Defining ECONs and SCONs
To define ECONs and SCONs, use the ECON Table GBR component (GPGB_ECON_SETUP) and the SCON Table GBR component (GPGB_SCON_SETUP). This topic provides an overview of ECONs and SCONs and lists the pages used to define ECON and SCON values.
|
Page Name |
Definition Name |
Usage |
|---|---|---|
|
ECON Table GBR Page |
GPGB_ECON_SETUP |
Define the ECON values for your organization. You must ensure that the ECON values conform to HMRC specifications. Select the Active check box for the ECON values that are in use. Users can select active ECON values only from the Pay Entity Details GBR page or the NI page. |
|
SCON Table GBR Page |
GPGB_SCON_SETUP |
Define the SCON values for your organization. You must ensure that the ECON values conform to HMRC specifications. Select the Active check box for the SCON values that are in use. Users can select active SCON values only from the Pay Entity Details GBR page or the NI page. |
Before you enter National Insurance details for your payees, you need to define employer contracted out numbers (ECONs) and scheme contracted out numbers (SCONs) for your organization.
In the United Kingdom, employees who are members of a pension scheme that meets certain criteria are contracted out of the state second pension and therefore entitled to a rebate on their Class 1 National Insurance Contributions (NICs). HM Revenue and Customs (HMRC) tracks these pension schemes using ECON and SCONs. Employers that set up such pension schemes are issued with ECONs. COMP (Contracted Out Money Purchase) schemes are also issued with an SCON.
In Global Payroll for the UK, you define all the ECON and SCONs for your organization on the ECON Table GBR and SCON Table GBR pages. You select a default ECON for each pay entity on the Pay Entity Details GBR page.
Payees are associated with ECON and SCONs when you enter their National Insurance details on the Maintain NI Data GBR page. The NI Category code determines whether an ECON or SCON is required (you can also use both). The system displays the pay entity ECON, but you can override this default.