Managing Starters, Leavers, and Transfers

This chapter discusses how to:

• Identify starters and transfers.

• Manage termination and rehire within a pay period.

• Generate P45 reports.

Identifying Starters and Transfers

Global Payroll for the U.K. identifies new starters during the payroll process based on action codes in employees' job data records. For all starters, the system creates a new set of accumulators used for calculating statutory tax and national insurance. In effect, this identifies a new period of employment and ensures that the employee's tax and national insurance calculations are correct and end of year reporting meet statutory requirements.

Typically, starters are employees who have been hired or rehired during the pay period. However, employees who have previously transferred overseas should be processed as starters when they return to the U.K.

Action and reason codes are configurable, which means that the codes used for starters vary by organisation. PeopleSoft delivers the Process Action and Reason page for you to identify which action and reason codes your organisation uses for starters (using the process code P01).

When the payroll process runs, Global Payroll for the U.K. searches for job data entries within the pay period that match the action codes and reasons you have specified for starters.

As delivered, the Process Action and Reason page is set up to process employees with these action codes as starters (process code P01):

• HIR hire

• REH rehire

Be default, transfers (XFR) are not processed as starters. If you want certain types of transfers processed as starters, you must update the Process Action and Reasons page. Click the Reasons link for the XFR code and select the reasons that should trigger starter processing.

Note. This page is also used to identify action and reason codes for the P45 process, using the process code P45.

See Also

Setting Up Process Action and Reason Codes

Managing Termination and Rehire within a Pay Period

This section discusses how you process an employee who is terminated and then rehired within the same pay period.

To illustrate this, consider the example of an employee who leaves on June 5, and is then rehired on June 20. If the employee is paid monthly the termination and rehire are processed within the same pay period. To process the June payroll correctly you need to ensure that the new period of employment starting on June 20 has the correct P45 information on the Maintain Tax Data page. However, you have not run the payroll for June and therefore you have not generated a P45 for the employee's termination.

To process an employee terminated and rehired within a pay period:

1. Run the payroll for the pay period, but do not finalise it.

2. Run a draft P45 report for the employee.

   This provides you with the total tax and pay for the tax year.

3. Add a new row to the employee's tax data with an effective date that matches the rehire date.

   Navigate to the Maintain Tax Data page as follows: Global Payroll & Absence Mgmt, Payee Data, Taxes, Maintain Tax Data GBR. Select P45 in the Notification Source field, and enter the pay to date and tax to date values from the draft P45. This ensures that the calculations for the new period of employment are correct.

4. Rerun and finalise the payroll for the pay period.

See Also

Processing Payroll

Entering Statutory Tax and National Insurance Details

Generating P45 Reports

This section provides an overview of the P45 process, lists prerequisites, and discusses how to:

• Run the P45 Identification process.

• View the P45 identification results.

• Run the P45 report.

• Define the output file path.

Understanding the P45 Process

This section discusses:

• P45 processing.

• The P45 Identification process.

• The P45 report.

P45 Processing

The P45 report is a statutory report that is issued to employees who leave your employment (although a P45 can be issued in other situations according to your setup). The P45 summarises the tax and pay as of the date of last payment and the employer’s tax and reference details required by the employee.

With Global Payroll for the U.K., you can generate P45s for leavers as follows:

1. Run the P45 Identification Application Engine process (GPGB_P45).

   This creates a list of payees who qualify for a P45 and have not already received one. You can view the results of the identification process and adjust the list of identified employees before printing the reports.

2. Produce the P45s.

   The system generates the P45s based on the results of the identification process.

The P45 Identification Process

The P45 Identification process (GPGB_P45) uses these criteria to determine who requires a P45:

• Criteria entered on the run control page.

  When you run the P45 Identification process you define the employees and the period to process. The group of employees are defined by these fields: pay entity, paygroup, and calendar group ID.

• Actions and reasons identified for the P45 process on the Process Action and Reason page.

  Updates to payee job data, for changes such as promotions, transfers, and terminations, use action and reason codes to identify the type of personnel change. In Global Payroll for the U.K. you select those action and reason codes that trigger the production of a P45 on the Process Action and Reason page. Most commonly, P45s are required for terminations so you should ensure that any action codes your organization uses for terminations are included on this page. However, you may also create P45s for other types of changes, such as transfers, and the action codes for these changes must also be added. This is discussed in detail in the chapter “Setting Up Country Data”.

  See Setting Up Process Action and Reason Codes.

Using these selection criteria, the P45 Identification process:

• Searches payees' job data for entries with an effective date within the range of the begin and end date you specified, and action/reason codes that match those selected on the Process Action and Reason page.

  The process also checks whether payroll has been processed for these job data entries. If an employee is terminated in Human Resources, but this event was not processed in payroll or the event has been processed but the calendar is not finalised, the process sets the P45 Generation Flag to Unprocessed/Unfinalized Termination Calendar ID.

• Checks that a final P45 has not been printed for the payee.

  The P45 leaver information on the Maintain Tax Data page is populated with the Calendar Group ID and leave date when a final P45 is printed for a payee. Only those payees who don't have these fields populated are identified by the P45 Identification process.

Details of payees who meet the criteria are added to a results table (GPGB_EE_P45_ID), which you can view using the P45 Identification Results page. The P45 Generation Flag field indicates whether a P45 should be printed for the payee. Initially, the P45 Identification process assigns a value, but you can update this from the P45 Identification Results page.

You can:

• Suspend production of a P45.

  Use this option if there is an error in a payee's data such as termination date entered against the wrong employee record. You may also suspend production because there is an adjustment to the employee's pay that needs to be included in the P45. This prevents a P45 from being printed for the payee. Once data has been corrected, for example the removal of termination row within the HR record or adjustment to pay, you must update the P45 Generation Flag to remove payees from this suspend status — neither the P45 Identification process nor the P45 report update this field for payees with a suspend status.

• Delete the payee from the results table.

  Use this option to remove payees with a suspend status from the results table when you have corrected the error that was originally causing the payee to be identified, such as termination entered against the wrong employee.

• Override the calendar group ID.

  The P45 Identification process retrieves the calendar ID in which the payee's termination was processed. You can use a different calendar ID if there is an adjustment to payee payroll. For example you could use this option if you have set up and processed the employee's final payment within a supplementary payroll.

See Viewing the P45 Identification Results.

The P45 Report

If you produce P45s from the P45 Identification Results page, the system generates P45s for payees with a P45 Generation Flag set to Produce P45 or Calendar Override.

If you run P45s from the P45 page, the system runs the P45 process and automatically creates P45s for those payees identified who have the P45 Generation Flag set to Produce P45. You don't have the option to make changes to the list of payees identified when you run the report in this way.

The P45 report prints two version of the P45, a draft and a final report. If you select the Final Print? check box on the P45 Identification Results page or the P45 run control page, the report is final and the payee's P45 leaver information is updated. The Calendar Group ID and P45 Leave Date fields on the Maintain Tax Data page are automatically updated when the finalised P45 report is generated.

Note. The EDI P45 leaver transaction only transmits payee data if you have printed a final P45 for that payee. When you process the P45 leaver transaction, the system checks the P45 leaver information for a calendar group.

See Managing EDI Submissions.

Prerequisites

During implementation, you need to specify the changes to employees' job data that trigger a P45. To do this, you define the combinations of Action and Reason codes, which when inserted into an employee's job data, qualify the employee for a P45. Define the Action and Reason codes for P45s on the Process Action and Reasons page. PeopleSoft delivers actions and action/reasons as system data. You can add other actions and action/reasons that also trigger P45s.

Before running P45s you should also:

• Define the default destination for the P45L report.

  The process definition for the P45L report (GPGBP45L) includes a default Output Destination field that you need to set up for your system.

• Configure the UK Payroll Configuration bracket, GBR GB CONFIG CHAR.

  Use this bracket to define the job for the P45 output, and specify what P45 information the payroll administrator can update.

The Process Action and Reasons page, setting up the default destination and the UK Payroll Configuration bracket are discussed in the Setting Up Country Data chapter.

See Also

Setting Up Process Action and Reason Codes

Setting Up P45 Parameters

Pages Used to Create P45 Reports

Running the P45 Identification Process

Access the P45 Identification page.

Pay Entity, Pay Group, and Calendar Group ID

Select the group of employees for which you want to run the P45 Identification process. You can run the process for a particular calendar group or paygroup. If you complete the Pay Entity field only, all the paygroups within the pay entity are processed.

From Date and To Date

Enter the begin and end dates for the period. The process searches for payees with job data events within the period who do not have a final P45 printed. The process uses the P45 leaver information (displayed on the Maintain Tax Data page) to determine whether a payee has received a finalised P45. If the calendar group ID and P45 leave date have not been populated, the payee has not received a P45. See Entering Employee Tax Details.

Viewing the P45 Identification Results

Access the P45 Identification Results page.

Pay Group, Calendar Group ID, and Select Identified Payees	Select the group of employees for which you want to view the results of the identification process and click the Select Identified Payees button. You can restrict the list to a paygroup or calendar group. If you leave both Pay Group and Calendar Group ID blank, the system displays the results for all paygroups within the selected Pay Entity. If no employees are displayed when you click the Select Identified Payees button, this means that no employees were identified by the process in the paygroup or calendar group.
Output File Path	Click this link to access the Output File Path page where you can specify the directory in which the output of the P45 process is created. Note. This link is only displayed if the UK Payroll Configuration bracket (GBR BR CONFIG CHAR) is set up to allow you to specify the output directory. If the link is not displayed, the report is printed to the default destination defined in the GPGBP45.SQC. See Setting Up P45 Parameters.
Produce P45	Click this button to generate P45s for employees with the P45 Generation Flag set to Produce P45 or Calendar Override. The P45 generated is a draft version, unless you select the Final Print? check box.
Last Cal ID Processed	Displays the calendar ID in which the payee was last processed. Update this field if you select Calendar Override in the P45 Generation Flag field.
P45 Generation Flag	Select a value to determine whether the P45 is printed when you run the P45 report. Values are: Produce P45: To print the P45. This is the default value if the calendar is finalised. Suspend P45 Production: Suspends P45 production. Use this value if a payee's job data has been updated in error. When you select this value, the system displays the Notes link that enables you to add a reason for the suspension. A payee's P45 remains suspended until you change the P45 Generation Flag, Calendar Override: To use a different calendar ID for the selected employee. Select the calendar to use in the Last Cal ID Processed field. Delete P45 Production: Prevents production of the P45. Use this option to remove payees with a suspend status from the results table. Warning! Removing a payee from the results table doesn't stop the payee from being identified the next time you run the P45 Identification process. If the payee's job data has not changed, the employee is identified as requiring a P45 again. For example, if a payee has an incorrect termination date and you delete the payee from the results table, you must also update job data to correct this error. Unprocess/Unfinal Term Cal ID: Indicates that the employee has been terminated in job data but either of these conditions apply: The payroll process has not processed the termination event. The payroll process has processed the termination but the calendar (in which the termination was processed) is not finalised.
Final Print?	Select this check box to generate a final print of the P45. The system automatically selects this check box if the calendar is finalised. If this is not selected, the P45 report is a draft version (“Draft Report” appears in the report).
Notes	Click to access the P45 ID Results Notes page where you can add comments. This link only appears if you select Suspend P45 Production in the P45 Generation Flag field. Use the P45 ID Results page to record the reason for the suspension.

Running the P45 Report

Access the P45 page.

Pay Entity,Pay Group,Calendar Group ID, and EmplID	Select the employees for which you want to run the P45 report. You can run the process for a particular employee, calendar group or pay group. If you complete the Pay Entity field only, all the pay groups within the pay entity are processed.
From Date and To Date	Enter the begin and end dates for the period. See Entering Employee Tax Details.
Final Print?	Select this check box to generate a final print of the P45. When you select Final Print? the Calendar Group ID field on the Maintain Tax Data page is automatically updated, indicating that the P45 has been generated for the calendar group that appears in this field. When you ask for a final print, you can only reprint the P45 (if needed) from the same calendar group ID, even if other calculations take place.
Output File Path	Click this link to access the Output File Path page where you can specify the directory in which the output of the P45 process is created. Note. This link is only displayed if the UK Payroll Configuration bracket (GBR BR CONFIG CHAR) is set up to allow you to specify the output directory. If the link is not displayed, the report is printed to the default destination defined in the GPGBP45.SQC. See Setting Up P45 Parameters.

Printing P45s On Inland Revenue Stationery

To print your P45 reports on Inland Revenue approved stationery, you need to run the report using the P45 laser version of the report. Select either of these options from the Process Scheduler Request page:

• Process and Print P45 (process name GPGBP45J).

  This PSjob runs the P45 Identification process and both the SQR reports.

• Process and Print P45 — Batch (process name GPGBP45B).

  This PSjob runs the P45 Identification process and the P45L report.

Defining the Output File Path

Access the Output File Path page.

Enter the path for the output file created by the P45 process (GPGB_P45). Enter an absolute path, such as c:\temp\, or a relative path of the form: \\machinename\temp\.

If you have previously entered a path the system displays that path as a default.

Viewing P45 Information Online

This section discusses how to view an employee's P45 information.

Page Used to View a P45

Viewing P45 Information

Access the View P45 page.

Provisional P45 Information

This group box is displayed if the employee has not been terminated. It lists the most current pay and tax information for the current tax year.

Finalized P45 Information

This group box is displayed if the employee has been issued with a P45. It lists the pay and tax information that was printed on the final P45.