an introduction to real time information (rti)
DESCRIPTION
This presentation will cover 4 main areas: 1 - The implications of RTI for employers 2 - The effects of RTI on your payroll process 3 - The implications of bad data quality 4 - The next steps to take when preparing for RTITRANSCRIPT
www.iris.co.uk/[email protected]
0844 815 5700
An introduction toReal Time InformationHosted by: Mark Shaw – IRIS RTI Expert
www.iris.co.uk/[email protected]
0844 815 5700
An Introduction to IRISWith over 30,000 customers and more than 30 years experience, IRIS is one of the UK’s largest private software houses with a wide range of specialist solutions.
• The No 1 provider to UK accountancy practices
• The No 1 provider of payroll and accounts to GPs
• The No 2 provider of payroll & HR software solutions providing payslips to around 10% of the of the UK workforce
• The market leader in Real Time Information having delivered full RTI Training Seminars to over 4000 payroll professionals in 2012 already
• Our clients range from small start ups to large blue chip companies
www.iris.co.uk/[email protected]
0844 815 5700
• What is RTI?• Implications of RTI to an employer• How does RTI affect the employer• Data Quality and Implications of poor data quality?• Facts and Figures• Summary• How IRIS can assist you?• Next Steps
Agenda
www.iris.co.uk/[email protected]
0844 815 5700
• Real Time Information or RTI is the single biggest legislation change to payroll that HMRC have introduced since 1944.
• RTI is a new system for reporting pay, tax, National Insurance and other details to HMRC. Rather than submit these details at the end of the tax year through a P35/P14 return, HMRC will collect this data every time a payment is made to the employee.
• As an employer you will still be responsible for all tax deductions and calculations but instead of submitting this data once a year to HMRC, you will be required to return year to date figures at the same time as payment is made to your employees, be that weekly, fortnightly or monthly.
• If you employ less than 5000 employees you will need to be RTI compliant by April 2013.
What is RTI?
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• All employers must go through a one-off ‘alignment’ process in order to synchronise their data with HMRC. This is achieved by sending the first Full Payment Submission or if appropriate, an Employer Alignment Submission
• Employers and pension providers will tell HMRC about Tax, National Insurance contributions and other deductions on or before pay day, be that weekly, monthly or any other period via a Full Payment Submission
• Any adjustments to the expected monthly payment that an employer is making to HMRC will be reported via an Employer Payment Summary
• Year-end process will be different
• New starters will be reported via the Full Payment Submission
• Leavers will be reported via the Full Payment Submission
Implications of RTI for an employer
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• Employer will return year to date figures each time you run your payroll
• This means the HMRC know the exactly how much you owe in tax, NIC’s and student loan liability
• There will be a single process tying information and payment together – you’ll send information about the payment to HMRC at the time you pay your employee
• No end of year process; means no P14s or P35s
• New process for Starters & leavers however P45 remains
• Accurate and timely information from employers let HMRC collect right money at the right time
How does RTI affect the employer?
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0844 815 5700
How does RTI affect the employer?Payment to HMRC
Payment date to HMRC remains unchanged:19th or 22nd of following month or special arrangement if in place(e.g. quarterly payment)
Where there are adjustments to sum total of deductions on the FPS (statutory payments claimed, CIS deductions suffered etc.), these will be reported on an ‘Employer Payment Summary.’
If no adjustments are necessary for items like SMP Recovery, an Employer Payment Summary will not be sent to HMRC
www.iris.co.uk/[email protected]
0844 815 5700
Data Quality is critical for HMRC and for the operation of PAYE
For RTI, the key Data Quality issues to be addressed are those whichimpact HMRC’s ability to:
· Match RTI submissions to the right individual record, and in particular to a NINO account to support Universal Credit and administering of State Pension
· Match RTI submissions to the right employment
Data quality in the context of RTI
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For employers:
Increased contact from employees around their tax affairs Higher volumes of tax code update rejection Impact on readiness for RTI Submission could be rejected depending on missing data
For employees:
Taxed the incorrect amount in-year Over or under-payments being generated in future Accuracy of Universal Credit calculations and entitlement to State Pension
Implications of poor quality data
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0844 815 5700
Facts and Figures
HMRC’s estimated migration cost onto RTI of £85m (£50 per PAYE scheme), which includes £35m on checking and amending data and £50m on training and familiarising staff with the new processes, does not include software upgrade and purchase costs
With RTI and pensions reform hitting at the same time, the issue will be exacerbated, placing pressure on software providers with many customers requiring upgrades and training in the same time period. This will mean that training resources and consultancy will be at a premium in Q1 of 2013
The APPTG found that, for example, up to 23% of micro businesses do not have any payroll software in place and so will be forced to buy new systems
A staggering 33 per cent of payroll & bureau managers admitted to having heard of the HMRC RTI concept but were “unsure of how it worked”
www.iris.co.uk/[email protected]
0844 815 5700
Summary If you employ less than 5000 employees you will need to be RTI compliant by April
2013
RTI means the HMRC know the exactly how much you owe in tax, NIC’s and student loan liability
Data Quality is critical for HMRC and for the operation of PAYE
Submission could be rejected depending on missing data
Fines could be incurred due to late submissions
Disgruntled workforce due to employees being taxed the incorrect amount in-year and over or under-payments being generated in the future
www.iris.co.uk/[email protected]
0844 815 5700
How IRIS can assist you
RTI Health Check & Advice
Line
RTI Ready Payroll
Software
RTI Web Seminar
(free)
RTI Training
SeminarsRTI
Telephone Support for RTI
Software
RTI Consulting
Services
RTI Managed
Payroll Service
IRIS:#1 RTI Solution Provider in the UK
Managed RTI
Payroll Service
RTI Ready Payroll
Software
RTI Health Check &
Advice Line
RTI Web Seminar
RTI Training courses
Telephone Support for
RTI Software
RTI Consulting
Services
www.iris.co.uk/[email protected]
0844 815 5700
Next steps Book on an 3 hour IRIS RTI Seminar - £150
Book an online demonstration to see IRIS RTI Ready payroll software
Special offer - Software + RTI Seminar (quote RTI Podcast when you call the sales line)
Don’t want the headache let us run your payroll for you – request a Managed Payroll Quote
For more information or to book on a seminar please contact 0844 815 5700 or alternatively email [email protected]
www.iris.co.uk/[email protected]
0844 815 5700
Next steps
Call IRIS Sales on 0844 815 5700
Book on an 3 hour IRIS RTI Seminar
Book an online demonstration to see IRIS RTI Ready payroll software
Special offer - Software + RTI Seminar (quote Slideshare when you call)
Don’t want the headache let us run your payroll for you - request a Managed Payroll Quote