1. Administering Payroll for the United Kingdom
  2. Examples to Create Statutory Deductions Calculation Cards Manually

Examples to Create Statutory Deductions Calculation Cards Manually

The new hire process automatically creates a Statutory Deductions calculation card for new employees, if your country extension is set to either Payroll or Payroll Interface.

However, you may need to create calculation cards manually in these scenarios:

  • An employee takes on an additional assignment with a different tax reporting unit (TRU) than the one associated with their main assignment.

  • A company upgrades their product usage from HR only to Payroll, and existing employees don't have Statutory Deductions calculation cards.

  • A company transfers some or all of its employees from one TRU or Pay As You Earn (PAYE) scheme to another TRU or PAYE scheme.

In all examples, use the Calculation Cards task in Payroll to create the card.

Additional Assignment for a Different TRU

If an employee with an existing assignment and associated calculation card takes on an additional assignment that reports to a different TRU, you must create a new calculation card. On the new card, add NI and PAYE components and component details, as appropriate for the employee. Associate the Additional Information component with the new TRU and associate the PAYE and NI components with the new assignment. Note that the employee will receive two different payslips, one for each assignment.

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In this scenario, you would need to create a new calculation card for each employee or load the data using a batch upload process.

Transfer of Employees to New TRU

If your company is transferring all or some employees to a new TRU and PAYE scheme, follow these general steps:

  1. Create the new TRU and provide the new PAYE Reference for the TRU registration.

  2. On the existing calculation cards, set the end date for all association details and then do the same for the TRU association.

  3. For each transferring employee, create a new calculation card. Add NI and PAYE components and component details, as appropriate for the employee. Define an association to the new TRU and association details for the PAYE and NI components.

Note: Only one HMRC registration can be active at any given time. If you need to change the PAYE Reference on an existing TRU registration, you can do this at the start of a new tax year by ending the old registration at the end of the previous year and creating a new registration for the new tax year. You can't do this in the middle of a tax year.