Set Options

Use Set Options command to specify options and controls that affect the operation of the Payroll application's processes and functions. Your setup strategy will determine the order in which you complete the option settings. For some option settings, records must first be created in other parts of the system. For example, one option identifies a default bank account. Before you can identify this account on the Payroll Options form, you must create the bank record concerned using the Bank Details command on the Maintenance submenu.

Options Page 1 (HMRC & Banking Settings)

Box	Description
Sort Code	The sort code of the company's bank account. You can select from a list. This is used for employees paid by Autopay or BACS. Bank details are defined using the Payroll - Maintenance - Bank Details form.
Bank Account No.	The company's bank account number. This is used for employees paid by Autopay or BACS.
Bank Account Name	The name of the company's bank account.
BACS System	An option that determines the Banker's Automated Clearing System (BACS) in use and therefore the format of the files created when you use the Payroll - Payment Reports - Produce and List BACS command. You can select one of the following from this list: AIB Bank of Cyprus Bank Ireland BankWare BBMII Lite BOS BOS Commercial Bankline Bankline Ad Hoc Clydesdale Co-op Lloyds TSB (works with 'LloydsLink' or 'Lloyds Commercial Banking Online (CBO)') HSBC (HSBCnet) Metro Bank Northern Bank (Northern Ireland) NW Autopay NW Payaway (If you use this product you must change this option to 'STDBACS RTI' after switching on Real Time Information. This is because the NatWest Payaway product works with the Pegasus STDBACS RTI format that includes a reference, which, along with other information, is used to create a reconciliation reference when the payment information is sent to HMRC. HMRC use the reconciliation reference to check the payment against the information in the Full Payment Submission). NW Payment Manager Royline Blk Royline Win Blk Royline Std Royline Win Std Santander STDBACS STDBACS RTI Standard 18 Yorkshire. Important: BACS files created in Payroll are mostly in bulk format. This means that your bank statement will have a single debit entry even when many employees are paid. Where the list item is suffixed with "Std", they are in Standard, or non-bulk format. However these formats are also available in bulk formats - suffixed with "Blk". Where the list item does not mention either "Std" or "Blk", the bulk format is used. BACS files created in non-bulk format have one debit entry for every payment into payee's bank accounts.
PAYE Reference	Your company PAYE reference which identifies your company to HMRC. If you are uncertain about your PAYE reference contact your local tax office. The PAYE reference is used by the system when printing end of year forms such as P14s and P35s. Important: The PAYE Reference is in 2 parts separated by a "/". The first part of the reference before the "/" is your HMRC Office number. The second part after the "/" should only include your unique reference number supplied by HMRC; it must not include the HMRC Office number.
Tax District	The company's tax district. As with the PAYE reference, this is used on end-of-year forms and identifies the tax district applicable to your company.
Accounts Office Ref.	The accounts office reference, which must be entered for Real Time Information submissions. If it is not entered here you will receive an error from the Government Gateway similar to 'Ref 1186 AORef is mandatory in FPS' when you make a Real Time Information submission. This is also needed for P32 consolidation purposes in Opera.
ECON	The employer's Contracting Out Number as notified by the Contracted Out Employment Group (COEG) if you are operating an occupational pension scheme.
Child Maint. ER Ref. No.	This box is for the employer's child maintenance reference number supplied by the Child Maintenance Service. Only one child maintenance reference number is provided which must be used for all payroll groups so this box is enabled only for the main group. All groups will use the reference entered. This code is included on the Deductions from Earnings Orders report that displays employees' deductions from earnings orders. The report can be faxed or posted to the Child Maintenance Service or uploaded to its website if DEOs are deducted under the 2012 scheme. See the Deductions from Earnings Orders (DEOs) for Child Maintenance Schemes help topic for details about the 2012 Deductions from Earnings Orders.
Current Tax Year	The current tax year. For example enter the 2013-2014 tax year as '1314'. The system automatically inserts the current tax year when you enter the set options procedure. This only occurs the first time you enter set options and is based on the current system date. The option controls which NI, PAYE and Statutory Payments tables to use.
P32 Processing options
P32 Co. Consolidation ID	The ID for the consolidation company. This defaults to the same ID as the current company. Accounts Office references must be identical for consolidating companies.
P32 Payment Frequency	An option that determines the P32 payment frequency. You can select monthly or quarterly.
P32 By Income Tax Month	An option that controls how some weeks in weekly, two-weekly and four-weekly payrolls are included on the P32 Processing form. The weeks affected span different tax months - weeks 5, 9, 18, 22, 27, 31, 35, 40, 44 and 48. This option does not affect monthly payrolls. If this option is ticked, the form includes the week numbers in the month where the usual pay date for the week falls. In the week numbers mentioned, this means that the week may not be included in the month as it is displayed on the official P32 form. This is best explained with an example. If the usual pay date for the first five weeks of the year are 6 April, 13 April, 20 April, 27 April and 4 May, according to the P32 return Weeks 1, 2, 3 and 4 should be included in Month 1 and Week 5 should be included in Month 2. Under an HMRC ruling however, in this example Week 5 should be included in Month 1 rather than in Month 2 because the usual pay day of 4 May falls in Month 1. This means that: - Month 1 should include Weeks 1, 2, 3, 4 and 5 - Month 2 should include Weeks 6, 7, 8 and 9. If the usual pay date for the first five weeks of the year are 6 April, 13 April, 20 April, 27 April and 4 May, according to the P32 return Weeks 1, 2, 3 and 4 should be included in Month 1 and Week 5 should be included in Month 2. Under an HMRC ruling however, in this example Week 5 should be included in Month 1 rather than in Month 2 because the usual pay day of 4 May falls in Month 1. This means that: Month 1 should include Weeks 1, 2, 3, 4 and 5 Month 2 should include Weeks 6, 7, 8 and 9. To comply with HMRC guidance, tick this option if you run weekly, two-weekly or four-weekly payrolls.
RTI option and email address
Use Real Time Information	Must be selected. All employers must operate their PAYE schemes in real time.
Sender e-mail for payslips and P60s	Opera 3 includes a feature to send password-protected payslips and P60s in PDF format to your employees. The sender's email address and name are what the employee will see when they receive their welcome emails, password emails when requested, and payslips and P60s. Tip: To set up Payroll for email, follow the steps in the To Set up Payroll for Emailing Payslips and P60s Help topic. This feature is available in Opera 3.

Box

Description

Sort Code

The sort code of the company's bank account. You can select from a list. This is used for employees paid by Autopay or BACS. Bank details are defined using the Payroll - Maintenance - Bank Details form.

Bank Account No.

The company's bank account number. This is used for employees paid by Autopay or BACS.

Bank Account Name

The name of the company's bank account.

BACS System

An option that determines the Banker's Automated Clearing System (BACS) in use and therefore the format of the files created when you use the Payroll - Payment Reports - Produce and List BACS command.

You can select one of the following from this list:

AIB
Bank of Cyprus
Bank Ireland
BankWare
BBMII Lite
BOS
BOS Commercial
Bankline
Bankline Ad Hoc
Clydesdale
Co-op
Lloyds TSB (works with 'LloydsLink' or 'Lloyds Commercial Banking Online (CBO)')
HSBC (HSBCnet)
Metro Bank
Northern Bank (Northern Ireland)
NW Autopay
NW Payaway (If you use this product you must change this option to 'STDBACS RTI' after switching on Real Time Information. This is because the NatWest Payaway product works with the Pegasus STDBACS RTI format that includes a reference, which, along with other information, is used to create a reconciliation reference when the payment information is sent to HMRC. HMRC use the reconciliation reference to check the payment against the information in the Full Payment Submission).
NW Payment Manager
Royline Blk
Royline Win Blk
Royline Std
Royline Win Std
Santander
STDBACS
STDBACS RTI
Standard 18
Yorkshire.

Important: BACS files created in Payroll are mostly in bulk format. This means that your bank statement will have a single debit entry even when many employees are paid. Where the list item is suffixed with "Std", they are in Standard, or non-bulk format. However these formats are also available in bulk formats - suffixed with "Blk". Where the list item does not mention either "Std" or "Blk", the bulk format is used. BACS files created in non-bulk format have one debit entry for every payment into payee's bank accounts.

PAYE Reference

Your company PAYE reference which identifies your company to HMRC. If you are uncertain about your PAYE reference contact your local tax office. The PAYE reference is used by the system when printing end of year forms such as P14s and P35s.

Important: The PAYE Reference is in 2 parts separated by a "/". The first part of the reference before the "/" is your HMRC Office number. The second part after the "/" should only include your unique reference number supplied by HMRC; it must not include the HMRC Office number.

Tax District

The company's tax district. As with the PAYE reference, this is used on end-of-year forms and identifies the tax district applicable to your company.

Accounts Office Ref.

The accounts office reference, which must be entered for Real Time Information submissions. If it is not entered here you will receive an error from the Government Gateway similar to 'Ref 1186 AORef is mandatory in FPS' when you make a Real Time Information submission.

This is also needed for P32 consolidation purposes in Opera.

ECON

The employer's Contracting Out Number as notified by the Contracted Out Employment Group (COEG) if you are operating an occupational pension scheme.

Child Maint. ER Ref. No.

This box is for the employer's child maintenance reference number supplied by the Child Maintenance Service. Only one child maintenance reference number is provided which must be used for all payroll groups so this box is enabled only for the main group. All groups will use the reference entered.

This code is included on the Deductions from Earnings Orders report that displays employees' deductions from earnings orders. The report can be faxed or posted to the Child Maintenance Service or uploaded to its website if DEOs are deducted under the 2012 scheme.

See the Deductions from Earnings Orders (DEOs) for Child Maintenance Schemes help topic for details about the 2012 Deductions from Earnings Orders.

Current Tax Year

The current tax year. For example enter the 2013-2014 tax year as '1314'. The system automatically inserts the current tax year when you enter the set options procedure. This only occurs the first time you enter set options and is based on the current system date.

The option controls which NI, PAYE and Statutory Payments tables to use.

P32 Processing options

P32 Co. Consolidation ID

The ID for the consolidation company. This defaults to the same ID as the current company.

Accounts Office references must be identical for consolidating companies.

P32 Payment Frequency

An option that determines the P32 payment frequency. You can select monthly or quarterly.

P32 By Income Tax Month

An option that controls how some weeks in weekly, two-weekly and four-weekly payrolls are included on the P32 Processing form. The weeks affected span different tax months - weeks 5, 9, 18, 22, 27, 31, 35, 40, 44 and 48. This option does not affect monthly payrolls.

If this option is ticked, the form includes the week numbers in the month where the usual pay date for the week falls. In the week numbers mentioned, this means that the week may not be included in the month as it is displayed on the official P32 form. This is best explained with an example.

To comply with HMRC guidance, tick this option if you run weekly, two-weekly or four-weekly payrolls.

RTI option and email address

Use Real Time Information

Must be selected. All employers must operate their PAYE schemes in real time.

Sender e-mail for payslips and P60s

Opera 3 includes a feature to send password-protected payslips and P60s in PDF format to your employees.

The sender's email address and name are what the employee will see when they receive their welcome emails, password emails when requested, and payslips and P60s.

Tip: To set up Payroll for email, follow the steps in the To Set up Payroll for Emailing Payslips and P60s Help topic.

This feature is available in Opera 3.

Options Page 2 (General & Statutory Payments Settings)

Box	Description
Hours and Minutes	An option that determines whether minutes are used for units within payments and deductions. For example, if selected 1.25 means one hour and twenty-five minutes. If this option is cleared, the system uses decimals. In this case 1.25 means one hour and a quarter (one hour fifteen minutes). If the Payroll application is integrated with the Costing application, the Hours and Minutes box on the Set Options form in the Costing application will be set in the same way. This only applies if the Costing application is installed and activated.
Use Departments	An option that determines whether departments are in use within the Payroll application. If you have the Nominal application integrated with the Payroll application and you are using cost centres, you can choose whether to analyse your payroll by nominal ledger cost centre alone, or by department within cost centre. If you want to analyse department within cost centre, select this Use Departments option to analyse values to many departments within each cost centre. The number of departments available is determined by how many you create using the Department Details command on the Maintenance menu in the Payroll application.
Allow Employee Holiday Days	An option that determines whether you can override the default holiday days entitlement on the employee record. The default is assigned from the employee profile associated with the employee.
Allow N/ L Masking	An option that determines whether nominal codes identified in the Payroll application are subject to 'masking'. Masking allows you to select the nominal account to which the analysis values are posted by manipulating the analysis codes.
Post Blank Control Account Cost Centres	An option that determines whether you want to post payroll values to nominal control accounts that do not have cost centres. With this option cleared, the application requires both a cost centre with the nominal code. If no cost centre is defined in the Nominal Codes function, the system takes the cost centre from the department. The cost centre must be defined in the Nominal Codes or on the department record before you can begin processing in the Payroll.
Use Groups	An option that determines whether you want to operate a multi-frequency payroll (for example, with weekly and monthly-paid employees). The application creates a default group, but you must create a group record for each frequency you wish to use using the Group Details command on the Maintenance submenu. If groups are in use, you can define certain options on a group basis. The options for the default group apply in all cases where group options have not been defined.
Current Week in Holiday Average	An option that determines whether the current week's pay is included when calculating the holiday pay average.
Trade Dispute	An option that controls whether all employees in the group are in a trade dispute with the employer. Tax refunds are withheld from employees in a trade dispute. You can also set this option at employee profile level or per employee.
Allow Off-Payroll Workers	An option that controls whether off-payroll workers can be maintained in Payroll. If this option is selected, payroll records can be defined for off-payroll workers using the Payroll - Processing - Employee Details & Bank form. A new off-payroll worker is assigned 'Start Declaration C' status for the P45, and their tax code is set to 'BR Cumulative'. For off-payroll workers, fees charged to clients (known as 'deemed direct payments') must be subject to tax and NI deductions, and employer NI must be paid. Off-payroll workers are processed in Payroll in the 2020-21 tax year as any other employees, with these differences: Off-payroll workers are responsible for managing any student loans, postgraduate loan deductions and pensions, so these areas of Payroll cannot be used for them. In the FPS file sent to HMRC for each pay period, these workers are indicated in the submission as off-payroll workers. For the employer, these differences apply: Employers cannot offset the Employment Allowance against Employer NI paid for off-payroll workers. The Employment Allowance form in P32 Processing excludes Employer NI paid for off-payroll workers. Employers are not responsible for student loans or postgraduate loan deductions for off-payroll workers. Employers are not required to pay statutory payments to off-payroll workers. Employers are not required to enrol off-payroll workers into pensions.
Use Advanced Pension Processing	If Advanced Pension Processing is not used you must manually add pension deductions to each employee on the Payroll - Processing - Pay & Deductions form. This need not be done if Advanced Pension Processing is used. Advanced Pension Processing makes it possible to easily set up pension schemes, link these schemes to your employees, and manage the employer and employee contributions that are paid into the schemes. Advanced Pension Processing also allows you to send enrolment and contribution files to NEST and NOW: Pensions. To set up Opera for auto enrolment we recommend that you use Advanced Pension Processing. Please see the Starting with Advanced Pension Processing Help topic for steps to change to using this feature.
Use Auto Enrolment Processing	An option that enables the facilities for pension auto enrolment in the Payroll. If this is selected, you can use the Payroll - Global Changes - Auto Enrolment Updates command to auto-enrol eligible employees into approved pension schemes. You will also be able to maintain their pension details and deduct both employee and employer pension contributions. Important: Do not select this option before the pay period in which your staging date falls.
Align Pay Reference Period with Tax Period	Important: If you set up Opera for Auto Enrolment Processing before this option was introduced then please contact your Pegasus partner before using it. In this situation there may be some manual amendments needed after selecting this option. If this option is selected the PRP is aligned with the tax period (from the 6th of a month to the 5th of the following month). 4/4/5 Payrolls You should select this option if you run a 4/4/5 monthly payroll (where employees are paid monthly but are sometimes paid for four weeks’ work and at other times for five weeks’ work). Opera can then assess employees' earnings for auto enrolment using the monthly auto enrolment thresholds (for 4/4/5 payrolls Opera cannot assess monthly paid earnings using multiples of weekly auto enrolment thresholds). This option is enabled if the Use Auto Enrolment Processing option is used on the Set Options form.
COMP Scheme in Use	This option is ignored. This option allowed COMP schemes to be used. COMP schemes are no longer allowed.
Employer Pays COMP	This option is ignored. This option controlled whether the employer paid both the employee's and employer's COMP contributions. COMP schemes are no longer allowed.
Entitled to Small Employer's Relief	An option that determines whether your company is entitled to the Small Employer's Relief for statutory payments.
Use Full SMP Processing	An option that determines whether you want the application to calculate Statutory Maternity Pay entitlement for employees expecting a baby. If the option is cleared, you must enter SMP payments manually when they apply in any given period. You can also record the maternity absence in the employee's diary within the Personnel application. If the option is selected, a number of areas of the payroll are changed to record settings and parameters that enable the application to automatically calculate an employee's SMP entitlement for the pay period. The Payroll - Processing - SMP Details form is also available to record the SMP details for an employee.
Pay SMP/SPP/ SAP/ASPP to End of Period	An option that determines whether Statutory Maternity Pay, Statutory Paternity Pay (for births or adoption), Additional Statutory Paternity Pay (for births or adoption) or Statutory Adoption Pay is paid for maternity/paternity pay weeks either up to and including the usual payment date or up to the end of the pay period. This option covers circumstances that could otherwise leave an employee paid less SMP, Statutory Paternity Pay (for births or adoption), or SAP than expected. For example, if employees are paid mid-month but the pay is intended to cover wages to the end of the month, selecting this option will ensure they receive all due statutory payments. Shared Parental Pay (ShPP) has replaced Additional Statutory Paternity Pay. ShPP allows eligible partners to share parental leave. The rules for adoptions are similar to new births. For details about ShPP, please visit www.gov.uk/shared-parental-leave-and-pay/overview. For instructions on setting up ShPP in Opera please see the How to Set Up Shared Parental Pay Help topic. Important: If the option is cleared, the statutory payments are only be paid up to the payment date.
Use Full SPP (Birth) Processing	An option that determines whether you want the application to calculate Statutory Paternity Pay (SPP) entitlement for employees. If the option is cleared, you enter SPP payments manually when they apply in any given period. You can also record the paternity absence in the employee's diary within the Personnel application. If the option is selected, a number of areas of the payroll are changed to record settings and parameters so that SPP is automatically calculated for those entitled employees for the pay period. The Payroll - Processing - SPP (Birth) Details form is available to record the SPP details for an employee.
Use Full SSP Processing	An option that determines whether you want the application to calculate Statutory Sick Pay (SSP) entitlement for employees. If the option is cleared, you must enter SSP payments manually when they apply in any given period. You can also record the sickness days in the employee's diary in the Personnel application. If the option is selected, a number of areas of the payroll application are changed to record settings and parameters that enable the application to automatically calculate an employee's SSP entitlement for the pay period. The Payroll - Processing - SSP Absence form is also available to record the SSP sickness days for an employee.
Pay SSP to End of Period	An option that determines whether Statutory Sick Pay (SSP) is paid to the end of the current period or only up to and including the usual payment date. Making SSP payments up to the usual payment date can cause problems if employees are paid in arrears. In these circumstances, the option can be selected so they receive any SSP entitlement up to the end of the pay period instead. Important: If the option is cleared, SSP will only be paid up to the payment date.
SSP Qualifying Days Pattern	Only available if Use Full SSP Processing is selected. An option that determines the default qualifying pattern for Statutory Sick Pay calculations for the currently selected group. You click to select each day that qualifies for SSP and the application displays the number of days in the Days box alongside. The default selection is Monday to Friday (5 days).
Split-Week Payments of SMP/SAP	Only available if Use Full SMP Processing or Use Full SAP Processing is selected. This option defines whether split Statutory Maternity Pay (SMP) and Statutory Adoption Pay (SAP) payments are permitted for the payroll group to align the payments with wages and salary payments. Split SMP payments were introduced by the Work & Families Act. The employer, not the employee, decides whether to split SMP and SAP payments.
Use Full SPP (Adopt) Processing	An option that determines whether you want the application to calculate Statutory Paternity Pay (SPP) for adoption entitlement for employees adopting a child. If the option is cleared, you can enter SPP for adoption payments manually when they apply in any given period. You can also record the absence in the employee's diary in the Personnel application. If the option is selected, a number of areas of the payroll are changed to record settings and parameters that enable the application to automatically calculate an employee's SPP (Adopt) entitlement for the pay period. The Payroll - Processing - SPP-Adopt Details form is available to record the SPP for adoption details for an employee.
Use Full SAP Processing	An option that determines whether you want the application to calculate Statutory Adoption Pay (SAP) entitlement for employees adopting a child. If the option is cleared, you can enter SAP payments manually when they apply in any given period. You can also record the absence in the employee's diary in the Personnel application. If the option is selected, a number of areas of the payroll are changed to record settings and parameters that enable the application to automatically calculate an employee's SAP entitlement for the pay period. The Payroll - Processing - SAP Details form is available to record the SAP details for an employee.
Use Full ASPP (Birth) & (Adopt) Processing	Shared Parental Pay (ShPP) has replaced Additional Statutory Paternity Pay. ShPP allows eligible partners to share parental leave. The rules for adoptions are similar to new births. For details about ShPP, please visit www.gov.uk/shared-parental-leave-and-pay/overview. For instructions on setting up ShPP in Opera please see the How to Set Up Shared Parental Pay Help topic.

Box

Description

Hours and Minutes

An option that determines whether minutes are used for units within payments and deductions. For example, if selected 1.25 means one hour and twenty-five minutes. If this option is cleared, the system uses decimals. In this case 1.25 means one hour and a quarter (one hour fifteen minutes). If the Payroll application is integrated with the Costing application, the Hours and Minutes box on the Set Options form in the Costing application will be set in the same way. This only applies if the Costing application is installed and activated.

Use Departments

An option that determines whether departments are in use within the Payroll application. If you have the Nominal application integrated with the Payroll application and you are using cost centres, you can choose whether to analyse your payroll by nominal ledger cost centre alone, or by department within cost centre. If you want to analyse department within cost centre, select this Use Departments option to analyse values to many departments within each cost centre. The number of departments available is determined by how many you create using the Department Details command on the Maintenance menu in the Payroll application.

Allow Employee Holiday Days

An option that determines whether you can override the default holiday days entitlement on the employee record. The default is assigned from the employee profile associated with the employee.

Allow N/ L Masking

An option that determines whether nominal codes identified in the Payroll application are subject to 'masking'. Masking allows you to select the nominal account to which the analysis values are posted by manipulating the analysis codes.

Post Blank Control Account Cost Centres

An option that determines whether you want to post payroll values to nominal control accounts that do not have cost centres. With this option cleared, the application requires both a cost centre with the nominal code. If no cost centre is defined in the Nominal Codes function, the system takes the cost centre from the department. The cost centre must be defined in the Nominal Codes or on the department record before you can begin processing in the Payroll.

Use Groups

An option that determines whether you want to operate a multi-frequency payroll (for example, with weekly and monthly-paid employees). The application creates a default group, but you must create a group record for each frequency you wish to use using the Group Details command on the Maintenance submenu. If groups are in use, you can define certain options on a group basis. The options for the default group apply in all cases where group options have not been defined.

Current Week in Holiday Average

An option that determines whether the current week's pay is included when calculating the holiday pay average.

Trade Dispute

An option that controls whether all employees in the group are in a trade dispute with the employer. Tax refunds are withheld from employees in a trade dispute. You can also set this option at employee profile level or per employee.

Allow Off-Payroll Workers

An option that controls whether off-payroll workers can be maintained in Payroll.

If this option is selected, payroll records can be defined for off-payroll workers using the Payroll - Processing - Employee Details & Bank form.

A new off-payroll worker is assigned 'Start Declaration C' status for the P45, and their tax code is set to 'BR Cumulative'.

For off-payroll workers, fees charged to clients (known as 'deemed direct payments') must be subject to tax and NI deductions, and employer NI must be paid.

Off-payroll workers are processed in Payroll in the 2020-21 tax year as any other employees, with these differences:

Off-payroll workers are responsible for managing any student loans, postgraduate loan deductions and pensions, so these areas of Payroll cannot be used for them.
In the FPS file sent to HMRC for each pay period, these workers are indicated in the submission as off-payroll workers.

For the employer, these differences apply:

Employers cannot offset the Employment Allowance against Employer NI paid for off-payroll workers. The Employment Allowance form in P32 Processing excludes Employer NI paid for off-payroll workers.
Employers are not responsible for student loans or postgraduate loan deductions for off-payroll workers.
Employers are not required to pay statutory payments to off-payroll workers.
Employers are not required to enrol off-payroll workers into pensions.

Use Advanced Pension Processing

If Advanced Pension Processing is not used you must manually add pension deductions to each employee on the Payroll - Processing - Pay & Deductions form. This need not be done if Advanced Pension Processing is used.

Advanced Pension Processing makes it possible to easily set up pension schemes, link these schemes to your employees, and manage the employer and employee contributions that are paid into the schemes. Advanced Pension Processing also allows you to send enrolment and contribution files to NEST and NOW: Pensions.

To set up Opera for auto enrolment we recommend that you use Advanced Pension Processing.

Please see the Starting with Advanced Pension Processing Help topic for steps to change to using this feature.

Use Auto Enrolment Processing

An option that enables the facilities for pension auto enrolment in the Payroll.

If this is selected, you can use the Payroll - Global Changes - Auto Enrolment Updates command to auto-enrol eligible employees into approved pension schemes. You will also be able to maintain their pension details and deduct both employee and employer pension contributions.

Important: Do not select this option before the pay period in which your staging date falls.

Align Pay Reference Period with Tax Period

Important: If you set up Opera for Auto Enrolment Processing before this option was introduced then please contact your Pegasus partner before using it. In this situation there may be some manual amendments needed after selecting this option.

If this option is selected the PRP is aligned with the tax period (from the 6th of a month to the 5th of the following month).

4/4/5 Payrolls

You should select this option if you run a 4/4/5 monthly payroll (where employees are paid monthly but are sometimes paid for four weeks’ work and at other times for five weeks’ work). Opera can then assess employees' earnings for auto enrolment using the monthly auto enrolment thresholds (for 4/4/5 payrolls Opera cannot assess monthly paid earnings using multiples of weekly auto enrolment thresholds).

This option is enabled if the Use Auto Enrolment Processing option is used on the Set Options form.

COMP Scheme in Use

This option is ignored.

This option allowed COMP schemes to be used. COMP schemes are no longer allowed.

Employer Pays COMP

This option is ignored.

This option controlled whether the employer paid both the employee's and employer's COMP contributions. COMP schemes are no longer allowed.

Entitled to Small Employer's Relief

An option that determines whether your company is entitled to the Small Employer's Relief for statutory payments.

Use Full SMP Processing

An option that determines whether you want the application to calculate Statutory Maternity Pay entitlement for employees expecting a baby.

If the option is cleared, you must enter SMP payments manually when they apply in any given period. You can also record the maternity absence in the employee's diary within the Personnel application.

If the option is selected, a number of areas of the payroll are changed to record settings and parameters that enable the application to automatically calculate an employee's SMP entitlement for the pay period.

The Payroll - Processing - SMP Details form is also available to record the SMP details for an employee.

Pay SMP/SPP/ SAP/ASPP to End of Period

An option that determines whether Statutory Maternity Pay, Statutory Paternity Pay (for births or adoption), Additional Statutory Paternity Pay (for births or adoption) or Statutory Adoption Pay is paid for maternity/paternity pay weeks either up to and including the usual payment date or up to the end of the pay period.

This option covers circumstances that could otherwise leave an employee paid less SMP, Statutory Paternity Pay (for births or adoption), or SAP than expected. For example, if employees are paid mid-month but the pay is intended to cover wages to the end of the month, selecting this option will ensure they receive all due statutory payments.

Shared Parental Pay (ShPP) has replaced Additional Statutory Paternity Pay. ShPP allows eligible partners to share parental leave. The rules for adoptions are similar to new births.

For details about ShPP, please visit www.gov.uk/shared-parental-leave-and-pay/overview.

For instructions on setting up ShPP in Opera please see the How to Set Up Shared Parental Pay Help topic.

Important: If the option is cleared, the statutory payments are only be paid up to the payment date.

Use Full SPP (Birth) Processing

An option that determines whether you want the application to calculate Statutory Paternity Pay (SPP) entitlement for employees. If the option is cleared, you enter SPP payments manually when they apply in any given period. You can also record the paternity absence in the employee's diary within the Personnel application.

If the option is selected, a number of areas of the payroll are changed to record settings and parameters so that SPP is automatically calculated for those entitled employees for the pay period.

The Payroll - Processing - SPP (Birth) Details form is available to record the SPP details for an employee.

Use Full SSP Processing

An option that determines whether you want the application to calculate Statutory Sick Pay (SSP) entitlement for employees.

If the option is cleared, you must enter SSP payments manually when they apply in any given period. You can also record the sickness days in the employee's diary in the Personnel application.

If the option is selected, a number of areas of the payroll application are changed to record settings and parameters that enable the application to automatically calculate an employee's SSP entitlement for the pay period.

The Payroll - Processing - SSP Absence form is also available to record the SSP sickness days for an employee.

Pay SSP to End of Period

An option that determines whether Statutory Sick Pay (SSP) is paid to the end of the current period or only up to and including the usual payment date.

Making SSP payments up to the usual payment date can cause problems if employees are paid in arrears. In these circumstances, the option can be selected so they receive any SSP entitlement up to the end of the pay period instead.

Important: If the option is cleared, SSP will only be paid up to the payment date.

SSP Qualifying Days Pattern

Only available if Use Full SSP Processing is selected.

An option that determines the default qualifying pattern for Statutory Sick Pay calculations for the currently selected group. You click to select each day that qualifies for SSP and the application displays the number of days in the Days box alongside.

The default selection is Monday to Friday (5 days).

Split-Week Payments of SMP/SAP

Only available if Use Full SMP Processing or Use Full SAP Processing is selected.

This option defines whether split Statutory Maternity Pay (SMP) and Statutory Adoption Pay (SAP) payments are permitted for the payroll group to align the payments with wages and salary payments.

Split SMP payments were introduced by the Work & Families Act.

The employer, not the employee, decides whether to split SMP and SAP payments.

Use Full SPP (Adopt) Processing

An option that determines whether you want the application to calculate Statutory Paternity Pay (SPP) for adoption entitlement for employees adopting a child. If the option is cleared, you can enter SPP for adoption payments manually when they apply in any given period. You can also record the absence in the employee's diary in the Personnel application.

If the option is selected, a number of areas of the payroll are changed to record settings and parameters that enable the application to automatically calculate an employee's SPP (Adopt) entitlement for the pay period.

The Payroll - Processing - SPP-Adopt Details form is available to record the SPP for adoption details for an employee.

Use Full SAP Processing

An option that determines whether you want the application to calculate Statutory Adoption Pay (SAP) entitlement for employees adopting a child.

If the option is cleared, you can enter SAP payments manually when they apply in any given period. You can also record the absence in the employee's diary in the Personnel application.

If the option is selected, a number of areas of the payroll are changed to record settings and parameters that enable the application to automatically calculate an employee's SAP entitlement for the pay period.

The Payroll - Processing - SAP Details form is available to record the SAP details for an employee.

Use Full ASPP (Birth) & (Adopt) Processing

Options Page 3 (Keep History, Attachments Orders & Pension Settings)

Box	Description
Pay Period	The pay frequency for the group. You can select one of the following from a list: Weekly, Fortnightly, Four-weekly or Monthly. If you wish to use a multi-frequency payroll, you must select the Use Groups option described earlier. Each employee must be assigned to a group and each group can then have its own frequency. When you subsequently carry out any payroll processing, you will be prompted to choose the group(s) to which processing applies. For example, if you pay some employees weekly and some monthly, you must set up one group for each frequency. We strongly advise you not to change the pay frequency once you have begun processing for a group or company.
Permitted Payment Method	An option that determines the permitted payment methods that can be used within employee profiles. You can include the corresponding code from the following list: A Autopay, B BACS, C Cash or Q Cheque. For example, to allow payment methods of BACS, Cash, and Cheques, you would enter BCQ in this box. Important: Barclays 'Bobs' payments (payment method 'O') are no longer supported by Barclays Bank. If this payment method is in this box the message Invalid Pay Method entered is displayed if you try to change anything on the Set Options form. You must remove payment type 'O' to save any changes.
Keep ...
Pay Period Summary Image	The number of pay periods for which you wish to retain the 'this period's summary' image. The application will retain the this period's summary image for the number of periods specified. You can view the information using the Processing - Action - History command. You must keep at least one year's history.
Printed Payslips	The number of pay periods to keep payslip images in Opera.
Web/E-mail Payslips	This option is used to record the number of pay periods to keep payslips sent to employees by email.
Web/E-mail P60s	This option is used to record the number of tax years to keep P60s sent to employees by email. Tip: You can view each employee's P60s on the Web P60s form from the Payroll - Processing - History form.
Statutory Payments	The number of years you want the payroll to retain a history of Statutory Maternity Pay, Statutory Sick Pay, Statutory Paternity Pay, and Statutory Adoption Pay. This must be a minimum of three years.
Payments and Deductions	The number of periods you want the payroll to retain a history of your employees' payments and deductions.
Tax Year History	The number of years of tax history you want to retain for employees on the Payroll - Processing - Tax Year History form. Tax year history includes all pay details for each employee as at the tax-year end. The 2019-20 tax year is the first tax year for which history can be retained.

L.E.L. for Pension U.E.L. for Pension	The lower and upper earnings limit for pension calculations where either of these differ from the LEL and/or UEL held in the NI tables. The limit(s) you enter here apply to all employees who do not have a LEL and/or UEL entered on their employee record. The application refers to the employee record for a LEL and UEL. If either contains a value, the values for both limits are taken from the employee record. If both limits are zero on the employee record, the application uses the limits you define here and if these are also zero, the limits set in the NI tables are used. Advanced Pension Processing: These values are used for pension calculations only if the Use Advanced Pension Processing option on this form is not selected. If that option is selected, the employee can be allocated a pension scheme which includes a cap for pension calculations. See the Payroll - Maintenance - Pension Scheme Help topic for more information.
Max. Charity Contributions P.A.	The maximum amount of charity contributions an employee can make and for which tax relief applies. The exception report highlights any employee who is making charity contributions in excess of this amount. If no value is entered, this means no limit applies.
Max. Tax Refund for Starter	The maximum tax refund that can be paid for a new starter. The exception report highlights any new employee with a tax refund greater than this amount. If left blank, any value tax refund is permitted.
Value For Low Gross Pay	The value used to define a low gross pay threshold. A message is generated on the exception report where an employee's gross pay falls below this amount. If left blank, no check is performed.
Value for Low Net Pay	The value used to define a low net pay threshold. A message is generated on the exception report where an employee's net pay falls below this amount. If left blank, no check is performed.
Max. Cheque Value	The maximum value of a cheque that can be produced. Enter the value in whole numbers. If an employee is being paid by cheque and the net pay exceeds the maximum cheque value, no cheque will be printed. If no value is entered, this means no upper cheque limit applies.
Alternative Co. ID for N/L	An identifier that determines which Nominal application company is used for payroll postings. You can incorporate several payrolls (each operating for a different company identifier) into one Nominal application. For example, you might have company 'Y' for weekly payrolls and company 'Z' for monthly payrolls, both making postings in the nominal ledger for company 'A'.
Tax Regulatory Limit %	This limit applies to all tax code types, including D codes, BR, OT. The calculation commands limit the amount of tax that can be deducted to this percentage of each employee’s gross pay or pension. This applies to both the main calculation (Payroll – Calculation) and the individual calculation (Payroll – Processing – Calculate) commands.
Holiday pay averaging
Weeks for Holiday Pay Average	The number of weeks pay used in the calculation of the average holiday pay for weekly paid employees. This is also used on the Holiday Pay Average report. This option is used for weekly payrolls only. From 6 April 2020, the number of weeks that must be used to calculate average weekly earnings for holiday pay - the 'Holiday Pay Reference Period' - increases from 12 weeks to 52 weeks. This change is designed to even out seasonal variations in pay for workers in seasonal occupations without fixed hours or pay. To not use holiday pay averaging, set this option to zero.
Days for Holiday Pay Average	The number of days in a working week used in the calculation of the daily average for holiday pay for weekly paid employees. This is also used on the Holiday Pay Average report. This setting can also be defined on the following: Employee Profiles - which is used for all employee records linked to the profile. Employee records - which is used only for the relevant employee record. This makes it possible to record different length of the working day for different employees, For example, let's say that most of your weekly-paid employees work 5-day weeks but some others work 3-day weeks, and just one employee works 2 days a week. You would create an Employee Profile for those employees who work 5 days and another profile for those who work 3 days - and update the Days for Holiday Pay Average accordingly, and for the employee who works 2 days you would update the number of days just on their employee record. This option is used for weekly payrolls only.
Holiday Pay Payment Number	The number of the payment profile used for holiday pay entitlement. This option is enabled when the Weeks for Holiday Pay Average box has been updated. It is used for weekly payrolls only.

Deduct Admin Fee	An option that determines whether to deduct an administration fee for attachment orders. This setting will apply to all groups. The fee itself is defined in the following boxes.
Standard Fee	The standard administration fee to apply when attachment orders are calculated for employees. This only applies if the Deduct Admin Fee option is selected. Does not affect Scottish attachment orders.
Scottish Fee	The administration fee to apply when Scottish attachment orders are calculated for employees. This only applies if the Deduct Admin Fee option is selected.
Pension Export File Settings for this Payroll Group	You can optionally enter default pension group and payment source codes for specific payroll groups. If these default codes are not entered the codes on the pension scheme itself are instead used when you add the employee's pension scheme to their record. You can change the codes for each employee afterwards using the Payroll - Processing - Action - Pensions - Employee Pensions - Additional Details form. Why you might enter default codes on the Set Options form - You could record different payment sources for the two groups if pension contributions for weekly-paid employees are paid from one bank account but contributions for monthly-paid employees are paid from a different bank account. - You could record different pension groups for two payroll groups if the frequency of paying pension contributions is different for weekly-paid and monthly-paid employees.
	Pension Group	Enter a default pension group for NEST pensions or NOW: Pensions for the payroll group, if required.
	Payment Source	Enter a default payment source for NEST pensions for the payroll group, if required. This is not required for NOW: Pensions. Payment Sources are maintained on the Payroll - Maintenance - Pension Payment Source form.
	Payroll Code	Enter the payroll code used when setting up the scheme with NOW: Pensions. You may have used separate payroll codes for different pay frequencies, for example 'MNTH' for a monthly payroll or 'WEEK' for a weekly payroll. This is not required for NEST pensions.

Box

Description

Pay Period

The pay frequency for the group. You can select one of the following from a list: Weekly, Fortnightly, Four-weekly or Monthly. If you wish to use a multi-frequency payroll, you must select the Use Groups option described earlier. Each employee must be assigned to a group and each group can then have its own frequency. When you subsequently carry out any payroll processing, you will be prompted to choose the group(s) to which processing applies. For example, if you pay some employees weekly and some monthly, you must set up one group for each frequency. We strongly advise you not to change the pay frequency once you have begun processing for a group or company.

Permitted Payment Method

An option that determines the permitted payment methods that can be used within employee profiles. You can include the corresponding code from the following list: A Autopay, B BACS, C Cash or Q Cheque. For example, to allow payment methods of BACS, Cash, and Cheques, you would enter BCQ in this box.

Important: Barclays 'Bobs' payments (payment method 'O') are no longer supported by Barclays Bank. If this payment method is in this box the message Invalid Pay Method entered is displayed if you try to change anything on the Set Options form. You must remove payment type 'O' to save any changes.

Keep ...

Pay Period Summary Image

The number of pay periods for which you wish to retain the 'this period's summary' image. The application will retain the this period's summary image for the number of periods specified. You can view the information using the Processing - Action - History command.

You must keep at least one year's history.

Printed Payslips

The number of pay periods to keep payslip images in Opera.

Web/E-mail Payslips

This option is used to record the number of pay periods to keep payslips sent to employees by email.

Web/E-mail P60s

This option is used to record the number of tax years to keep P60s sent to employees by email.

Tip: You can view each employee's P60s on the Web P60s form from the Payroll - Processing - History form.

Statutory Payments

The number of years you want the payroll to retain a history of Statutory Maternity Pay, Statutory Sick Pay, Statutory Paternity Pay, and Statutory Adoption Pay. This must be a minimum of three years.

Payments and Deductions

The number of periods you want the payroll to retain a history of your employees' payments and deductions.

Tax Year History

The number of years of tax history you want to retain for employees on the Payroll - Processing - Tax Year History form. Tax year history includes all pay details for each employee as at the tax-year end. The 2019-20 tax year is the first tax year for which history can be retained.

L.E.L. for Pension

U.E.L. for Pension

The lower and upper earnings limit for pension calculations where either of these differ from the LEL and/or UEL held in the NI tables. The limit(s) you enter here apply to all employees who do not have a LEL and/or UEL entered on their employee record.

The application refers to the employee record for a LEL and UEL. If either contains a value, the values for both limits are taken from the employee record. If both limits are zero on the employee record, the application uses the limits you define here and if these are also zero, the limits set in the NI tables are used.

Advanced Pension Processing: These values are used for pension calculations only if the Use Advanced Pension Processing option on this form is not selected. If that option is selected, the employee can be allocated a pension scheme which includes a cap for pension calculations. See the Payroll - Maintenance - Pension Scheme Help topic for more information.

Max. Charity Contributions P.A.

The maximum amount of charity contributions an employee can make and for which tax relief applies. The exception report highlights any employee who is making charity contributions in excess of this amount. If no value is entered, this means no limit applies.

Max. Tax Refund for Starter

The maximum tax refund that can be paid for a new starter. The exception report highlights any new employee with a tax refund greater than this amount. If left blank, any value tax refund is permitted.

Value For Low Gross Pay

The value used to define a low gross pay threshold. A message is generated on the exception report where an employee's gross pay falls below this amount. If left blank, no check is performed.

Value for Low Net Pay

The value used to define a low net pay threshold. A message is generated on the exception report where an employee's net pay falls below this amount. If left blank, no check is performed.

Max. Cheque Value

The maximum value of a cheque that can be produced. Enter the value in whole numbers. If an employee is being paid by cheque and the net pay exceeds the maximum cheque value, no cheque will be printed. If no value is entered, this means no upper cheque limit applies.

Alternative Co. ID for N/L

An identifier that determines which Nominal application company is used for payroll postings. You can incorporate several payrolls (each operating for a different company identifier) into one Nominal application. For example, you might have company 'Y' for weekly payrolls and company 'Z' for monthly payrolls, both making postings in the nominal ledger for company 'A'.

Tax Regulatory Limit %

This limit applies to all tax code types, including D codes, BR, OT. The calculation commands limit the amount of tax that can be deducted to this percentage of each employee’s gross pay or pension. This applies to both the main calculation (Payroll – Calculation) and the individual calculation (Payroll – Processing – Calculate) commands.

Holiday pay averaging

Weeks for Holiday Pay Average

The number of weeks pay used in the calculation of the average holiday pay for weekly paid employees. This is also used on the Holiday Pay Average report.

This option is used for weekly payrolls only.

From 6 April 2020, the number of weeks that must be used to calculate average weekly earnings for holiday pay - the 'Holiday Pay Reference Period' - increases from 12 weeks to 52 weeks.

This change is designed to even out seasonal variations in pay for workers in seasonal occupations without fixed hours or pay.

To not use holiday pay averaging, set this option to zero.

Days for Holiday Pay Average

The number of days in a working week used in the calculation of the daily average for holiday pay for weekly paid employees. This is also used on the Holiday Pay Average report.

This setting can also be defined on the following:

Employee Profiles - which is used for all employee records linked to the profile.
Employee records - which is used only for the relevant employee record.

This makes it possible to record different length of the working day for different employees, For example, let's say that most of your weekly-paid employees work 5-day weeks but some others work 3-day weeks, and just one employee works 2 days a week. You would create an Employee Profile for those employees who work 5 days and another profile for those who work 3 days - and update the Days for Holiday Pay Average accordingly, and for the employee who works 2 days you would update the number of days just on their employee record.

This option is used for weekly payrolls only.

Holiday Pay Payment Number

The number of the payment profile used for holiday pay entitlement.

This option is enabled when the Weeks for Holiday Pay Average box has been updated. It is used for weekly payrolls only.

Deduct Admin Fee

An option that determines whether to deduct an administration fee for attachment orders. This setting will apply to all groups. The fee itself is defined in the following boxes.

Standard Fee

The standard administration fee to apply when attachment orders are calculated for employees. This only applies if the Deduct Admin Fee option is selected. Does not affect Scottish attachment orders.

Scottish Fee

The administration fee to apply when Scottish attachment orders are calculated for employees. This only applies if the Deduct Admin Fee option is selected.

Pension Export File Settings for this Payroll Group

You can optionally enter default pension group and payment source codes for specific payroll groups. If these default codes are not entered the codes on the pension scheme itself are instead used when you add the employee's pension scheme to their record. You can change the codes for each employee afterwards using the Payroll - Processing - Action - Pensions - Employee Pensions - Additional Details form.

Why you might enter default codes on the Set Options form

Pension Group

Enter a default pension group for NEST pensions or NOW: Pensions for the payroll group, if required.

Payment Source

Enter a default payment source for NEST pensions for the payroll group, if required. This is not required for NOW: Pensions.

Payment Sources are maintained on the Payroll - Maintenance - Pension Payment Source form.

Payroll Code

Enter the payroll code used when setting up the scheme with NOW: Pensions. You may have used separate payroll codes for different pay frequencies, for example 'MNTH' for a monthly payroll or 'WEEK' for a weekly payroll.

This is not required for NEST pensions.