RTI Payroll Up & Running
Over a million employers are now required to commence operating PAYE in Real Time, or what’s more commonly known as Real Time Information (RTI). Here we look at the transition to RTI at Ceridian – the key learnings and some confusion that still prevails in the market…
So far, so good
The HMRC RTI project at Ceridian is now well underway with the implementation of customers who are migrating in April 2013 and have joined the Ceridian RTI Electronic Exchange service.
Over the opening weekend of 6-7 April, Ceridian completed Employer Alignment Submissions (EAS) for around 1,600 organisations, 3,000 PAYE schemes and 1m employees, with over 96% accuracy acceptance rates. There were only a few minor issues that were to be expected with such a major change programme at HMRC.
The RTI Full Payment Submissions (FPS) are also processing well – it is still early in the April month (at the time of writing), but already 500 payrolls have processed so far with FPS success.
David Woodward, Chief Product & Innovation Officer at Ceridian commented:
Our accuracy levels for submissions have been very good so customers who have signed up to our RTI Electronic Exchange service should be relaxed. We have a strong relationship with HMRC, who have been very supportive and we consult with a number of expert payroll bodies on RTI, so our knowledge on developments is excellent.David Woodward, Ceridian
RTI: Key learnings
As with all new implementations there have been minor teething challenges, which are being managed jointly between Ceridian and our direct HMRC contacts – but everything is on target for all implementations in April being successful.
From the work done to date here are some of our experiences. Be assured these are very much in the minority.
The initial challenges
The initial challenges faced with the transition were generally limited to setup issues, opposed to any major and fundamental flaws:
- Employers submitting an incorrect HMRC Accounts Office Reference or mixing with the incorrect tax reference where there are multiple PAYE schemes.
- Employer Contracting Out Numbers (ECON) missing for employers operating National Insurance Contribution letters D, E & L.
- Rejections on the basis that the employer is too early (although they appear for April migration on the HMRC list provided to Ceridian as the agent) – these are being directly progressed with HMRC.
- A very small number of employers who appear to be populating leave dates for employees who have not left – Ceridian are now stripping leave dates from the RTI interchange where the employee has not left.
Confusion still prevalent
A more general area that generated confusion in the industry appeared when it came to In Year P45/P46 Rejection and the late change to The New Starter Process – we’ve detailed these in an additional article to shed some more light.
As RTI enters a bedding in period, the anxiety levels of payroll professionals across the industry still remains high with fears and confusion on elements of RTI relating mainly to:
- The use of the irregular payment marker;
- Confusion on the ‘On or Before’ principle, especially for adhoc payments and shares;
- What is to be declared for hours worked banding.
In general all seems to be working well with RTI, as everyone is starting to get used to it.
We will have to wait and see what new detail HMRC will announce about RTI and what will change for 2014/2015.
Join our customer LinkedIn group Ceridian UK & HMRC RTI to keep up-to-date with the latest discussions and news and put your questions forward to us. Alternatively you can see our RTI Further Resources for more information on the legislation and Ceridian’s RTI Electronic Exchange service.