February 2003
We recommend that the accompanying update is installed NOW. In particular, it should be installed before the payroll run for Week 52 is processed.
Content
The accompanying update makes provision for the statutory changes which come into force on the 6th April.
National Insurance
Two new NI table letters are introduced. (Also referred to as NI Code in Employee Records). These are J and L. They are to be used for employees who hold a valid certificate of deferment (CA2700). Previously, such employees were processed under table C, like Pensioners. C continues to be valid but only for pensioners.
J Not Contracted Out (Previously not contracted out C)
L Contracted Out (Previously contracted out C)
Do Not make any changes to employee records, for whom this applies, until immediately after you have processed the year end. At that time, change the NI code letter on page 2 of the Employee Record. There is no former letter at this point so do not use the "Formally Change the Employee’s NI Letter" option.
After 6th April all NI percentage rates will increase by 1%. In addition, and a fundamental change, the employee will pay 1% on all earning above the UEL. This has been catered for in the update. In late March you will receive notification from us of what the computerised NI values need to be set to for the new year.
Statutory Paternity Pay, Statutory Adoption Pay (SPP/SAP)
The provision for making these payments is required after 6th April. We have opted to simply extend the current recording of SMP to cover this. Therefore, like SMP, the calculations have to be done manually outwith the system. You then use the system to record the value being paid each pay day.
2002-2003 P14/P60 End of Year Stationery
The layout has not changed for this year. HOWEVER, the forms have the year printed on them so you must not use last years paper. You must order new paper for this year. Specifically P14 (Continuous-Portrait)(2002-2003)
Further Update
There is a further update required before 5th April 2004. Primarily, this will be to cater for the revised layout of the P14/P60 forms for tax year 2003-2004. Samples will be available to us later this year for testing.
Windows Version of Paydata
This has been undergoing field trials since December. Once we are completely satisfied, and the Pay Year End is past, we will be rolling out this replacement to all users of the standard DOS version of Paydata. Any users wishing to join the field trial should contact us.
DISCLAIMER
FARMdata Limited assume no responsibility or liability for:
Users failure to implement the update for any reason.
The results of any errors occurring during the update, not notified immediately to ourselves.
Users failure to implement previous updates or to incorporate any required NI/PAYE changes, whether notification was received from ourselves or not, and the results thereof.
Users failure to keep adequate numbers of complete backup sets should, for whatever reason at whatever time, it prove necessary to resort to restoring a backup. Any work required on the part of FARMdata to "rescue" data etc, is chargeable under these circumstance.