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Untitled spreadsheet - Sheet1

The document outlines the payroll process, including setting up employee records, processing payroll, and submitting Real Time Information (RTI) to HMRC. It details the steps for payroll preparation, processing, and finalization, as well as pension and holiday setups. Additionally, it covers finance assistant tasks such as responding to supplier statements, purchase ordering, and invoicing.

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Izaan shah
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4 views

Untitled spreadsheet - Sheet1

The document outlines the payroll process, including setting up employee records, processing payroll, and submitting Real Time Information (RTI) to HMRC. It details the steps for payroll preparation, processing, and finalization, as well as pension and holiday setups. Additionally, it covers finance assistant tasks such as responding to supplier statements, purchase ordering, and invoicing.

Uploaded by

Izaan shah
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Payroll Process RTI

1. Setting Up employee records real time Information


Start dates FPS
Payment Method PAYE Referenece
Payment Frequency Agent Details if any
P45 HMRC Gateway Credentials
Amounts '/ Salary
2. Setting up the Process Date
End / Start of the Week
End / Start of the month
3. Making Adjustments
Leaver
SSP
SMP
SPP
Holiday
4. Payrun
make payments to all employees
Overtime 154 hrs 10
1.5x 15
5. Pre Update reports
Payslips PAYE and the Amounts Paid and NI cont by the employee
Payment Summary 1 & 2 Statutary & NI cont by the employer
6. Update Records
Backup
7. Post Update Reports
Payment summary 3 Paid
P32 Form Sent to the HMRC and it has all deductions mention
P45 Form
8. Full payment Submission
PAYE generated is submitted to the HMRC by the Employer

Pension Setup: Holiday Setup


Scheme Name NEST, the peoples pension 1. Setup the Annual Entitelment
Scheme Provider 28 Days
Pension Type Net Pay arrangement 2. Define Holiday Scheme start
Contribution Rate 3. Days or Hours already take by employee (if any)
Employee 5%
Employer 3%
Qualifying Employees
Setup lower and Upper Thresholds
Assign the pension scheme to the employees
Start Date of the scheme
start of the payroll year
P32 Form

Payroll Related
Payroll Preparation:
Ensure all employee records are up to date (new starters, leavers, changes in pay).
Confirm pay elements (basic pay, overtime, bonuses, deductions, etc.).
Set pay date and pay frequency (weekly, monthly, etc.).
Back up your company data before running payroll.

Processing Payroll:
Enter employee timesheets or hours worked (if applicable).
Input variable payments (e.g., commissions, bonuses, sick pay).
Let Sage calculate gross pay, deductions (PAYE, NICs, pensions), and net pay.
Review payslips for accuracy before finalizing.

Finalizing Payroll:
Run the "Pre-update Reports" to check for errors.
Update records to finalize payroll for the period.
Print/email payslips to employees.
Submit RTI (Real Time Information) to HMRC: FPS (Full Payment Submission) and EPS (Employer Payment Summary) if needed.
Post-Payroll Tasks:
Process bank payments (BACS or manual entry).
Generate payroll reports (summary, cost analysis, etc.).
Update accounting software with payroll journal entries (manual or via Sage integration).
Repeat process for next pay cycle.

What is RTI in Simple Terms?


It means that every time you pay employees, you must send details to HMRC at the time of payment, not just at the end of the tax year like it used to be.

Types of RTI Submissions:


FPS (Full Payment Submission)

Sent on or before payday.

Includes details of employee pay, tax, NICs, and other deductions.

EPS (Employer Payment Summary)

Sent if you need to claim reductions (e.g. for statutory payments or CIS deductions)

Also used when no employees were paid in a pay period.

NVR (NINO Verification Request)

Optional: Used to verify or request National Insurance numbers for employees.

Why RTI is Important


Ensures employees pay the right tax and NI.

Supports universal credit by giving real-time earnings data.

Helps HMRC spot underpayments or errors quickly.

FInance Assistant Related


Responding to Supplier Statements:
Receive Supplier Statement – Often via email or post.
Match to Purchase Ledger – Compare statement to your records in accounting software (like Sage, Xero, or QuickBooks).
Reconcile – Check if all listed invoices are recorded and paid.
Flag Discrepancies – If invoices are missing or unpaid, investigate.
Respond – Confirm statement is correct or provide remittance advice/dispute items if needed.

Purchase Ordering:
Create a Purchase Order (PO) – Include supplier name, order date, items/services, quantities, and prices.
Get Approval – Submit for manager sign-off (if required).
Send PO to Supplier – Usually via email or procurement portal.
Track PO – Await delivery of goods/services.
Match with Delivery Note and Invoice – Ensure goods received match the PO.

Invoicing:
Create Sales Invoice – Input customer name, invoice date, due date, description of goods/services, and amounts.
Assign Correct VAT Code – If applicable.
Send Invoice – Email to customer or upload to customer portal.
Record in Accounting Software – So it’s included in receivables and aged debtor reports.
Follow Up on Payments – Chase overdue invoices and update when paid.

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