Version 1.0
16 June 2011
Document location: I:\Shared\HR\HR Service Centre\HRSC Projects\Academy Schools\2 User guide and contract\User guide Academies using SAP 2011-06-08 V1.0.doc
Table of Contents
1Introduction
2Service delivery
3Hampshire County Council contacts
Pay and Contract Support Services (PCSS)
County Treasurer’s operations
4General approach
Authorisation
Deadlines
Overpayments
Communications with Academy employees
5New starters
6Changes
Amendments
Change of bank details
Student loans
Changing pension contribution
7Staff absence recording
8Family friendly – maternity, paternity and adoption
9Additional payments
10Child care vouchers
11Staff leaving the Academy
12Payment of salary
13Travel and expenses
14Reporting
Payroll report
Finance postings
Monthly payment of tax, NI payments and pensions
15Hampshire Pension Fund (LGPS)
16Teachers Pensions
17Applying pay awards and increments
18Year end
19HR services
CRB and List 99
Maintaining contractual documentation
Updating paid weeks
Half pay and nil pay reports
20Charges
Annual charges
System developments
Additional services
21Academy contact details
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
0.3 / 20 May 2011 / CT / Comments from Pensions Services
0.4 / 2 June 2011 / CT / Final comments LT and PS
0.5 / 7 June 2011 / CT / Comments from meeting with Hampshire Pension Fund
0.6 / 8 June 2011 / CT / Further comments from pension fund
1.0 / 16 June 2011 / CT / Final version
User guide for Payroll Delivery with local input on SAP
1Introduction
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.
2Service 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
3HampshireCounty Council contacts
Pay and Contract Support Services (PCSS)
PCSS will provide support with the administration, transactions and ensure pay for employees. Contact detailsare:
Pay & Contract Support Services
Hampshire County Council, Hampshire House, 84-98 Southampton Road, Eastleigh, Hampshire SO50 5PA
Tel 023 8038 3000 option 3e-mail
CountyTreasurer’s operations
The technical aspects of the payroll system are maintained and developed through CountyTreasurer’s Payroll Technical Team. Contact details are:
Payroll Technical Team, Hampshire County Council, ElizabethIICourtSouth, WinchesterSO23 8UB
Tel 01962 846528 e-mail
4General approach
Authorisation
All starters, leavers and changes should haveappropriate 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 CountyCouncil quarterly in advance and the timetable published on our customer WebPages.
Overpayments
Any overpayments identified by youcan 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 withemployees of .
5New starters
can input new starters using PA42 SAP transaction.
As Hampshire’s payroll system links with Hampshire Pension Fund,is not required to send the pensions starter 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.
6Changes
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. Ifyou 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.
Changing pension contribution
If an employee chooses to opt in or opt out of LGPS or TP scheme then this needs to be notified to the pension provider and PCSS so that the National Insurance contribution is changed on the payroll record.
7Staff 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 to your employee. The form can be found on the DWP website
8Family 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
Maternity notification needs to be returned to PCSS with an authorised copy of the MATB1 Certificate.
There are forms available for notifyingPCSS of family friendly leave requests including:
- Maternity
- Paternity
- Adoption.
You will need to ensure that you communicate with the individual concerned regarding their absence.
9Additional 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.
10Child 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.
11Staff leaving the Academy
Staff leaving youremployment need to be set up on the payroll systemusing 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 P45producedat the end of the month that the member of staff leaves. The P45 will be despatched to for onward transmissionto the employee and Hampshire will file with HMRC.
The Academy will need to complete a pensions leaver ST8B form and send this to Hampshire Pension Fund for LGPS contributors.
For staff in Teachers Pensions will need to complete the TR8 template (available from TP) and upload this via the STU system.
12Payment 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 youraccount.
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.
13Travel and expenses
The SAP travel management module of SAP is not available through the payroll system. Therefore the processing of travel claims will be dealt with locally by .
You may wish to pay travel and expenses outside of the payroll system but should you want this paid through the payroll system you will process claims on receipt of a fully completed and authorised claim form. The payment amount will be calculated manually off system and entered as a wage type. Mileage and expenses will need to come under different headingsand will have their own wage types as follows:
WT / Wage Type Long Text / Tax / NI / VAT2575 / Mileage-NT&No NI (recurring payment)
5065 / Mileage:NT & No NI
5075 / Mileage T / /
6261 / Subsist-NoTax-VAT /
6263 / Travel-NoTax-VAT /
6265 / Subsist-Tax VAT T / /
6267 / Travel-Tax VAT T / /
6275 / Subsist-NoTax NoVAT
6276 / Travel-NoTax NoVAT
6277 / Taxi
6278 / Parking\Train
6281 / Subsist-Tax NoVAT T /
6282 / Travel-Tax NoVAT T /
These headings will show on payslips and will be used for expenditure coding.
Due to all mileage payments which are above AMAP limits having tax and NI applied at source, no P11D returns will be required unless there are other benefits in kind incurred.
14Reporting
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 using coding agreed by you. This will produce finance information from the payroll, which you can 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 .
15Hampshire Pension Fund (LGPS)
Academy schools are Scheduled Bodies; this means there is a legal requirement to offer LGPS to current and new eligible employees. As schools are required to be their own employer will need to be registered with Hampshire Pension Fund 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 Pension Fund are the pension fund administrators in Hampshire and require a schedule of staff who are TUPE transferring from a current Hampshire school to
The Hampshire payroll solution is linked to Hampshire Pension Fund 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 Pension Fund of new starters.
- Notification to Hampshire Pension Fund 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 should 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 Pension Fund and copied to PCSS for the adjustment to National Insurance contribution rate.
You must give a member of staff in the LGPS the option of paying contributions to cover a period of authorised unpaid leave, maternity, paternity or adoption leave. If your employee wishes to make contributions please contact Hampshire Pension Fund to establish the amount of employee and employer contributions that are owed and how payment can be made.
Staff in LGPS who leave the Academy will need to have a leaver form completed (ST8B) and sent to Hampshire Pension Fund.
Hampshire will prepare the LGPS monthly return in preparation for to sign off and submit to Hampshire Pension Fund.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 Hampshire Pension Fund 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 Pension Fund.
16Teachers 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 by to Teachers’ Pensions via STUfor application to the Teacher’s pension record.
The total of employer and employee contributions must be paid to TP by 7th of the month following the deduction. Where the 7th falls on a weekend or bank holiday the contributions must be received by TP on the last working day preceding either the weekend or bank holiday. Hampshire will provide monthly information to you to enable this return.
For an additional charge Hampshire can forward your pension contributions on your behalf, you are still required to use STU to forward a payment slip showing the breakdown of those contributions. You must also inform TP by email at that the local authority is continuing to pay your contributions.
Details on Teachers Pensions and Academy schools is available on the TP website:
For an additional charge Hampshire can assist with completion of the annual TR17A return of service. These returnsare sent at the end of each scheme financial year, 31March. The TRS17A requires a summary of contributions due to the TP, contributions actually paid over during the course of the year and any adjustments made to the contributions. The annual TR17A also asks for total contributable salaries paid for the year. The annual return of service gives details of teachers’ pensionable service gained during the year.
17Applying pay awardsand increments
Subject to authorisation from you to implement pay awards for staff,Payroll Technical will update each employee’s pay,calculating and applying any arrears owing. Also on receipt of appropriate authority Payroll Technical will apply agreed annual increments.
TLRs are normally inflated automatically as part of applying any teachers pay award.
18Year end
Payroll Technical will ensure year end returns to the HMRC.
P60s will be produced from the payroll system for all current employees and despatchedto you for distribution by 31 May each year.
Hampshire will prepare and send to HMRC, on your behalf, employer annual return P35 and P14s .
19HR services
In addition to payroll services Hampshire County Council can offer HR services,at an additional charge, if you purchase a service from Education Personnel Services some of these will be included in this contract.