Payment Profile

Payment Code

A reference automatically assigned to identify the profile.

Type

An option that determines the type of payment. You can select one of the following from a list:

• Blank - the default setting for any payment types other than those identified below

• S for Statutory Sick Pay

• M for Statutory Maternity Pay

• I for Construction Industry Holiday Payments

• D for Ordinary Statutory Paternity Pay (Birth)

• E for Ordinary Statutory Paternity Pay (Adoption)

• F for Statutory Adoption Pay

• T for Statutory Maternity Pay top-up

• J for Additional Statutory Paternity Pay (Birth)

• K for Additional Statutory Paternity Pay (Adoption)

• B for Benefit in KindYou can payroll most Benefits in Kind (BiKs) in real time instead of completing a P11D after the end of the tax year. Payrolling is where you include a notional value for employee BiKs as taxable pay into the regular payroll cycle. This is optional and you must register with HMRC by the start of the tax year if you want to do this. If you use the service you won’t need to use form P11D but still need to work out the Class 1A National Insurance contributions on benefits and complete form P11D(b).
  
  If you prefer you can instead report BiKs on the P11D after the end of the tax year as normal.
  
  For full details of payrolling of benefits, visit www.gov.uk/guidance/paying-your-employees-expenses-and-benefits-through-your-payroll.
  
  Benefit in kind payments are included in the Full Payment Submission.
  
  

• U for Statutory Parental Bereavement Pay (SPBP)

Print If Zero

An option that determines whether the payment defined by this profile is printed on employee payslips regardless of the value.

Multiply for Holidays

An option that determines whether permanent payment values associated with the profile are multiplied for holidays by the number of weeks the employee is taking. It is used when holiday is recorded for weekly paid employees on the Payroll - Processing - Holiday form.

If the option is not selected, the payment will be made for the last working period paid before an employee’s holiday, but not for the holiday periods.

Print Balance

An option that determines whether the balance of payments associated with the profile is printed on employee payslips.

Balance Description

A balance description of up to 10 characters. This only applies if you have selected the Print Balance option. The description prints alongside the payment balance on the payslip.

Auto Align

An option that determines the default position of the cursor for the entry of period payments you make using the Payments command on the Processing form. The selection determines in which column of the form the cursor is initially located. You can select one of the following from a list:

• N (for 'none' if you do not want to specify a default)

• 1 (Permanent)

• 2 (Temporary)

• 3 (Units)

• 4 (Rate).

Balance Number

A number that identifies the deduction profile balance. An entry in this box indicates that you want the corresponding accumulated deduction balance to be reduced by the amount of payments associated with this profile. For example, you might set up a deduction balance that accumulates holiday pay, which is subsequently reduced whenever holiday pay is issued.

Mask NL Code

An option that determines whether the nominal ledger account code for payments associated with the profile are 'masked' for analysis purposes. See the topic Nominal Codes for further details about masking.

Nominal Code

A reference that identifies the nominal account code for the analysis of payments associated with the profile. If you have either the Payroll to Nominal or Payroll to External Nominal option selected on the Options tab of the Company Profiles form in the System application, you can select an account from a list. In this case, the accounts will be defined either using the Accounts command on the Maintenance submenu of the Nominal application or the Nominal Accounts command on the Maintenance submenu of the Payroll application.

Retain Units

An option that determines whether units recorded for payments associated with the profile are retained after you use the Update command.

Taxable

An option that determines whether payments associated with the profile are subject to Income Tax.

NI'able

An option that determines whether payments associated with the profile are included in the calculation of National Insurance contributions.

Class 1A NI'able

An option that determines whether payments associated with the profile are included in the calculation of Employers Class 1A National Insurance contributions.

Details ...

Example ...

Important: Only select this option for payments that are above the threshold for termination payments or sporting testimonial awards.

Pensionable

An option that determines whether payments associated with the profile are included in the calculation of pension contributions.

Hol'able

Payroll caters for both average holiday pay, and the accumulation of a holiday pay fund, by using this option.

Holiday Pay Averaging

Where holiday pay averaging is being used, the payment profiles included in the calculation of an employee’s average holiday pay are those with this option selected. To include other payments in the calculation of the average holiday pay, for example: overtime, ensure the payment profile has this option selected.

Holiday pay averaging is switched on using the Payroll - Utilities - Set Options form.

Holiday Pay Fund

This option is also used where you have chosen to accumulate an employee’s holiday pay fund as a percentage of pay. To include other payments in the calculation of the holiday pay fund please ensure the payment profile has this option selected.

Holiday pay funds are accumulated by use of an 'H' type deduction.

Attachable

An option that determines whether payments associated with the profile are eligible for deductions against attachment orders.

Auto Enrolment

An option that determines whether payments associated with the profile must be taken into account when calculating qualifying earnings for auto-enrolment  assessment.  

Triv. Commut.

An option for ‘trivial commutation pension payments’, which is a term used by HMRC for small pension funds which are paid in full. These payments need to be identified separately in a pay period's Full Payment Submission (FPS). Select one of these options as appropriate for the type of lump sum paid in place of a small pension (other than other lump sum benefits and serious ill health):

• Trivial commutation lump sum (TCLS)

• Other lump sum (from personal pension schemes)

• Other lump sum (from occupational/public service pension schemes).

The default setting for this option is 'No'. It does not need to be changed unless required for the reasons explained.

Salary Sacrifice

An option that controls whether the payments associated with the profile should be included in salary sacrifice calculations.

Type

Select either 'Pension', or 'Other' for other types of contribution - for example child care vouchers or the Cycle to Work schemes.

Pension Scheme

A code that identifies the pension scheme that the salary sacrifice will be paid into. You can create one salary sacrifice payment profile for any pension scheme. This applies only if Advanced Pension Processing is used.

Flexible Pension

This option works in conjunction with the following two pension related options for an individual on the Payroll - Processing - Details & Bank form:

• the Pension Death Benefit option

• the Serious Ill Health Lump Sum option.

If either of those options are selected for an individual and a flexible pensions payment profile is used, the death benefit or serious ill health lump sum payment details will be included in the FPS for the pay period.