Preparing for the Start of the Tax Year

This chapter discusses how to:

Load tax code changes from the Inland Revenue.
Update employees' tax codes.

Loading Tax Code Changes from the Inland Revenue

This section provides an overview of the code number changes process, lists prerequisites, and discusses how to:

Run the Code Number Changes process.
Review the results and rerun the process.

Understanding the Code Number Changes Process

After processing the employee information that you submitted using the Pay/Pension Numbers process, the Inland Revenue issues employees’ new tax codes on magnetic tape.

Use the Code Number Changes process to load the updated tax codes into your PeopleSoft database. The process inserts a new row into the tax table for each employee listed in the file.

If any records could not be processed, the system adds an error message to a message log file and adds the data to an error file as illustrated in this diagram:

Code Number Changes process

Use the message log file and the error file to review the results and resolve issues with the data. To simplify this process, you make corrections in the error file and not in the original Inland Revenue-delivered file.

The error file format meets Inland Revenue format requirements which enables you to use the corrected error file as input if you need to rerun the process.

Prerequisites

Before you run the Code Number Changes process, do the following:

Extract the data from the Inland Revenue tape and copy the file to the %PS_SERVDIR%\files directory.

The specification of the tape and the format of the records are detailed in the Inland Revenue documentation.

After you’ve extracted the file, check that the format is correct. The Code Number Changes process is designed to work with files that match the Inland Revenue specification only.

Note. The filename can be up to a maximum of 20 characters long.
Check your tax table for rows with an effective date that conflicts with the tax code effective date.

When you run the Code Number Changes process, you specify the effective date for the new rows inserted into the tax table (this is known as the uplift date). If the process encounters a row with an effective date that is later than the uplift date, it can’t insert the new tax code and adds an error message to a log file.

This problem occurs if, for example, the Inland Revenue issue a notice of tax code change for an individual employee that you have manually entered into the system. In this case, you need to check which tax code is correct.

To avoid this problem, it is recommended that you check for rows in the tax table with an effective date later than the uplift date. The following SQL query returns any such rows (replace uplift_date with the actual date):
```
SELECT  EMPLID, TAXCODE_UK, EFFDT
		     FROM  PS_GPGB_EE_TAX
		     WHERE EFFDT > uplift_date
```
It is not mandatory that you resolve problems with effective date conflicts before you run the process. However, if you don’t, the process will not be able to insert new rows for the employees with the conflicting dates.

If there are a small number of employees with date conflicts you can run the process and resolve the conflicts after Code Number Changes has run.

Page Used to Run the Code Number Changes Process

Page Name	Object Name	Navigation	Usage
Code Number Change	GPGB_RUNCTL_CNC	Global Payroll & Absence Mgmt, Taxes, MT1 — Code Number Changes GBR, Code Number Change	Run the Code Number Changes process.

Running the Code Number Changes Process

Access the Code Number Change page.

Uplift Date

The effective date of the new rows that are inserted into the tax table (that you can view using the Maintain Tax Data page). Global Payroll for the U.K. uses employees’ new tax codes in tax calculations from this date.

Inland Revenue Flat File

Enter the name of the file you copied from the Inland Revenue tape.

Note. This file must be in the %PS_SERVDIR%\files directory before you can run the Code Number Change process.

Inland Revenue Error File

Enter the name for the error log file.

Message Log File

Enter the name for the process log file.

Reviewing the Results and Rerunning the Process

After running the Code Number Change process, check the results of the process as follows:

Use the Process Monitor to check that the process has run successfully. View the process monitor log and trace file.

Note. It’s important to check the process monitor log file even if you see a Success run status. If the process does not find the Inland Revenue flat file, it completes with a success status, but the log file shows the error “filename not found”.
Check the message log file in the %PS_SERVDIR%\files directory. If there are errors, review the error messages and check the error file created.
Fix errors and rerun the Code Number Change process, if required.

Steps 2 and 3 are described in more detail in the sections that follow.

Reviewing the Message Log File

This is an example of a message log file created by the Code Number Changes process:

Example Code Number Changes process log file

Note. This section refers to the “input file”. This is the file you specified in the Inland Revenue Flat File field. If this is the first time you’ve run the process, the input file is the Inland Revenue-delivered file. If you’re rerunning the process, the input file is the corrected error file that contains unprocessed employees only. See the section Rerunning the Code Number Changes Process for more information.

The message log file lists:

The lines in the input file that weren’t processed.
Process summary information.

This table lists the summary information provided and what you should expect to see if the process has run successfully:

Summary Data	Description	Expected Value
Number of records inserted	Number of records inserted into the tax table	If there are no errors in the data, this number should equal the Total Number of Type 2 Records.
Number of records not inserted	Number of records that can’t be updated because of effective date conflicts.	Zero
Number of employees not in pay entity	The lines in the input file with an emplID that isn’t in the pay entity.	Zero. If this value is not zero, the input file includes employee IDs that are either not valid or are included in a different pay entity.
Number of empty rows	Number of blank lines in the input file.	Not applicable. Blank lines are not processed.
Total number of Type 2 records	Total number of employee records in the input file. This excludes blank lines.	This number should match the Number of records inserted.
Total number of lines	Total lines in the input file, including employee data, blank lines, and the header and footer information.	Not applicable.

For every line in the input file that is not processed, the message log file lists the:

Line number
Error message

This table lists the error messages and the reason for the errors:

Error Message	Reason
No Data found	A blank line in the input file. This doesn’t stop the process completing successfully.
Employee emplID failed because of Effective Date	The employee specified has an existing row in the tax table with an effective date that conflicts with the uplift date. See Running the Code Number Changes Process.
Employee emplID does not exist within payentity entity_name	The emplID specified is not in the pay entity being processed. Check whether it is a valid emplID.
Employee number is blank	The emplID is missing from the line. Check whether this is a valid employee for the pay entity being processed. If it is a valid employee, you need to add the emplID to the data in the error file.

Investigating Errors

The Code Number Changes process copies the lines of data that it couldn’t process to the error file that you specified, as shown in this diagram:

Example of the files created by the Code Number Change process

To investigate an error you can look at the input file or the error file. If this is the first time you’ve run the process, the input file is the Inland Revenue-delivered file which contains all your employees. It is easier to search the error file which contains unprocessed data only. However, remember that the line number in the log file refers to the input file.

Do not update the Inland Revenue-delivered file. Only update the data in the error file because this is the file you use to rerun the process.

To check an employee’s details, navigate to the Maintain Tax Data page as follows: Global Payroll & Absence Mgmt, Payee Data, Taxes, Maintain Tax Data GBR, Maintain Tax Data

Rerunning the Code Number Changes Process

When you have resolved the errors and updated the error file as necessary, you can rerun the Code Number Changes process.

When you rerun the process, don’t resubmit the original Inland Revenue flat file because it includes all the employees already processed. Instead, use the corrected error file which has the same format as the Inland Revenue-delivered file.

This table explains how to complete the fields on the run control page when you rerun the process:

Field	Value
Uplift Date	Use the same date as before, or enter a different effective date as necessary.
Inland Revenue Flat File	The error file (that you have updated). Note. Do not remove the header and footer information from the error file. The process fails if this information is missing.
Inland Revenue Error File	Enter the name of a new error file. The system doesn’t allow you to use the same filename for both the flat file and the error file.
Message Log File	Use the same log file name as before, or enter a new log file name.

Note. When you rerun the Code Number Changes process, the message log file refers to lines of data in the corrected error file, and not the original Inland Revenue-delivered file.

See Enterprise PeopleTools PeopleBook: PeopleSoft Process Scheduler

Updating Employees' Tax Codes

This section provides an overview of the Tax Uplift process and discusses how to change employees' tax codes.

Understanding the Tax Uplift Process

For the majority of employees, their tax code comprises a letter and a number:

The letter denotes the type of tax payer.
The number indicates the employee's tax free amount for the year.

Each time the U.K. government introduces changes to personal allowances, this has an impact on the number in employees' tax codes. Global Payroll for the U.K. provides the Tax Uplift process to automate the updating of employees' tax codes. This process updates tax codes for all employees with the same letter in their tax codes.

The Inland Revenue notifies employers of the tax code increases in a P7X document which is included in the Employer's Budget Pack.

Page Used to Run the Tax Uplift Process

Page Name	Object Name	Navigation	Usage
Taxcode Uplift	GPGB_TAXCDE_UPLIFT	Global Payroll & Absence Mgmt, Taxes, Uplift Tax Codes GBR, Taxcode Uplift	Run the Tax Uplift SQR process (GPGBTXUP) that changes the tax codes for employees with the same tax code letter.

Running the Tax Uplift Process

Access the Uplift Tax Codes page.

Report Request Parameters

Select one of these parameters:

Tax Uplift to perform a tax uplift.

Week 1 Month 1 to change all the Week1/Month1 indicators to a cumulative basis for the first processing period in a new tax year. If you select Week 1 Month 1, the Code Letter and Tax Amount fields become unavailable for data entry.

Pay Group

Select the paygroup that is subject to the tax uplift, or for which Week 1/Month 1 indicators are being changed.

Uplift Date

Enter the date from which the Tax Code Uplift or Week 1/Month 1 changes are effective. The processes will apply this value to the Start Date when the new employee tax records.

Code Letter

Enter the letter or suffix of the tax code that needs to be increased (uplifted).

Tax Amount

Enter the amount to increase the tax code with the code letter specified in the Code Letter field. The increase is defined by the Inland Revenue in their Employer Budget Pack for each code letter.

Note. You can also decrease the amount by entering a negative number.

Uplift Date	The effective date of the new rows that are inserted into the tax table (that you can view using the Maintain Tax Data page). Global Payroll for the U.K. uses employees’ new tax codes in tax calculations from this date.
Inland Revenue Flat File	Enter the name of the file you copied from the Inland Revenue tape. Note. This file must be in the %PS_SERVDIR%\files directory before you can run the Code Number Change process.
Inland Revenue Error File	Enter the name for the error log file.
Message Log File	Enter the name for the process log file.

Report Request Parameters	Select one of these parameters: Tax Uplift to perform a tax uplift. Week 1 Month 1 to change all the Week1/Month1 indicators to a cumulative basis for the first processing period in a new tax year. If you select Week 1 Month 1, the Code Letter and Tax Amount fields become unavailable for data entry.
Pay Group	Select the paygroup that is subject to the tax uplift, or for which Week 1/Month 1 indicators are being changed.
Uplift Date	Enter the date from which the Tax Code Uplift or Week 1/Month 1 changes are effective. The processes will apply this value to the Start Date when the new employee tax records.
Code Letter	Enter the letter or suffix of the tax code that needs to be increased (uplifted).
Tax Amount	Enter the amount to increase the tax code with the code letter specified in the Code Letter field. The increase is defined by the Inland Revenue in their Employer Budget Pack for each code letter. Note. You can also decrease the amount by entering a negative number.