1. Administering Payroll for the United Kingdom
  2. Run Full Payment Submission Process

Run Full Payment Submission Process

The Full Payment Submission (FPS) reports to HMRC about how much you've paid your employees and what deductions you've made for Pay As You Earn (PAYE), National Insurance Contributions (NICs), and student or postgraduate loans.

This process produces a Full Payment Summary (FPS) file for submission to HM Revenue and Customs (HMRC). This process also updates employee records to indicate that payment data was sent, and produces a Reconciliation Report. The FPS covers all payments regardless of the payment method (such as BACS, cheque) and the year-to-date amounts.

You can run this process for a specific prepayment process. HMRC requires that employers send an FPS each time they pay an employee, whether the payment is part of your normal pay cycle or an additional payment made between paydays. If no payments were made to any employee in any one period for a TRU, then FPS isn’t required. However, you must submit an Employer Payments Summary (EPS) with the No payment made indicator for such periods.

You must also use the FPS process to generate Earlier Year Update (EYU) submissions. You can only use the EYU process for tax years up to and including the tax year 2018-2019. After this period, you must use the FPS process to submit any earlier year submissions.

Use the Submit a Process or Report task from Payroll to run the Full Payment Submission for Tax Year Ending <Year> process.

Before You Start

Before you run this process, you must have completed these activities:

  • Defined this information at the tax reporting unit level (Manage Legal Reporting Unit HCM Information task, UK Tax Reporting Unit Details page):

    • Employer Accounts Reference Number: Required for all employers.

    • Service Company Indicator: Required for service companies only.

    • Self Assessment unique Identifier: Required for employers who have registered for self-assessment.

    • Corporate Tax Reference: Required for employers who have been issued a Company Unique Taxpayer Reference.

    You must have defined these during initial setup or initialization into the Real Time Information (RTI) program.

  • Defined PAYE component details, as applicable, on the Statutory Deductions calculation card (Manage Calculation Cards task) for each employee included in the FPS. Here are some key aspects regarding the PAYE component details:

    • Number of Periods Covered: If you set this to any value other than 1, the process resets it back to 1 when it updates the employee record.

    • Number of Hours Worked: If you don't provide a value, the process retrieves this information from the assignment.

    • Report NI YTD: You must have selected this option for only one PAYE component on the deduction card at any given time. Otherwise, the payroll run and the FPS process will fail.

  • HMRC requires that you provide information about the partners of employees who have been entered on Shared Parental Pay (ShPP) claims. Complete these fields for each partner (Person Management task, View More Details link for Gender and Marital Status):

    • Partner First Forename, Second Forename, and Surname

    • Partner National Insurance Number

  • Run the prepayment process for the payments being reported.

Process Parameters

Parameter

Description

PSU

Payroll statutory unit for which to run the process.

TRU

Tax reporting unit, within the selected PSU, for which to run the process.

Unique Part Identifier

A unique part ID, if you're generating the FPS file in sub files. This flow will include only those employees whose statutory deduction component is associated with this unique part ID using the TRU association.

Payroll

Payroll for which to run the process.

Prepayment

Prepayment to report. It's the value selected in the Unique Part Identifier parameter. It limits the prepayments that can be selected to those containing employees with the specified unique part ID (through statutory deductions card's association with the TRU).

Previous Year Adjustments Select Yes for EYU Style.

Select No for FPS Style.

Submission Type

Indicates whether the output file is for testing. If you select Test, the process inserts a test indicator in the FPS file, which you can submit to HMRC for validation before submitting the live submission. In this mode, the process doesn't update any employee data, but it validates the payment records and produces a Reconciliation Report. When you run the process in this mode for a prepayment, it doesn't affect the values in the prepayment parameter.

After you've verified the test submission, run the process again and select Live as the submission type. In this mode, the process archives the data, generates the reports and updates data to their default values or marks them as sent. Running the process in Live mode means a payroll relationship group can't be used. If you run the process for a prepayment without specifying a TRU, you can't run the FPS for that prepayment again,. It won't be displayed in the prepayment list of values.

Note: You can run the process in Live mode only once for each prepayment and TRU combination.

Report HMRC Payroll ID Migration Change

Notification to HMRC in the FPS file that you've migrated employee records from the old works number to the HMRC Payroll ID. HMRC can match the old and the new IDs to ensure the employee records are reconciled. After the previous HMRC payroll ID is reported in the FPS file, it isn’t reported again. The default value is set to Yes, you must use this for the first Live run you submit to HMRC.

Before your first Live run that you submit to HMRC, set this to No.

Final Submission

Indicates whether this FPS is the final submission for the year or for a ceased PAYE scheme.

Date Scheme Ceased

Date the scheme ended, if this is the final submission for a ceased scheme.

Process Configuration Group

Identifies the rules for processing, such as logging and number of threads.

Late PAYE Reporting Reason

Select one of the notional payment such as payment to expatriate by third-party or overseas employer, employment related security, or others.

Payroll Relationship Group

List of Payroll Relationship Groups. Use this to limit the employees that should be included in a Test mode FPS run.

You can't use this for Live submission.

Report Termination Up To Date

Date after which the process won’t include unpaid terminations with leaving dates after this date. Use this to avoid including large number of termination records when submitting FPS.

Process Results

This process produces an FPS file and a Reconciliation Report. To view the process output after the process is complete:

  1. On the process checklist, click Run Full Payment Submission task.

  2. On the Statutory Reports page, select the Processes and Reports tab and then click the icon in the View Results column.

  3. On the View Results window, click the report or file name.

    Note: The Live FPS process updates the PAYE Details calculation component to indicate that reporting has been completed and hence won't be reported again. Even though it's possible to roll back a Live submission, the rollback process doesn't roll back the updates to the PAYE Details component. Use the Live submission type for the process only after the test submission has been thoroughly checked and verified.
Live

  • It archives the data, generates the reports, and updates some data to their default values or marks them as sent.

  • If you run this process for a prepayment without the TRU, you can't run the FPS for that prepayment again. It won't show up in the prepayment parameter list of values for selection.

  • If you run this process for a prepayment with the TRU, you can run the FPS for that prepayment again only if you specify a different tax reporting unit in the parameter.

  • You can't use the payroll relationship group parameter in this mode.

    Note: The Live FPS process updates the PAYE card component to indicate that reporting has been completed and hence won't be reported again. Even though it's possible to roll back a Live submission, it's recommended that you first produce a Test file and examine for errors. You should only create a Live file when no errors are produced from the test file.
Test

  • It completes an archive and generates the reports without updating data.

  • If you run this process for a prepayment, there's no effect on prepayment parameter list of values.

  • You can use the payroll relation group in this mode.

FPS Audit Report

Use the report to verify the employees and amounts reported in the FPS. The report groups the records by TRU and displays a section for each employment. It shows payment totals by TRU and grand totals for all TRUs.

The Above Upper Earnings Limit (AUEL) period-to-date and tax year-to-date amounts are also reported here, even though they aren't in the FPS XML file itself.

FPS File Download

Save the FPS file to a location accessible to the third-party software that sends the file to HMRC. (The file transmission is done outside of this process.)

Note: The employees that are included in a prepayment but not reported due to not having any earnings in the period are reported in the FPS Process Results. These employees will be reported on the Errors and Warnings report even if there are no other warnings or errors detected during the process. The report displays a warning message for employees who are deemed as nonreportable, and not included in the FPS XML output file and the Audit Report. You can filter the results in the errors and warnings report by setting the Employees Included in Output column to No.

Action Parameter Setup

You must run the process by explicitly setting these action parameters with a Payroll Process Configuration Group:

Table with Base Details for Action Parameter Setup

Base Name Name Value
ORA_MULTITHREADED_XML Multithreaded XML Generation for Extracts Y
ORA_PAY_EXT_TRNS_USE_XDK_DOM Transform XML without using BIP memory in extracts. Y_MEM
ORA_XML_DATA_SOURCE XML Data Source N
ORA_PAYSLIP_SKIP_BI_SERVER Skip BI server for online payslip N

Submission to HMRC

Typical, in the HMRC File Submission process, you can only select FPS files from FPS flows that have succeeded.

To submit an FPS file which had errors, and so the flow would have a functional error, you can update the FPS flow with errors to be complete for HMRC submission.

To do this:

  • Highlight the flow task Run Full Payment Submission
  • Select Actions > Skip.

This sets the flow to Complete. You can then select this FPS in the HMRC submission flow.

Note: The act of marking the flow complete can only be done by the original submitter of the flow.

FPS and HMRC Submission Deadline

HMRC allows normal FPS submissions only within a certain time frame. For more information, see the HMRC website.

If you make a submission after the deadline without a valid late reporting reason, you might be subject to financial penalties.

If you're reporting late for a set of employees, you must:

  • Rollback the corresponding HMRC Submission process.
  • Rollback the FPS run.
  • Add the late reporting reason into the employee’s PAYE component, in the field Late PAYE Reporting Reason as correction to earlier submission.
  • Rerun the FPS process.

If you're reporting late for all the employees in a submission, use the late reporting reason parameter to the FPS flow, and rerun the FPS.

If you wish to make a corrective submission, after the submission deadline, with the agreement of HMRC you can use the reporting reason of H – Correction to Earlier Submission.

FPS and HMRC Maximum File Size

HMRC currently only allow submissions with file sizes up to 23MB. If a submitted file it too large, HMRC will return this error that you see in the return receipt:

2001: The document exceeds the maximum permitted size
You can resolve this by separating the FPS file into smaller files using the Unique Part Identifier option.