Calculation Value Definitions for Statutory Deductions

The payroll process provides two predefined calculation value definition groups: NI and PAYE. Each group contains a set of predefined calculation value definitions. This topic helps you to understand the role these values play in statutory deduction calculations.

You can't edit predefined calculation value definitions. Oracle provides updated rate information for statutory deductions as it becomes available. Use the Calculation Definitions task in the Payroll Calculation work area to view predefined values.

NI Calculation Value Definitions

Calculation value definitions in the NI range group define rates or amounts for these:

• Rates for NI contribution categories. Separate employer and employee value definitions exist for each category.

• Contracted-out rates for employees who have left the additional State Pension and joined a contracted-out pension. Separate value definitions exist for employee rates and Contracted-Out Salary Related (COSR) rates. A set of employee and employer Not-Contracted Out value definitions also exists.

• Employee rebate rates and employer rebate rates for COSR

• Employee reduced rates

• Employee upper limit rates

• Weekly, monthly, and yearly thresholds for:

  • Primary Thresholds (PT)

  • Secondary Thresholds (ST)

  • Lower Earnings Limit (LEL)

  • Upper Accrual Point (UAP)

  • Upper Earnings Limit (UEL)

• No contribution rate (contribution amount of zero)

PAYE Calculation Value Definitions

Calculation value definitions in the PAYE range group define rates or amounts for these::

• Regular income tax rates that vary based on the deductible amount. The value definition name "Band" refers to the bands or ranges of values to which different rates apply.

• Default Tax Basis and Default Tax Code used by the New Hire process when creating a Statutory Deductions calculation card for a new employee

• Emergency tax codes for employees whose tax code is unknown

• K limit rates for employees with a tax code prefix of K

• Rate 2 through Rate 4, which represent the basic, higher, and additional tax rates

• A tax amount of zero, which represents the no tax rate for NT, NI, and FT tax codes