Slide 4 - Oracle Applications Cloud Release 9
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Welcome to the Release 9 Training for Oracle Fusion HCM Enhancements.
In this session, we’ll cover the enhancements for EMEA localizations specifically made for the UK within this release.
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Slide 5 - Agenda
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For the enhancements covered in this training, I will give an overview, followed by more detail presentation to explain how you can use them.
I'll walk you through a short demonstration on showing you where the data is caputured for RTI and the navigation path.
I will explain what you need to consider before uptake of these features in your business, and what you need to know including any pre-requisites that are necessary.
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Slide 6 - Summary of Enhancement Capabilities
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The next 4 slides give a summary of the features covered in this training. The items covered are:
Real Time Information (in short RTI) which consists of:
• Additional Data Capture at TRU and Person level
• Additional PAYE Calculation Components for New Hires, Pension and Expatriate Notifications
• New Processes and Reports for outgoing messages to HMRC for
• Full Payment Submission (FPS)
• Employer Payments Summary (EPS)
• National Insurance Verification Request (NVREQ)
• Employer Alignment Submission (EAS)
• New Payroll Flow to process incoming reply messages for National Insurance number verification (NVREP) including employee information that gets updated.
• and RTI initialization process (for the purpose of migration to Fusion RTI)
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Slide 7 - Summary of Enhancement Capabilities
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You can now set up and process Court Orders that can be deducted from your employees via payroll, So I will cover the
• Set-up Court Order Elements via Element Template
• Data Capture at Person level Calculation Card Component and Details
• and I will show you the Payroll Process delivered to process the Court Orders
• Pensions Automatic Enrolment is now available in this release and for that I will cover:
• Data Capture at TRU and PSU level
• Data Capture at Person level Calculation Card Component and Details
• the Automatic Enrolment Processes that have been delivered
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Slide 8 - Summary of Enhancement Capabilities
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Student Loan deductions can be made as per the rules defined in legislation. For this feature I will cover:
•The Set-up of Student Loan Elements via Element Template
• Data Capture at Person level Calculation Card Component
• And Payroll Processing for UK Student Loans
• Finally, I will briefly go through the Legislative Updates for 2014\15 Tax Year namely:
• The Update to PAYE, National Insurance and other statutory thresholds
•And Amendment to Tax Code validations (where FT and NI are invalidated)
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Slide 9 - Summary of Enhancement Capabilities
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In this release for UK we have included the uptake of 2 Global Reports:
• Payroll Balance Report
• Element Result Report
• P45 process I'll cover the P45 Form (both, Plain Paper\Pre-Printed versions), the EDI File and the Audit Report
• Start of Year Process will cover:
• Tax Code P9X uplift,
Updating the Tax Basis to Cumulative
And clearing the P45 Taxable Pay and Tax Paid values
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Slide 10 - Enhancements Overview
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Lets us now look at the enhancements in detail starting with the overview of Real Time Information (which we will refer to as RTI from now on):
Additional Data capture has been introduced at 3 different levels –
Tax Reporting Unit,
Person Information
And Statutory Deduction Card.
The PAYE Component Details area has been extended to capture the mandatory information required for RTI on new starters, Pensioner Notification and Expatriate Notification.
New processes and reports have been introduced to allow RTI data extract for outgoing messages to HMRC for:
Full Payment Submission (referred to as FPS)
Employer Payment Summary (referred to as EPS)
NI number Verification Request (referred to as NVREQ)
Employer Alignment Submission (referred to as EAS).
There is also a new task created to process the incoming message from HMRC called NVREP (short for NI Number Verification Reply).
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Slide 11 - RTI – Additional Data Capture - TRU
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Additional Data Capture will enable you to enter the mandatory and optional data that must be present on the outgoing files for RTI and these are:
Employer Accounts Office Reference Number (which is mandatory)
Employer Contracted out Scheme Number (known as ECON and is given by the Pension authorities)
Optional items include Service Company Indicator
Corporation Tax Reference
Self Assessment Unique Identifier
Mandatory data plus any optional data mentioned above must be entered before you start running RTI processes. Failure to do so will result in rejection of the RTI files by HMRC.
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Slide 12 - RTI – Additional Data Capture - Person Information
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As part of this data capture the Person Legislative Information detail has been extended for the new hire data fields that are required for RTI. The new data items added here are:
National Insurance Verification status and additional information related to the verification reply from HMRC;
Correlation ID (given on the Acknowledgement message received from a HMRC reply);
And Employee's Partner Information data – which is required when Additional Statutory Paternity Payments are reported on the FPS.
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Slide 13 - RTI - Statutory Deductions Card – PAYE Component
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For RTI, the PAYE Component of the Statutory Deductions Card has been extended so that you can now enter the necessary data for employees at this level. The data items you can enter here are:
The Hours Worked band
Periods covered in the FPS submission (if more than one period is covered)
Various Indicators for reporting employment information (for example if this is a one off payment; or if payment is made to a non-individual) shown here as check boxes;
Certain information for HMRC Payroll ID (which is for use when migrating to Fusion HCM, so that new & old Payroll ID’s can be correctly reported for the first FPS run in Fusion)
And also NI YTD value reporting indicator which you must check this if multiple employments are aggregated for NI only. By checking this box you are indicating that this is the HMRC Payroll ID where the aggregated year to date values on NI will be reported for RTI)
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Slide 14 - PAYE Component Details – Starter Notification
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Another area where RTI Data capture has been extended is the PAYE Calculation Component. Here, three new Component Detail records have been added:
A New starter Declaration component - which you must use for all new employee hires;
A Pensioner Notification component - which you must complete when a new Pensioner record is set up (this is the equivalent of the old PENNOT)
And an Expatriate Notification component - that must be completed when setting up a new Expatriate record (this is equivalent of the old P46EXPAT statement).
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Slide 15 - PAYE Component Details – New Starter Declaration
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Now let us look at each of the new PAYE Component in turn, to see the extra details that have been added to each component.
The component you can see here is the New Starter Declaration;
The field 'Statement' is mandatory and has a pre-defined list of values as required by HMRC Here you can select the appropriate one as required;
The indicator for Student loan deduction should be checked if the new hire continues to pay the loan;
There is also a field called 'Not Paid before Tax Year end' which is optional and can be checked if relevant.
The field ‘Filed with HMRC’ is an auto-generated flag from a successful FPS process to indicate that the starter information has been sent to HMRC.
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Slide 16 - PAYE Component Details – Pensioner Notification
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The second new component is the Pensioner Notification. There are two mandatory items on this component.
The Annual Pension and the Date Pension Started and you must complete both of these for RTI.
The Recently Bereaved indicator is for anyone who is in receipt of pension because they are bereaved. Check this field if applicable.
Again, the field ‘Filed with HMRC’ is an auto-generated flag from a successful FPS process to indicate that the starter information has been sent to HMRC.
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Slide 17 - PAYE Component Details – Expatriate Notification
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The third and last new component is the Expatriate Notification.
It has three fields –
A mandatory field for Expatriate Statement, which is a pre-defined list of values as stipulated by HMRC. You should select the value that is applicable to the new expatriate record.
Two optional indicators are also present on this component - one for EEA Citizen and another for the EPM6 Scheme. You can check these as applicable.
Here too, the field ‘Filed with HMRC’ is an auto-generated flag from a successful FPS process.
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Slide 91 - RTI - Processes and Reports Outgoing Messages
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As well as additional data capture which I have demonstrated, there are new processes and reports introduced as part of the RTI Enhancement. These should be used to create outgoing RTI files in the correct format for submitting to HMRC. These processes are:
Full Payment Submission
Employer Payment Summary
National Insurance Number Verification Request and
Employer Data Alignment
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Slide 92 - RTI Outgoing Message– Full Payment Submission (FPS)
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Now let us look at each of the new processes in turn starting with the Full Payment submission (also known as FPS).
Full Payment Submission is a new flow which has been introduced to report employee payments made via your payroll. The process will:
Pick up all the employees processed by Pre-payment run indicated (via the parameter);
Extract all the relevant payment data for those employees and create an Archive;
It will create the Electronic Data Interchange in the format required for transmission to HMRC;
It will also produce an audit report with the information extracted and any error or warnings found for employee data.
This FPS flow also has a number of parameters as seen in the screenshot:
You will need to complete these parameters:
Payroll Statutory Unit;
Payroll for which this FPS is required;
The Prepayment flow name which is to be used for the extract;
Submission Type that indicates if this is a test or live run; the default is 'Live'
Final Submission parameter - if this is the final FPS for either
last one for the tax year
Or
a ceased PAYE scheme.
Note that those parameters marked with an asterisk are mandatory.
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Slide 93 - RTI Outgoing Message– Full Payment Submission (FPS)
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There are also a set of optional parameters for FPS which are classed as ‘Declarations’ that enable yopu to declare information to HMRC on things such as:
Free of Tax Payments made to Employee
Employee pay has been made to a third party;
Expenses and Benefits from others received;
If anyone is employed outside of the UK;
If P11D or P11D(b) is due.
These optional parameters must be completed as required when you are submitting the last FPS for
End of the Tax Year for a PAYE scheme where you select 'Yes - Final for the Year'
or
when you are submitting the last FPS for a ceased PAYE scheme where you select Yes - Final for ceased scheme'.
If the parameter is set to 'Yes - final for ceased scheme', then you must also enter the 'Date scheme ceased'.
One other optional parameter ‘Report HMRC Payroll ID Change’ is for completion when you run the RTI Initialization process (which is also a new task flow that will be covered in the later slides).
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Slide 94 - RTI Outgoing Message– Full Payment Submission (FPS)
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There will be output generated from FPS process in the form of~:
A Reconciliation Report that shows the employee records extracted by the process, with their payment & other details plus
An EDI file with all information as described in the MIG, which is what you would submit to HMRC.
An example of both the reports is shown here.
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Slide 95 - RTI Outgoing Message– Employer Payment Summary (EPS)
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Next we look at the process for Employer Payment Summary. EPS
This process is to report:
Values of Statutory Payments if different from those derived by HMRC from the FPS sent each tax month;
Here you must also Indicate if the EPS being sent is the Final one for the tax year or the final one for a ceased PAYE scheme.
The EPS process will
Pick up all tax year to date balances accumulated for Statutory Payments;
Create an Archive and the EDI file for transmission to HMRC
and Produce an audit of the information extracted.
Mandatory parameters for this process are:
Payroll Statutory Unit; Tax reporting Unit
EPS Date, which has pre-defined list of tax period end dates within the relevant tax year
Submission type – to indicate if it is a test or live run;
Optional parameters are also available and are to be used under certain circumstances such as:
Final Submission for the Tax Year
If PAYE scheme has ceased and what the cessation date is
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Slide 96 - RTI Outgoing Message– Employer Payment Summary (EPS)
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Here’s an example of the output produced from this process.
It will be an EDI file shown here, for EPS message with:
Details of the Recovery amounts for Statutory Payments
All Employer related information required by HMRC
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Slide 97 - RTI Outgoing Message– NI Number Verification Request (NVREQ)
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With the introduction of RTI, HMRC has provided a facility to request or verify National Insurance numbers for your employees if you want. This is done by submitting a request to HMRC in the form af an EDI message NVREQ. This process has been provided as part of the RTI enhancement called NI Number Verification (NVREQ)
You can run this process for either:
A single employee