Automatic Calculation Card Creation

The New Hire process automatically creates a Statutory Deductions calculation card and a Pensions Automatic Enrolment calculation card for each new employee. The value of your country setting on the Features by Countries or Territories page is either Payroll or Payroll Interface.

Use the Personal Calculations task to view and update the card as needed.

This topic explains these aspects of automatic calculation card creation:

• Default values for calculation components and component details

• Default association and association details

• Automatically created element entries

Note: Automatic calculation card creation occurs only when you hire an employee, not a pending worker or nonworker. Converting a pending worker to an employee creates the calculation cards at that time.

Statutory Deductions Card Components

The automatically created card contains these components and component details:

• One Pay As You Earn record with the effective start and end dates. Depending on the year and tax reporting unit, the default values may change. Here are some examples of the values on the Basic Info section:

  Basic Info	Example
  HMRC Payroll ID	System-generated PAYE component ID
  Tax Code	750L
  Tax Basis	Cumulative
  Previous Taxable Pay on P11	750
  Previous Tax Paid on P11	110
  Authority	P45
  Authority Date	Date
  Last Update Process date	Date
  Issue Date	Date

  The other sections under the PAYE Details included are:

  • Reporting Data: Includes details such as number of periods covered, date of leaving as reported to HMRC, and late PAYE reporting reason.

  • P45: Includes P45 action and date when P45 was issued manually, if applicable.

  • Filing status: Includes various filing details such as date of leaving as reported to HMRC, P45 filing date, and previous HMRC Payroll ID.

  • Assignments: Includes details of which assignments are associated with this PAYE component with the assignment number.

• One NI component, with the effective start and end dates with these reference values:

  Component Detail	Default Value
  NI Category	A
  Pension Basis	Not contracted out

You can modify the default values as needed on the employee's card.

Note: You can specify the default values to use for a specific tax reporting unit (TRU) or payroll statutory unit (PSU). Use the Legal Entity Calculation Cards task to set PSU-level default values. Use the Legal Reporting Unit Calculation Cards task to set TRU-level default values.

Pensions Automatic Enrolment Calculation Card Default Values

The automatically created pensions calculation card contains one component, the Pensions Automatic Enrolment component. This component contains a Pensions Automatic Enrolment component details record. Only one field contains a predefined default value:

Field	Default Value
Employee Classification for Pensions	Not Yet Assessed

Statutory Deductions Card Default Associations

If you specify a TRU in the Payroll Details section on the Hire an Employee: Employment Information page, the new hire process creates:

• An association to that TRU on the Statutory Deductions calculation card automatically.

• Association details, linking the PAYE and NI components to the new hire's assignment.

If you don't specify a TRU during the new hire process:

• You must add a TRU association to the Statutory Deductions card manually and create association details for the PAYE and NI components.

• You can't calculate or process payroll deductions for the employee until you provide this information.

Pensions Automatic Enrolment Card Default Associations

If you specify a TRU in the Payroll Details section on the Hire an Employee: Employment Information page, the new hire process:

• Doesn't create associations linking specific assignments to the pensions automatic enrolment component. By default, all earnings for all assignments for the payroll relationship are considered during the pensions automatic enrolment assessment.

• You can create associations manually later. You can also create additional pensions automatic enrolment components on the card, and associate specific earnings groups to your pension components, as needed.

  Note: If you add the pension components to an existing pensions calculation card, you must associate the component with a tax reporting unit. You must also create association details for both the new and the original pension components, linking each with the appropriate assignments.

If you don't specify a TRU during the new hire process, note these aspects:

• If your organization has only one TRU, you don't need to create a TRU association on the Pensions Automatic Enrolment card manually; the pensions automatic enrolment assessment process obtains the necessary default values from the PSU-level pensions automatic enrolment card or, if it exists, the TRU-level card.

• If your organization has multiple TRUs, you must associate a TRU to the pension component manually.

Automatically Created Element Entries

The new hire process creates element entries automatically for these elements, provided that you have defined element eligibility and the employee meets the eligibility criteria:

• Tax and NI element

• Pensions Automatic Enrolment element