Sage Payroll, Sage HR, Real Time Info

1. PAYE Real Time Time Information?
What is Real Information
RTI is a reform of the PAYE system that will require employers to make
submissions of employee payment and deduction information more
regularly.
When does this come into affect?
• April 2013 – mandatory migration period begins
• October 2013 – mandatory for all employers
HMRC will notify employers 4-6 weeks before they are required to begin
making RTI submissions.
Note: we are awaiting confirmation from HMRC how
they will phase employers in, but suspect this may be by
size of employer

2. PAYE Real Time Information
What does this mean for Employers?
Instead of sending information once a year at Payroll Year End, employers will be
required to provide information to HMRC for PAYE, NIC and Student Loans
every time the employee is paid.

3. PAYE Real Time Information
How are HMRC preparing for RTI?
HMRC are planning to run a number of different phases prior to it being
mandated for all employers:
1. April 2012 to June 2012 - Pilot - HMRC will run a small controlled
pilot to circa 320 employers in the UK.
2. July 2012 to October 2012 – Extended Pilot - HMRC are extending
the pilot to another circa 1300 employers in the UK.
3. November 2012 to March 2013 - Soft Launch - HMRC will migrate
circa 250,000 employers into RTI
4. April 2013 to October 2013 - Mandatory Migration – HMRC will
start to mandate the migration of employers. It is still unknown how
HMRC plan to migrate employers.

4. PAYE Quality Time Information RTI
Real of Data is critical under
Accurate employee and company data is absolutely essential for the
success of RTI to ensure employees pay the right tax and national
insurance contributions.
The information you submit to HMRC about your clients every time you
pay their employees will be matched against records HMRC store on their
National Insurance and PAYE Service (NPS).
If the records you are submitting do not match, you may trigger inaccurate
tax deductions as well as HMRC communication and compliance checks
of the data you store for your client’s employees.

5. PAYE Real Time Information
Data Quality - Simple Do’s and Don’ts
Ensure they have the correct details for their employees; wherever
possible please check the information you need from an official source
such as:
• HMRC and /or Department for Work and Pensions documentation
• Passport documentation
• Birth Certificate
Company Data - under RTI certain information is mandatory
• DO – enter their Accounts Office Reference
• DO – enter their full Company Name and
• DO – enter their full Address
• DO – enter their correct Tax District and Reference Number

6. PAYE Real Time Information
Data Quality - Simple Do’s and Don’ts
Employee Name – FACT - There were over 500 employees called A.N
Other submitted to HMRC
• DO – enter employee’s full forename and surname
• DO – enter a double-barrelled forename or surname in full
• DON’T – abbreviate - if HMRC hold records of ‘Robert’ don’t use
‘Bob’
• DON’T – enter an initial in either the Forename or Surname boxes
Date of Birth - FACT - there were over forty employees over 200 years
of age submitted
• DO – enter the correct date of birth and ensure it’s in the format
DD/MM/YYYY e.g. 05/05/1985
• DON’T – enter a default date of birth such as 01/01/1901 or make one
up

7. PAYE Real Time Information
Data Quality - Simple Do’s and Don’ts
NI Number – FACT - there were 2,000 employees with a National
Insurance Number of AB123456
• DO – only enter an employee’s correct National Insurance Number
• DON’T – make up an employee’s National Insurance Number
Important: For further advice on data quality please visit
http://www.hmrc.gov.uk/rti/dip/data-quality.htm

8. PAYE Real Time Information
The 5 new RTI submission types
1. Employer Alignment Submission – EAS
Employer Alignment Submission (EAS) is a one-off submission that
you’ll perform when you begin making RTI submissions.
HMRC will use this data to match, align and correct the records they hold
in their systems.
Note: You will be required to submit an Employer Alignment Submission
(EAS) prior to starting Real Time Information submissions.

9. PAYE Real Time Information
The 5 new RTI submission types
2. Full Payment Submission – FPS
The main and most common submission type consists of the employee
payments and deductions that will be required each time an employer
makes a payment to an employee.
HMRC will use this submission to calculate how much PAYE and NIC is
due (it contains similar information to what you would normally see on a
P32).
Note: This submission must be made on or before the date the employee
is paid, and must be run after the Update Records process is complete.

10. PAYE Real Time Information
The 5 new RTI submission types
3. Employer Payment Submission – EPS
The submission will include data to enable HMRC to calculate employer
liability that cannot be derived from the Full Payment Submission.
Note: Only required where the employer needs to notify HMRC of
adjustments to their overall PAYE and NIC liability for example where
you are entitled to reclaim statutory sick or maternity pay.

11. PAYE Real Time Information
The 5 new RTI submission types
4. National Insurance Verification - NVR
Allows employers to validate an employee’s National Insurance Number
(NINO) or request one where a new or existing employee does not have
one.
Note: Once the HMRC have processed the NVR submission, you will
receive notifications from HMRC in your Secure Mailbox (this is not an
automated process, it simply speeds up the existing process).
5. Earlier Year Update - EYU
Allows employers to inform HMRC about changes made to a previous tax
year figures.

12. PAYE Real Time Information
What does PYE look like under RTI?
What is no longer required?
• You will no longer be required to make P14 and P35 submissions at
the end of the tax year.
• You will no longer be required to submit P38A returns for casual
employees
What will I continue to do?
• You will continue to provide your employees with P60’s
• You will continue to complete any P11D and P11D(b) for taxable
benefits and expenses
What is new?
You will submit your final Full Payment Submission (FPS) for the year
and then under PYE Routine complete and submit declarations to HMRC.

13. When does RTI impact employers?
• From April 2012 HMRC are running a pilot with volunteer software
developers and employers.
• From April 2013 the mandating of RTI starts with large companies
• From October 2013 all employers will be mandated to use RTI
What is Sage doing?
• We have been working closely with HMRC since the consultation paper for RTI
was published
• We have agreed to be part of the pilot and started to recruit employers for the
pilot from July 2011
• We will be holding a series of Sage user forums across the Sage sites to inform
our customers of the changes, these will be held in conjunction with HMRC
• The HMRC technical specification has been published for us to work from and
we are starting to build prototypes to take out to customers
Sage will provide help and support during this implementation and would
like to reassure our customers that we
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will not pass on the cost of compliance

14. Legislation Changes
PAYE Real Time Information (RTI Pilot)

15. What is Sage 50 HR?
Sage 50 HR is a tool that allows users to record, store and track Human
Resource information for Individuals within an organisation in one central
location.
Sage 50 HR provides a data capture and storage facility for Employment related
data such as Absences and Holidays, Skills & Qualifications and Performance
details that will assist you in managing employees effectively.
That way a company can:
• Ensure detailed employment history details are recorded and stored for each
employee.
• Ensure that individuals have the required training & support to effective
perform their roles.
• Record any Disciplinary Actions or issues that have arisen as well as steps
taken should an employee raise a grievance.
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16. Records Legally Required to Keep
• Pay Rates
• Payroll Information
• Sickness periods of 4 or more days
• Accidents, Injuries or Dangerous Occurrences
Records Strongly Recommended to Keep
• Training & Appraisals
• Employment History
• Absences
• Personal Details
• T&C’s
• Disciplinary Actions
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17. Sage Products
Data Import/Export Data Import/Export
Sage 50 Payroll MS Excel
Sage 50 HR
Complementary
Sage 50 HR Advice Sage 50 Health & Safety Advice
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18. Thank You – Any Questions?

19. Unleashing The Power of Sage
and ACT
Madingley Hall
26th April 2012
Cambridge House, 91 High Street, Longstanton, Cambridge, CB24 3BS
Telephone: +44(0)1954 789978 Fax: +44(0)1954 782878
Email: enquiries@boldfield.com Web: www.boldfield.com