secondary) Earnings per weekNIC Rate % Below £153 (ST)0 Above £15313.8

29. Changes for Tax Year 2014/2015 National Insurance Contributions – Employer D NI Code Earnings per weekNIC Rate % Below £111 (LEL)0 £111 to £153 (ST)0 £153 to £770 (UAP)10.4 £770 to £805 (UEL)13.8 Above £80513.8

30. Changes for Tax Year 2014/2015 National Insurance Contributions – Employee (Primary)

31. Changes for Tax Year 2014/2015 National Insurance Contributions – Employer (Secondary)

32. Changes for Tax Year 2014/2015 Statutory Payment Rates (SSP/SMP/SAP/OSPP/ASPP) Weekly Rate 2013/14 Weekly Rate 2014/15 Statutory Sick Pay£86.70£87.55 Statutory Maternity Pay£136.78£138.18 Statutory Adoption Pay£136.78£138.18 Ordinary Statutory Paternity Pay £136.78£138.18 Additional Statutory Paternity Pay £136.78£138.18

33. Changes for Tax Year 2014/2015 Student Loan Threshold 2013/142014/15 Threshold£16,365£16,910

34. Changes for Tax Year 2014/2015 Pensions Auto Enrolment 2013/142014/15 Auto Enrolment Threshold £9,440£10,000 Qualifying Earnings – Lower Threshold £5,668£5,772 Qualifying Earnings – Upper Threshold £41,450£41,865

35. Changes for Tax Year 2014/2015 New Attachment Order – Direct Earnings Attachment (DEA) Pilot project started in April 2013 These new DEA orders do not replace any existing orders These DEA orders do not need to be agreed in civil court DWP sends notice to Employer with Payment Schedule Deductions are normally based on a table of rates Deductions can also be based on a fixed amount

36. Changes for Tax Year 2014/2015 New Attachment Order – Direct Earnings Attachment (DEA) Net Earnings (Weekly)% < £1000 £100 to £1603 £160 to £2205 £220 to £2707 £270 to £37511 £375 to £52015 > £52020

37. Changes for Tax Year 2014/2015 New Attachment Order – Direct Earnings Attachment (DEA) Net Earnings (Monthly)% < £4300 £430 to £6903 £690 to £9505 £950 to £1,1607 £1,160 to £1,61511 £1,615 to £2,24015 > £2,24020

38. Changes for Tax Year 2014/2015 Bank Account Details

39. Changes for Tax Year 2014/2015 Employment Allowance (Employers NI)

40. Changes for Tax Year 2014/2015 Employment Allowance (Employers NI)

41. Changes for Tax Year 2014/2015 Employment Allowance (Employers NI)

42. Changes for Tax Year 2014/2015 SSP Recovery Percentage Threshold Scheme Abolished

43. Changes for Tax Year 2014/2015 Normal Hours Worked 2013/14 Tax Year2014/15 Tax Year AUp to 15.99 hours B16 – 29.99 hours16 – 23.99 hours C30 – hours or more24 – 29.99 hours DOther30 – hours or more EOther

44. Changes for Tax Year 2014/2015 Late PAYE Reporting Reason / on FPS

45. Changes for Tax Year 2014/2015 Late PAYE Reporting Reason / on Employees Details & Bank

46. Changes for Tax Year 2014/2015 Technical Changes to Auto Enrolment Legislation Align Pay Reference Period (PRP) with the Tax Period

47. Changes for Tax Year 2014/2015 Technical Changes to Auto Enrolment Legislation

48. Changes for Tax Year 2014/2015 Technical Changes to Auto Enrolment Legislation Align PRP with the Tax Period Registration with the Pensions Regulator Joining Window

49. Changes for Tax Year 2014/2015 SCON Numbers for COSR Pension Schemes Scheme Contracted-Out Numbers will be Mandatory These are included in the FPS HMRC will notify Employers where the SCON is missing The Calculation Audit Report details missing SCON FT Tax Codes Abolished

50. Setting up for 2014/15 Tax Year Take a Backup Update PAYE / NI / Stat. Payments Table From UDS From Copy Statutory Rates Check this data is correct Final Checks Small Employers Relief Check Employee Details

51. What is coming down the line April 2015 Shared Parental Leave Auto Enrolment / Re-enrolment Young Persons NI April 2016 Contracting out of the State Pension will be abolished Additional Student Loan Threshold Introduced Scottish Taxation State Pension Age Beyond April 2016 OFM / ID Assurance

52. Pegasus Software Payroll End Of Year 2014

53. Pegasus Software Workplace Pensions Reform Samantha Garrett Product Specialist

54. Agenda What is auto enrolment? Operating auto enrolment within Opera 3 Activating & running auto enrolment at your Staging Date NEST Integration Communicating with your workers – Using XRL Storing Documents – Using Document Management Coffee Break

55. Auto Enrolment What is auto enrolment? New Pensions law started in October 2012 Employers will have to auto enrol workers into Pensions Pay into that Pension Scheme Inform their workers about auto enrolment

56. Auto Enrolment Why are the Pension Regulators doing this? Encourage private pension saving People living longer Many not saving enough Over 50% of adults have no Private Pension savings Provide another source of Income when retired State Pension is only £110.15 a week for a single person Employers to enrol worker automatically to help people save Estimated 8 million worker will be auto enrolled An individual can opt out if required

57. Auto Enrolment How will this be implemented? 1.Nominate a contact 2.Know your staging date 3.Assess your workforce 4.Review your pension arrangements 5.Communicate the changes to all your workers 6.Automatically enrol your 'eligible jobholders' 7.Register with The Pensions Regulator and keep records 8.Contribute to your workers' pensions

58. Nominate a point of contact Log into the Pensions Regulators Website www.TPR.gov.uk/autoenrol-nominate

59. Nominate a point of contact

60. Know your staging date Knowing the staging date? The date when the new law is switched on for employers is known as the staging date. The staging date for employers varies according to the number of employees they employ.

61. Know your staging date

63. Knowing the staging date? www.ThePensionsRegulator.gov.uk www.TPR.gov.uk

64. Know your staging date

65. Assess your workforce What do you mean by assessing your workforce? You need to assess the category a worker falls into So how can they be categorised? 3 Category Eligible job holder Non-eligible job holder Entitled worker 2 Thresholds Auto enrolment threshold (£9,440) Qualifying earnings lower threshold (£5,668)

66. The different types of workers Workers Aged 16-74 Earning below £5,668 Have a right to join Jobholders Aged 22-SPA Earning above £9,440 Must be automatically enrolled Aged 16-74 Earning above £5,668 but below £9,440 OR Aged 16-21 or SPA-74 Earning above £9,440 Have a right to opt in Eligible jobholders Non-eligible jobholders Entitled workers

67. State Pension Age Remember, the State Pension Age is changing AgeMenWomen 65CurrentApr 2016 / Nov 2018 66October 2020 672026 / 2028 682044 / 2046

68. Review your pension arrangements What do we need to do in order to review our pension arrangements? Select Qualifying Pension Scheme Auto enrolment criteria Qualifying criteria Minimum requirements

69. Review your pension arrangements Minimum requirements - Contribution levels Qualifying earnings (£5,668 – £41,450) Certification BandEmployerTotal Qualifying Earnings3% 8% BandEmployerEmployeeTotal Tier 1 : < 85% of Pensionable Pay4%5%9% Tier 2 : => 85% of Pensionable Pay3%5%8% Tier 3: Total Earnings3%4%7%

70. Review your pension arrangements Phased Introduction Qualifying earnings (£5,668 – £41,450) DurationEmployer ContributionTotal Contribution Staging Date – 30/09/20171%2% 01/10/2017 – 30/09/20182%5% 1 st October 2018 Onwards3%8%

71. Review your pension arrangements Phased Introduction – Certification Tier 1 Tier 2 Tier 3 DurationEmployer ContributionTotal Contribution Staging Date – 30/09/20172%3% 01/10/2017 – 30/09/20183%6% 1 st October 2018 Onwards4%9% DurationEmployer ContributionTotal Contribution Staging Date – 30/09/20171%2% 01/10/2017 – 30/09/20182%5% 1 st October 2018 Onwards3%8% DurationEmployer ContributionTotal Contribution Staging Date – 30/09/20171%2% 01/10/2017 – 30/09/20182%5% 1 st October 2018 Onwards3%7%

72. Review your pension arrangements What if I have an existing pension scheme? Does that pension scheme meet the criteria for a Qualifying Scheme Can I use my existing pension scheme to auto enrol other workers? If confirmed as Qualifying Scheme then yes Or select other Qualifying Schemes Other NEST

73. Communicate the changes to all your workers What type of communications will I need to provide to my workers? Entitled worker Rights to join a pension scheme Non-eligible job holder Right to opt-into an auto enrolment scheme Eligible job holder Information about the auto enrol process

74. TPR – Helpful Tools

83. Automatically enrol your 'eligible jobholders' Must enrol within the joining window Information to pension provider Information to eligible job holders How do I auto enrol 'eligible jobholders'?

84. Automatically enrol your 'eligible jobholders' Pensions Regulator – www.tpr.gov.uk DWP – www.dwp.gov.uk NEST – www.nestpensions.org.uk

85. Automatically enrol your 'eligible jobholders' Must enrol within the joining window Information to pension provider Information to eligible job holders Activate membership to the pension scheme Opt out period Eligible job holders can opt out using opt-out notice Contributions made during period are returned How do I auto enrol 'eligible jobholders'?

86. Automatically enrol your 'eligible jobholders' Details to identify the jobholder Employer / Jobholder Name / NINO / DoB / etc. What you need to know statements to the jobholder Your employer cannot ask or force you to opt-out If your are asked to leave contact www.tpr.gov.ukwww.tpr.gov.uk If you change your mind you may be able to opt back in If you change job your new employer will normally put you back into pension saving If you have another job, your other employer might put you into pension saving. This notice applies only to the employer named above Opt-out Notice

87. Opting in and joining a pension scheme Non eligible jobholders Right to opt in to the auto enrolment Pension Scheme Opt in notice Entitled workers Right to join a Pension Scheme Joining notice How do I handle opt ins & joining requests?

88. Post Auto Enrolment On-going responsibilities Paying contributions Record keeping Manage opt-outs / opt-ins What are my on-going responsibilities?

89. Postponement Postponement up to 3 months Employer postpones for employees New starters Workers becoming eligible Job holders Can we postpone the auto enrolment process?

90. Register with The Pensions Regulator What do I have to do to register with The Pensions Regulator? Register within 5 months of staging date Details of employers business Detail of qualifying schemes used Number of eligible job holders auto enrolled How On-line

91. Register with The Pensions Regulator

93. Safeguards So what safeguards are in place to protect employees? At Job interview must not screen applicants based on opt -out No inducements -Extend or renew a contract -Offer a one-of payment or a higher salary -Offer a promotion Prohibitive activity -Withhold a promotion -Withhold a pay increase -Redundancy or dismissal

94. Summary 1.Know your staging date 2.Assess your workforce 3.Review your pension arrangements 4.Communicate the changes to all your workers 5.Automatically enrol your 'eligible jobholders' 6.Register with The Pensions Regulator and keep records 7.Contribute to your workers' pensions

95. Pegasus Software Coffee Break

96. Pegasus Software Implementing Auto Enrolment in Opera 3

97. Implementing Auto Enrolment Recording your Staging Date Payment Profiles

98. Implementing Auto Enrolment Maintenance / Payment Profile / Auto Enrolment

99. Implementing Auto Enrolment Activating Auto Enrolment Payment Profiles Pension Schemes At Your Staging Date Assessing Your Workforce Opting Out Registering with Pensions Regulator

100. Register with The Pensions Regulator

101. Implementing Auto Enrolment Activating Auto Enrolment Payment Profiles Pension Schemes At Your Staging Date Assessing Your Workforce Opting Out Registering with Pensions Regulator NEST Integration Pensions Provider Payments

102. Implementing Auto Enrolment Version Numbers for 2014/2015 Payroll Release Payroll Upgrade 2014/2015 - Opera 3 -v2.10 -Opera II-v7.30 Auto Enrolment -Opera 3 -v1.80 -Opera II-v7.20 NEST Functionality -Opera 3 -v1.81 -Opera II-v7.21 XRL with NEST -XRL-v1.50

103. Implementing Auto Enrolment Origo Pension Providers

104. Communications to your workforce You are required to keep your employees informed Letter 1 – Eligible Jobholder / No Postponement Letter 2 – Non Eligible Jobholder / No Postponement Letter 3 – Entitled Worker / No Postponement Letter 4 – Workers Already in a Qualifying Pension General Notice A – Postponement (All Workers) General Notice B – Postponement (Ex. Pension Members) General Notice B – Postponement (Non Eligible Workers) General Notice B – Postponement (Entitled Workers)

105. Communications to your workforce How are you identify who gets what letter? You need to assess the category a worker falls into How about using Pegasus XRL? XRL allows you to extract data from the Opera Payroll Extraction is into Excel Excel allows you to mail merge with Word Download the letter templates for TPR / NEST

106. Pegasus XRL – Winning BI Tool

107. Pegasus Software Pegasus Web Xchange in Opera 3

108. Opera 3 – Pegasus Web Xchange Pegasus Web Xchange – Overview Opera 3 Database PWX Database + Data synced via Communication Framework Opera 3 Website Communication Framework Communication Framework Subset of Opera 3 data PWX specific data