User guide for Hampshire County Council’s payroll provision with local input via SAP
Version 0.2
13 May 2011
Document location: I:\Shared\HR\HR Service Centre\HRSC Projects\Academy Schools\User guide and contract\User guide, Academies using SAP, 2011-05-13, V0.2.doc
Table of Contents
1 Introduction 3
2 Service delivery 3
3 Hampshire County Council contacts 3
Pay and Contract Support Services (PCSS) 3
County Treasurer’s operations 4
4 General approach 4
Authorisation 4
Deadlines 4
Overpayments 4
Communications with Academy employees 4
5 New starters 4
6 Changes 5
Amendments 5
Change of bank details 5
Student loans 5
7 Staff absence recording 5
8 Family friendly – maternity, paternity and adoption 5
9 Additional payments 6
10 Child care vouchers 6
11 Staff leaving the Academy 6
12 Payment of salary 7
13 Reporting 7
Payroll report 7
Finance postings 8
Monthly payment of tax, NI payments and pensions 8
Additional reporting 8
14 Local Government Pensions Scheme (LGPS) 8
15 Teachers Pensions 9
16 Applying pay awards 10
17 Year end 10
18 HR services 10
CRB and List 99 11
Maintaining contractual documentation 11
Updating paid weeks 11
Half pay and nil pay reports 11
19 Charges 11
Annual charges 11
System developments 11
Additional services 11
20 Academy contact details 11
Version Control
Version / Date of Change / Change by / Brief Description0.1 / 11 May 2011 / CT / First Draft
0.2 / 13 May 2011 / CT / Final Draft
User guide for Payroll Delivery with local input on SAP
1 Introduction
Hampshire County Council is an experienced payroll provider to internal customers based in Departments and Hampshire schools. We also provide payroll services to external customers including foundation, academy and religious schools, charities and other district and borough councils.
The system used for payroll is SAP; this is an integrated enterprise system and combines payroll and personnel data in one unit. SAP is a recognised global system and is excellent at running a range of payrolls, with robust business continuity and data integrity. Changes in employment law and pay legislation are implemented via regular SAP upgrades.
Hampshire County Council is experienced in payroll delivery for various terms and conditions of employment and specialise in:
· Teachers pay and conditions
· Support staff based on the Green Book conditions of service
· Soulbury
· Joint Negotiating Committee (JNC) for Youth and Community Workers.
2 Service delivery
The service is delivered through a self service model where hold the master data and input directly to SAP via SAP transactions.
Local input to SAP will need to meet the published SAP deadline dates each month to ensure that payment is made in that month. These are published on our website http://www3.hants.gov.uk/pcss/payroll-first.htm.
3 Hampshire County Council contacts
Pay and Contract Support Services (PCSS)
PCSS will provide support with the administration, transactions and ensure pay for employees. Contact details are:
Pay & Contract Support Services
Hampshire County Council, Hampshire House, 84-98 Southampton Road, Eastleigh, Hampshire SO50 5PA
Tel 023 8038 3000 option 3 e-mail
County Treasurer’s operations
The technical aspects of the payroll system are maintained and developed through County Treasurer’s Payroll Technical Team. Contact details are:
Payroll Technical Team, Hampshire County Council, ElizabethIICourtSouth, Winchester SO23 8UB
Tel 01962 846528 e-mail
4 General approach
Authorisation
All starters, leavers and changes should have appropriate authorisation before any work is processed. will have security roles set up in SAP to ensure correct access to transactions.
Deadlines
Deadlines for payroll running are agreed between and Hampshire County Council quarterly in advance and the timetable published on our customer WebPages.
Overpayments
Any overpayments identified by you can have an agreed and authorised payment plan set up for repayment via the payroll system. Repayments need to be agreed between the employee and . Please notify PCSS of the agreed repayment plan so that recovery can be set up on the system for repayment. If required PCSS will provide support in calculating the overpaid amount.
If an overpayment occurs for a leaver then you will need to invoice the employee for the outstanding sum.
Communications with Academy employees
Any concerns your employees have with their pay should be addressed through your designated, authorised staff. PCSS will not normally correspond directly with employees of .
5 New starters
can input new starters using PA42 SAP transaction.
As Hampshire’s payroll system links with Pensions Services, is not required to send the pensions election form for new support staff starters in LGPS.
UNISON subscriptions will need to be set up locally using a recurring deduction as part of the hiring action. will be responsible for payment to the union(s) directly.
To ensure correct tax deductions for new starters please forward the P45/P46 information to PCSS for action on the system. We will return the original document for your records.
6 Changes
Amendments
Any changes to an employee’s pay or personal details can be input using SAP transaction PA30 and/or PA42.
Change of bank details
Changes can be input directly to SAP using transaction PA30 with written authorisation from the member of staff.
All changes should be from the first of a month. Please ensure staff keep their old bank account open until the first salary payment is made to their new account.
Student loans
This would normally be picked up through appropriate information on the P45/P46 and the starter form or from the HMRC to PCSS. If you are informed of any repayments or cessation of loans directly from the HMRC this should be sent to PCSS for action on the payroll system.
7 Staff absence recording
Any absence will need to be set up on the payroll system using PA30 transaction and include:
· Sickness
· Industrial accident or disease
· Leave without pay
· Accident involving a third party.
An absence notification which affects an employee’s pay, entered on SAP after the month that it applies, will have any adjustments made in the month in which it is processed.
PCSS runs monthly reports to identify employees no longer entitled to SSP. You can then complete the SSP1 where appropriate and forward the your employee. The form can be found on the DWP website http://www.dwp.gov.uk/advisers/claimforms/ssp1_print.pdf.
8 Family friendly – maternity, paternity and adoption
Family friendly absences are set up on the payroll system centrally following receipt in PCSS of a fully completed and authorised form to ensure appropriate deduction of salary http://intranet.hants.gov.uk/hr/subjectguide/maternity-home/maternity-forms-2.htm
Maternity notification needs to be returned to PCSS with an authorised copy of the MATB1 Certificate.
There are forms available for notifying PCSS of family friendly leave requests including:
· Maternity
· Paternity
· Adoption.
You will need to ensure that you communicate with the individual concerned regarding their absence.
9 Additional payments
Claims will be paid in the month following the work being carried out (eg overtime) assuming they are input by the payroll cut off date of the month following the work being undertaken. Additional payments include:
· Monthly claims for attendances and allowances (form SAP151)
· Authorisation document for display screen equipment (DSE) eye examination
· Post entry repayment, education and specific skill courses, employee statement of repayment
· Payment of professional fees
· Relocation expenses scheme.
Input to SAP payroll is through CAT2 for time data or PA30 for additional payments.
10 Child care vouchers
If required, it is the responsibility of to arrange a childcare scheme with a chosen provider and administer this scheme locally. You can supply an agreed format of information to the Payroll Technical section, this will ensure a monthly upload to the payroll and appropriate deductions made from salary. will need to pay the child care voucher provider directly.
11 Staff leaving the Academy
Staff leaving your employment need to be set up on the payroll system using SAP PA42, appropriate deductions will be made for any identified outstanding claims or loans.
Payments identified to a member of staff after they have left employment, and a P45 has been issued, will be treated as a payment after leaving in line with the HMRC guidance.
Where appropriate, leavers will have a P45 produced at the end of the month that the member of staff leaves. The P45 will be despatched to for onward transmission to the employee and Hampshire will file with HMRC.
The Academy will need to complete a pensions leaver ST8B form and send this to Pensions Services for LGPS contributors. http://www3.hants.gov.uk/pensions/pensionsinfoforemployers/pensionsleaverformnonteaching.htm
For staff in Teachers Pensions then you will need to complete the TR8 template (available from TP) and upload this via the STU system,.
12 Payment of salary
Every effort should be made to ensure that payroll input is accurate, properly authorised and meets the published deadlines.
staff will be paid by credit transfer on the last working day of the month. You will have your own bank account and allow Hampshire County Council access to send BACS payments direct from your account.
Payslips will be produced on pressure seal stationery for all employees monthly. These will be sent via the courier to for distribution to staff.
Any BACs recalls will need to be requested by you. PCSS will need to be made aware of these so that the payroll system can be updated.
Any urgent payments will need to be raised by you. PCSS will need to be made aware of these so that the correct recovery is set up on the payroll.
Whilst is responsible for resolving issues relating to payment of salary, including the management of over or under payments, PCSS can provide support and guidance.
13 Reporting
Payroll report
PCSS will provide a monthly download to following the payroll run to include details of employee name, personnel number, name of employee group, scale point, contracted hours and SIO order numbers.
Following payroll running but before the BACS file is created Payroll Technical will provide a pay comparison report (from month 2). This will provide a comparison of the current month’s payroll to the previous month and any anomalies can therefore be checked, agreed or corrected.
Finance postings
Payroll Technical will prepare a monthly spreadsheet of payroll related journals for you using agreed coding. This will produce finance information from the payroll to post to your finance system assuming you do no use SAP finance.
Monthly payment of tax, NI payments and pensions
If required by , Payroll Technical are able to provide monthly reconciliation and direct payments to the HMRC via BACS for tax and NI payments. Payment of monthly pensions fund money can also be via BACS to LGPS and Teachers Pension.
If required these payments will be at an additional charge to .
Additional reporting
Hampshire is able to provide agreed reports on a regular basis. These reports are an additional charge and include:
· Absence reports
· Disability and ethnicity
· CRB checks
· Age and gender reports
· Employee service reports.
14 Local Government Pensions Scheme (LGPS)
Academy schools are a Scheduled Body; this means there is a legal requirement to offer LGPS to current and new employees. As schools are required to be their own employer will need to be registered with LGPS as a separate employer.
Monthly returns of payroll information will be made automatically. However, you will be required to make any other returns necessary directly to the pension fund administrator unless you pay an additional charge for Hampshire to provide this service on your behalf.
Hampshire Pensions Services are the pension fund administrators in Hampshire and require a schedule of staff who are TUPE transferring from a current Hampshire school to http://www3.hants.gov.uk/pensions.htm.
The Hampshire payroll solution is linked to Hampshire Pensions Services via SAP which allows the automation of some of the processes that would be a manual interface by using other payroll providers. These include:
· Determining the eligibility for LGPS
· Allocation of the appropriate contribution band
· Set up and deduction of contributions from pay
· Notification to Hampshire Pensions Services of new starters.
· Notification to Hampshire Pensions Services of changes to current employees eg change in hours.
Non-teaching staff will automatically have LGPS deductions set up for all new starters who are employed for three months or more. If a temporary member of staff employed for less than three months has their contract extended they will be put in the LGPS and deductions will be made. The member of staff can elect to have their pension backdated to their start date in the role if they wish and this needs to be communicated to PCSS to adjust the contribution date.
You will need to continue to provide eligible staff with membership packs. If a member of your staff does not wish to join the pension scheme then an opting out form should be received from the staff member to the Academy, sent to Hampshire Pensions Services and copied to PCSS for the adjustment to National Insurance contribution rate.
Staff in LGPS who leave the Academy will need to have a leaver form completed (ST8B) and sent to Hampshire Pensions Services.
Hampshire will prepare the LGPS monthly return in preparation for to sign off and submit to Pensions Services. This will include costs and payments required to the LGPS. Hampshire will also complete the year end return to LGPS which will need to be signed and returned to Pensions Services by .
For an additional charge Hampshire can prepare the ST8B form on your behalf ready for final check and authorisation prior to sending to Hampshire Pensions Services.
15 Teachers Pensions
Hampshire County Council will provide Teachers Pensions (TP) with notifications for all teachers who are leaving the Local Authority to work in . You should then provide TR6 starter notifications, regardless of the fact that they have not changed schools. Both leaver and starter notifications should be submitted using the Secure Transfer Utility (STU) which allows you to send and receive data from TP securely using an encrypted link.
Staff employed on Teachers Pay and Conditions may join the Teachers Pensions scheme. Hampshire County Council will run daily reports to highlight starters, leavers and changes to teacher records in . These will be checked to ensure that the pension is applied correctly and changes will need to be reported directly to Teachers’ Pensions via your STU for application to the Teacher’s pension record.