PeopleSoft Global Payroll for the United Kingdom 9.1 PeopleBook

Administering Share Save and Share Buy Schemes

This chapter provides an overview of share scheme administration and discusses how to:

Enter employee share scheme information.
Process share scheme contributions.

Understanding Share Scheme Administration

This section lists prerequisites and discusses:

Delivered share scheme deductions.
Delivered share scheme earnings.
Viewing delivered elements.

Prerequisites

Before you can enter and process share scheme contributions, you must:

Set up share scheme types, share scheme limits, and share scheme definitions.
Set up your processing structure to include share scheme processing.

Two sections are delivered for share schemes that are included in the payroll process list. You can use the delivered structure or create your own sections and process lists.

See Also

Setting Up Share Schemes and Loans

Delivered Share Scheme Deductions

These deduction elements are delivered for share scheme contributions that you can use as a basis when creating your own elements:

SS DD SVE AA (share save actual amount).

Use this deduction for the actual amount deducted for the pay period. Depending on payees' level of net pay, the actual amount deducted may differ from the contribution defined on the Save page in the Assign Share Scheme GBR component.
SS DD SVE NA (share save normal amount).

Use this deduction for the full contribution for the pay period if you need to record and report the full contribution due as well as the actual amount deducted. This is optional. The amount is defined at payee level on the Save page.
SS DD BUY AA (share buy actual amount).

Use this deduction for the actual amount deducted for share buy contributions, where the contribution is based on a fixed amount. Depending on payees' net pay, the actual amount may differ from the contribution defined on the Buy page in the Assign Share Scheme GBR component.
SS DD BUY NA (share buy normal amount).

Use this deduction for the full contribution for the pay period if you need to record and report the full contribution due as well as the actual amount deducted. This is optional. This amount is defined at payee level on the Buy page.
SS DD BUY AP (share buy actual percentage).

Use this deduction for the actual percentage of earnings that is deducted for share buy contributions, where the contribution is based on a percentage. Depending on payees' net pay, the percentage actually deducted may differ from the contribution defined on the Buy page in the Assign Share Scheme GBR component.

The deductions that are used for share scheme deductions are specified on the Define Share Schemes GBR page. Your organization may use different deductions for each share scheme ID or use the same deduction for multiple share schemes.

Delivered Share Scheme Earnings

These earnings elements are delivered for share scheme refunds:

SS ER SVE CR (share save contribution return).

Use this earning for refunding payees' contributions and bonus amounts. This earning is not taxable because the contributions are post-tax deductions.
SS ER SVE RB (share save residual balance).

Use this earning for refunding any balance that remains after purchasing shares. This earning is not taxable because the contributions are post-tax deductions.
SS ER BUY CR (share buy contribution return).

Use this earning for refunding payees' contributions. This may occur when the employee leaves the scheme and deductions are continued after the stop date due to late notification. This earning is taxable because the contributions are pre-tax deductions.
SS ER BUY RC (share buy residual cash).

Use this earning for refunding any balance that remains after purchasing shares. This earning is taxable because the contributions are pre-tax deductions.
SS ER BUY TX (share buy taxable sale).

Use this earning to record share buy sales that are subject to tax.
SS ER SVE NT (share buy non-taxable sale).

Use this earning to record share buy sales that are non-taxable.

There is no automatic processing associated with these earnings. If you want to process refunds use positive input to specify the payee and amount.

See Also

Working with Positive Input

Viewing Delivered Elements

The PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for the United Kingdom. Instructions for running the query are provided in PeopleSoft Global Payroll 9.1 PeopleBook.

Entering Employee Share Scheme Information

This section discusses how to

Enter employee share save information.
Enter employee share buy information.
Enter contribution holidays.

Pages Used to Enter Share Scheme Information

Page Name	Definition Name	Navigation	Usage
Save	GPGB_EE_SS_SVE	Global Payroll & Absence Mgmt, Payee Data, Assign Share Schemes GBR, Save	Enrol payees in a share save scheme. Note. If your organization has eligibility rules associated with share schemes you must check that payees meet those criteria before enrolling them. Global Payroll for the UK doesn't perform any eligibility checking.
Contribution Holiday	GPGB_EE_SS_HOL_SEC	Click the Holiday link on the Save page.	Enter the begin and end dates and duration of contribution holidays. These are periods when payees suspend contributions to share schemes. The share save scheme definition defines whether contribution holidays are allowed, the maximum duration of holidays and how contributions that were due during the contribution holiday period are collected.
Contribution Holiday Notes	GPGB_EE_SS_CMT_SEC	Click the Add Notes link on the Contribution Holiday page.	Enter comments about the contribution holiday.
Buy	GPGB_EE_SS_BUY	Global Payroll & Absence Mgmt, Payee Data, Assign Share Schemes GBR, Buy	Enrol payees into a share buy scheme. Note. If your organization has eligibility rules associated with share schemes you must check that payees meet those criteria before enrolling them. Global Payroll for the UK doesn't perform any eligibility checking.
Share Save Holidays GBR	GPGB_EE_SS_HOL	Global Payroll & Absence Mgmt, Payee Data, Share Save Holidays GBR, Share Save Holidays GBR	Enter the begin and end dates and duration of contribution holidays. These are periods when payees suspend contributions into share save schemes. The share save scheme definition defines whether contribution holidays are allowed, the maximum duration of holidays and how contributions that were due during the contribution holiday period are collected.

Entering Employee Share Save Information

Access the Save page (Global Payroll & Absence Mgmt, Payee Data, Assign Share Schemes GBR, Save).

Scheme ID

Select the share save scheme that the payee wants to join. The system displays only those share schemes defined with a share scheme type of share save that are open for enrolment. If the Enrolment Locked check box is selected on the Define Share Schemes GBR page, the share scheme is not available in this field.

Begin Date and End Date

Enter the date that the payee joined the share scheme and the date that the scheme will cease. The default end date is the scheme end date. If employee override is allowed and this applies to the payee, enter the revised end date

Duration

Displays the duration (in months) of the share save scheme you selected. If the share scheme definition allows employee override, you can modify the default duration.

See Setting Up Share Scheme Definitions.

Share Save Schemes — Contributions

Access the Contributions tab.

Account Number	Enter the payee's account number issued by the share system administrators.
Amount	Enter the payee's contribution to the scheme each pay period. The amount must be within the minimum and maximum contributions defined for the share scheme. If payees are enrolled in more than one share save scheme, their total contributions across all share save schemes must be within the statutory limits defined on the Share Scheme Limits GBR page. See Pages Used to Define Share Schemes. See Setting Up Share Scheme Limits.
Holidays	Displays Yes or No to indicate whether contribution holidays already exist for the payee. If the field displays No and the Holiday link doesn't appear, the scheme doesn't allow contribution holidays.
Holiday	Click this link to access the Contribution Holiday page where you can view and add contribution holiday dates. This link is only displayed for schemes that allow contribution holidays.

Entering Employee Share Buy Information

Access the Buy page (Global Payroll & Absence Mgmt, Payee Data, Assign Share Schemes GBR, Save, Buy tab).

Scheme ID

Select the share buy scheme that the payee wants to join. The system displays only those share schemes defined with a share scheme type of share buy.

Begin Date and End Date

Enter the date that the payee joined the share scheme. You only enter an end date at such time as the payee withdraws from the scheme.

Share Buy Schemes — Contributions

Access the Contributions tab.

Account Number	Enter the payee's account number issued by the share system administrators.
Contribution Basis	Displays the contribution basis defined for the share scheme: Amount: If contributions are based on a fixed amount. Percent: If contributions are based on a percentage of earnings.
Contribution Amount	Enter the payee's contribution to the scheme each pay period. The amount must be within the minimum and maximum amount specified in the share scheme definition. If payees are enrolled in more than one share buy scheme, their total contributions across all share buy schemes must be within the statutory limits defined on the Share Scheme Limits GBR page. This field is available if the Contribution Basis is Amount.
Percentage Value	Enter the percentage of earnings that are contributed to the share scheme each pay period. The percentage must be within the minimum and maximum percentage specified in the share scheme definition. If payees are enrolled in more than one share buy scheme, their total contributions across all share buy schemes must be within the statutory limits defined on the Share Scheme Limits GBR page. This field is available if the Contribution Basis is Percent. The earnings on which this percentage is based is defined in the share scheme definition. Rules for share schemes are defined on the Define Share Schemes GBR page. See Pages Used to Define Share Schemes.

Note. You cannot enrol employees in more than one share buy scheme with the same contribution basis (fixed amount or percentage). However, employees can be enrolled in two share buy schemes if one is based on a fixed contribution amount, and the other scheme is based on a percentage of earnings.

Entering Contribution Holidays

Access the Share Save Holidays GBR page (Global Payroll & Absence Mgmt, Payee Data, Share Save Holidays GBR, Share Save Holidays GBR).

Holiday Details

Enter the details of the payee's contribution holidays. Where contribution holidays are permitted, and the share scheme has a maximum total duration for contribution holidays, the system checks that the payee has not exceeded this limit.

See Pages Used to Define Share Schemes.

Begin Date and End Date	Enter the start and end date for the period when the payee's share scheme contributions stopped.
Duration (months)	Displays the number of months that the payee is not contributing to the share scheme when you click Save. The duration is rounded to two decimal places, based on an average month of 30.4166 days.

Processing Share Scheme Contributions

Share scheme deductions are calculated and processed in the normal payroll process. If a payee contributes to more than one share scheme, the system processes the deductions in order of the payee's start date. The scheme that the payee joined first is processed first.

Share save and buy contributions are processed separately:

Share buy scheme contributions are pre-tax deductions and processed before statutory deductions.
Share save scheme contributions are post-tax deductions and processed after statutory deductions for tax, National Insurance (NI), court orders, and student loans.

Share scheme processing checks:

Whether contributions are suspended.

The rules of the share scheme define whether contributions are suspended during maternity leave. For share save schemes, contributions can also be suspended for contribution holidays if these are permitted by the rules of the scheme.
Whether the payee was terminated during the pay period.

The rules of the share scheme determine how terminated payees' contributions are processed. There are three options: process the contribution as normal, process the contribution only if the payee left on the last date of the pay period, or do not process contributions.
Whether payees' pay is sufficient to process the full contribution.

The system checks the GBR AC NETT SEG accumulator to determine whether there is sufficient pay to deduct the full contribution amount. The rules of the share scheme defined on the Define Share Schemes GBR page determine what happens when net pay is not sufficient to take the full amount. There are two options: deduct zero, or deduct the maximum amount available.
Total contributions are within the statutory limits.

When you set up payees' contributions, the system checks that the amount is within the limits defined for the scheme. However, when you process payroll, the system also checks that the total contributions are within the HM Revenue and Customs (HMRC) limits for share save and buy schemes defined on the Share Scheme Limits GBR page. If the total contributions exceed statutory limits, the system does not process the contribution that would exceed the limit.

Multiple Resolutions of Share Scheme Deductions

Multiple resolutions of share scheme deductions are generated by multiple assignments of share scheme deductions as follows:

The Define Share Schemes GBR page identifies the deductions associated with a share scheme.
The system automatically assigns the share scheme deductions to a payee when you enrol the payee in a share scheme.
If you enrol a payee in multiple share schemes that use the same deduction, the system assigns the deduction multiple times.
Payroll processing resolves the deduction once for each assignment.

Multiple resolutions of elements is explained in PeopleSoft Global Payroll 9.1 PeopleBook.

See Also

Setting Up Share Schemes

Managing Multiple Resolutions of an Earning or Deduction

Scheme ID	Select the share buy scheme that the payee wants to join. The system displays only those share schemes defined with a share scheme type of share buy.
Begin Date and End Date	Enter the date that the payee joined the share scheme. You only enter an end date at such time as the payee withdraws from the scheme.