PAYE/NI & Statutory Payments

Date Table Becomes Effective

The date the table becomes effective. This is for reference purposes only. The tax year and period number for the payroll control whether the table is current or not. The table becomes current when its tax year matches the entry in the Current Tax Year box on the Payroll Options form, and the week or month number matches the one you enter when you use the Calculation command.

Year Number for Table

The tax year when the table becomes effective. The table becomes current when the entry in this box matches the entry in the Current Tax Year box on the Payroll Options form, and the week or month number matches the one you enter when you use the Calculation command.

PAYE % Rate & Bandwidths

The percentage rates of PAYE that correspond to the cumulative bandwidth. Up to 20 different rates can be entered. Take care to ensure these figures are correct. If in doubt contact your local tax office.

First Week Number for Table

The first week number when the table becomes effective. The be table becomes current when its tax year matches the entry in the Current Tax Year box on the Payroll Options form, and the entry in this box matches the current pay period.

First Month Number for Table

The first month number when the table becomes effective. The table becomes current when its tax year matches the entry in the Current Tax Year box on the Payroll Options form, and the entry in this box matches the current pay period.

Use national minimum and living wage age bands planned for 01/04/2021

Select this checkbox if national minimum and living wage age bands planned from 1st April 2021 are to be applied.

Student Loans

The employees qualifying pay must be above the annual threshold for Student loans and the repayment amount is then calculated by deducting this threshold from the qualifying pay before multiplying by the percentage specified in the % Rate box.

Tip: For full details of student loan repayments, visit www.gov.uk/new-employee/student-loans.

As the student loan threshold is expected to change annually two levels are recorded  - one for Table 1 and another for Table 2.

Postgraduate Loans

The employees qualifying pay must be above the annual threshold for Postgraduate Loans and the repayment amount is then calculated by deducting this threshold from the qualifying pay before multiplying by the percentage specified in the % Rate box.

Emergency Tax Code

The default emergency tax code for the tax year. This is used when new employees are added to payroll for which a tax code is not otherwise provided.

Base Rate

The number that identifies which of the PAYE rates you have entered is the base rate. The base rate entered determines the calculation of tax contributions for employees who have a tax code of BR.

Weekly/Monthly and Annual Rates

The weekly NI bandwidths as determined by HMRC. The monthly and annual bandwidths are calculated automatically based on the weekly bandwidths.

Monthly and annual bandwidths may need to be amended.

Employer

The employer NI % rates according to the NI letter and bandwidth.

LEL

The number that identifies the band (row number) representing the Lower Earnings Limit. If an employee's pay is below the lower level, no NI contributions are payable by the employee or employer. This lower limit is also used for pension contribution calculations where no limit has been specified on the Payroll Options form or for individual employee records.

Prev. LEL Val

The value of the Lower Earnings Limit for the tax year before this tax year. This information is required by the application for certain calculations. When you begin using rates from table 2, the application sets this value automatically from the LEL in table 1.

ST

The number that identifies the band (row number) representing the Secondary Threshold which is the employers threshold for NI calculations.

PT

The number that identifies the band (row number) representing the Primary Threshold which is the employees threshold for NI calculations.

UEL/UST/AUST

The number that identifies the band (row number) representing the Upper Earnings Limit, Upper Secondary Threshold and Apprentice Upper Secondary Threshold.

This upper limit can also be used to cap pension contribution calculations where no limit has been specified in the Employee UEL box on the employee record, or in the UEL for Pension box on the Payroll - Utilities - Set Options form.

If Advanced Pension Processing is enabled, the pension scheme profiles can be set to cap pension calculations at the UEL.

Apprenticeship Levy Annual Allowance & %

If you need to change the allowance amount being claimed for a company, tick the Override the Allowance box and then enter the new value in the adjacent box.

Employment Allowance

If you need to change the allowance amount being claimed for a company, tick the Override the Allowance box and then enter the new value in the adjacent box.

Tip: You should record the employment allowance you claim on the Payroll - P32 Processing - Employment Allowance form so you can monitor the amount claimed. The allowance claimed is displayed in the Emp. Allow. column on the P32 Processing form and is deducted from the outstanding amount to be paid to HMRC.

Class 1A NICs % Rate

The employer Class 1A NICs % rate, which is used for termination payments and sporting testimonials above the relevant threshold. The thresholds are recorded on the NI EE's page.

Employee

The employee NI % rates according to the NI letter and bandwidth.

Termination payment threshold

The termination payments threshold. From 6 April 2020, termination payments over a £30,000 threshold, which have not already incurred a Class 1 NICs liability, are subject to Class 1A Employers NICs.

Sporting testimonial threshold

The sporting testimonials threshold. From 6 April 2020, sporting testimonials over a £100,000 threshold, which have not already incurred a Class 1 NICs liability, are also be subject to Class 1A Employers NICs.

Rate

The SSP rate that corresponds to the SSP range. SSP rates and ranges are used by the application to calculate the employee's SSP daily rate based on the employee's earnings on which national insurance is deductible.

Range

The SSP range that corresponds to the SSP rate. SSP rates and ranges are used by the application to calculate the employee's SSP daily rate based on the employee's earnings on which national insurance is deductible.

Waiting Days

The number of qualifying days in a period of incapacity for work (PIW) during which SSP is not payable. These are called waiting days. If PIWs are linked there are no waiting days in the second (or later) spells of sickness.

Days to make PIW

The number of qualifying days that constitutes the start of a PIW.

PIW Link Period Days

The number of days that determines whether PIWs are linked, which is normally if the gap between them is 56 days or less.

Maximum SSP Weeks

The maximum number of weeks SSP entitlement. The application will warn you if you approach this limit when you reach the warning week number specified below.

Warning Week No.

See above.

Max PIW Link Years

The maximum number of years over which PIWs can be linked.

Relevant Period

The relevant period for SSP. Currently, for weekly-paid employees, the relevant period is the 8 weeks ending on the last payday before your employee went sick.

Recovery Percentage

The percentage of SSP which you may be entitled to recover under the Percentage Threshold Scheme. Unless you qualify under the Percentage Threshold Scheme you are not entitled to recover any of the SSP paid to your employees.

Old SSP Rate 1

The SSP rate from the previous Table 1 figures. This allows for calculation of SSP where the date of absence is prior to the start date of the rate now stored in Table 1.

Earnings Related % Rate

The earnings related percentage rate of Statutory Maternity Pay (SMP).

Standard Rate

The standard rate of SMP.

Max Wks for Earn Rel % Rate

The number of weeks over which the earnings related percentage rate of SMP applies.

Max Wks for Standard Amount

The number of weeks over which the standard amount of SMP applies.

Reclaim Percentage Regular

The percentage of recovery of SMP you can reclaim if you are not entitled to the Small Employer's Relief (SER).

NIC Compensation % Regular

The percentage of National Insurance Contribution compensation you can claim if you are not entitled to the Small Employer's Relief (SER).

Reclaim Percentage SER

The percentage of recovery of SMP you can reclaim if you are entitled to the Small Employer's Relief (SER).

NIC Compensation % SER

The percentage of National Insurance Contribution compensation you can claim if you are entitled to the Small Employer's Relief (SER).

Use Minimum Value

Not used.

Any Day MPP Start

Rules introduced in April 2003 amended the definition of a week for cases where the MPP is triggered by an early birth (either before or after the start of the 11th week before the EWC) or by a pregnancy related illness in the last four weeks before the EWC. In both these circumstances the MPP will start with the day following the birth or the day after the first complete day of absence from work because of a pregnancy related illness in the four weeks before the EWC. For these cases a week will be defined as any period of seven days.

Weeks for Maternity Pay Period

The number of weeks during which SMP can be paid.

Weeks for Earliest MPP Start

The number of weeks that determines the earliest week that the MPP can start.

Weeks for Medical Evidence

The number of weeks medical evidence can be accepted. You cannot accept medical evidence issued more than 20 weeks before the week the baby is expected.

Qualifying Weeks

The number of qualifying weeks that apply to SMP. The entitlement to SMP is based on calculating the employee's gross average weekly earnings over this number of qualifying weeks.

Weeks for Continuous Employment

The number of weeks of continuous employment that are required to determine an employee's entitlement to receive SMP.

Pregnancy End Weeks

The number of weeks prior to the EWC at which SSP is payable if the baby is stillborn.

Pregnancy Related Illness Weeks

The number of weeks before the expected week of confinement (EWC) which is relevant if the employee is absent from work with a pregnancy-related illness.

Employee Notification Days

The number of days notification that must be given by the employee before she intends to start her maternity leave.

Relevant Period

The relevant period for SMP. This is currently a period of at least 8 weeks ending with the last normal pay day before the end of the employee's qualifying week and beginning with the day after the pay day that fell at least 8 weeks before that one.

Earnings Related % Rate

The earnings related percentage rate of Statutory Paternity Pay (SPP).

Standard Rate

The standard rate of SPP.

Weeks for Paternity Pay Period

The number of weeks during which SPP can be paid. SPP cannot be paid for any week in the Paternity Pay Period in which your employee does some work for you.

Time Limit Days

The time limit, in days, past which the employee cannot receive paternity pay.

Employee Notification Days

The number of days notification that must be given by the employee before he intends to start his paternity leave.

Earnings Related % Rate

The earnings related percentage rate of Statutory Adoption Pay (SAP).

Standard Rate

The standard rate of SAP.

Weeks for Adoption Pay Period

The number of weeks during which SAP can be paid.

Weeks for Earliest APP Start

The number of weeks that determines the earliest date that the adoption pay period can start.

Earnings Related % Rate

The earnings related percentage rate of Shared Parental Pay (ShPP).

Standard Rate

The standard rate of ShPP.

Earnings Related % Rate

The earnings related percentage rate of Statutory Parental Bereavement Pay (SPBP).

Standard Rate

The standard rate of SPBP.