KashFlow Payroll

FAQs

General

What is KashFlow Payroll and who is it for?

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KashFlow Payroll is online payroll software for the UK that helps businesses quickly and simply manage their payrolls and comply with HMRC requirements. KashFlow Payroll is intended for small to medium business - from 1 to 250 employees - and for bureaus or accountants who manage the payroll of more than one small to medium company.

What is "the cloud"?

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Cloud computing is the use of computing resources (hardware and software) that are delivered as a service over a network (typically the Internet). The name comes from the use of a cloud-shaped symbol often used to represent the complex infrastructure it contains. Cloud computing entrusts remote services with a user's data, software and computation.

How secure is KashFlow Payroll? Is my data safe?

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All communication between our servers and your computer is encrypted using a technology called Secure Sockets Layer (SSL), the same technology that banks use to protect data.

Sensitive data, such as your password, company banking information, employee bank details, etc. is stored in a 1024-bit encrypted state.

Our servers are located in the largest cloud datacentre in Europe, alongside some of the biggest websites and web systems in the world. We maintain rolling, redundant backups of all data on our servers. Full data backups are transferred off-site each night.

Product Usage

Does KashFlow Payroll handle all my RTI submission requirements?

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Yes. From 6 April 2013, employers must report their payroll information to HMRC in real time, on every pay date. KashFlow Payroll transparently and automatically sends your FPS whenever you lock a pay date and pay employees. This process is seamlessly integrated into the system and you are notified of success or failure for each submission. In addition, KashFlow Payroll automatically generates and sends EPS submissions for you each tax month, where required, to notify HMRC of:

  • Statutory payments
  • No payment in a Tax Month
  • Final declarations at year end

How much RTI knowledge do I need?

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None, because KashFlow Payroll will make all RTI submissions automatically for you.  If your payroll is such that some special RTI action or data is required, KashFlow Payroll will intelligently prompt you to take the appropriate action.  For example, if you stop paying a current employee KashFlow Payroll will prompt you to either set them as a leaver or tick the ‘Irregular Payments’ box so that HMRC know how to handle the employee under RTI.

Does KashFlow Payroll record payments I need to make to HMRC?

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To assist you in making the correct payments to HMRC, KashFlow Payroll shows you the amount of Tax, NICs and student load liability due for each pay period that you have processed. You can then record when you have made the payment. In addition, KashFlow Payroll offers you the ability to enter receipts from HMRC, such as statutory payments recovered.

How difficult is it to set up an employee mid-year?

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You need to have the correct data available, however KashFlow Payroll can handle opening balances in all areas of employee setup - taxs, nics, sick pay, other statutory opening balances, attachment of earnings opening balances. Because of this, while there may be a little extra data entry to set up an employee correctly mid-year, KashFlow Payroll caters completely for this scenario.

Can KashFlow Payroll handle NICs requirements for directors?

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Yes. KashFlow Payroll allows you to appoint and remove any current employee as a director. You then have the option to specify the appropriate NICs calculation method (normally on an annual basis).

What statutory payments can I make through KashFlow Payroll?

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KashFlow Payroll handles all types of statutory pay. Sick pay and KIT days can be entered with an easy calendar interface and related payroll calculations will happen automatically in the background. The following statutory payments are also available:

  • Statutory Maternity Pay
  • Statutory Adoption Pay
  • Ordinary Statutory Paternity Pay (Birth)
  • Ordinary Statutory Paternity Pay (Adoption)
  • Additional Paternity Pay (Birth)
  • Additional Paternity Pay (Adoption)

Does KashFlow Payroll have pensions support?

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Not yet. We're working hard to have pension schemes available for our users shortly.

Is it possible to do attachments of earnings in KashFlow Payroll?

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KashFlow Payroll supports most UK and Scottish attachment of earnings (or "arrestment") orders. Deductions based on any attachments of earnings you enter for an employee are automatically calculated and entered on their payslip.

Do I need to manage NICs tables and tax rates?

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No. You'll never again need to setup or upgrade your software from year to year in order to stay up-to-date with current HMRC requirements or to adjust rates and bands. As soon as this information is published, we enter it into the KashFlow Payroll background system and it immediately becomes available to you.

For your information, the Tax rates and bands from 6 April 2013 are:

  • Basic Rate 20% - £1 to £32,010
  • Higher Rate 40% - £32,011 to £150,000
  • Additional Rate 45% - £150,001 and above

The basic Personal Allowance will be £9,440. The threshold (starting point) for PAYE is £182.00 per week (£787.00 per month). The Emergency Tax Code is 944L.

Where are my employer and employee rates?

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KashFlow Payroll operates a little differently than many payroll products in that it calculates rates for you automatically as you create payslips for employees. This means that you don't actually need to setup employer or employee rates prior to creating payslips. The system is intelligent about the types of items you enter, for example, if you add a £3,000 monthly salary on a payslip, the employee rates and annual earnings are deduced from this figure. Subsequent changes to the salary for that employee on a payslip will result in a prompt for you to confirm whether you wish to update the calculated rate. You can, of course, manually set rates for employees by hour, day, month and year if you wish.

Which pay frequencies or pay cycles does KashFlow Payroll support?

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Currently, KashFlow Payroll caters for weekly and monthly pay frequencies. We are working on introducing 2-weekly and 4-weekly pay cycles, along with supplementary (or 'offcycle') payments in the near future.

Can I schedule future payments?

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The KashFlow Payroll payslip is designed to save you as much time as possible in preparing your payroll each month. You can specify items as repeating so that they appear on each future payslip (until a specified end period), or, you can create payslip items in any future period.

Can I re-open a finalised pay period?

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Not directly. Once you lock a pay period, it is no longer possible to edit the related payslips directly. However, we do offer a rollback facility to undo an entire pay period. Normally we recommend that you enter correcting allowances or deductions on your payslips to remedy errors with previously finalised periods.

How can I setup my own Payslip Items?

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KashFlow Payroll provides a comprehensive list of Payslip Items with all the correct settings for tax, NI, Average Weekly Earnings, Attachable Earnings, any HMRC Net Pay Arrangements, part of minimum wage and so on.  If you want something different then you can often find a Payslip Item called ‘Other’ that you can rename to suit your needs.  Make sure to use these other Payslip Items under the right area so that the correct settings are applied.

What method does KashFlow Payroll use to calculate Tax and NICs?

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KashFlow Payroll, like most computerised systems, uses the ‘Exact Percentage Method’.  Our Tax and NI figures may be different to any manual figures that are based on the HMRC tables, but this is normal and completely acceptable.  KashFlow Payroll has gained HMRC Accreditation and HMRC Recognition for hundreds of payroll calculations so you can rest assured our figures are correct.

What method does KashFlow Payroll use to calculate Statutory Pay?

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KashFlow Payroll calculates whole weeks of Statutory Maternity, Paternity and Adoption Pay.  So if you pay monthly then some months will include four weeks of Statutory Pay and some months five.

Do I need to do anything at the end of a Tax Month?

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No, KashFlow Payroll automatically knows when you have finished with the Tax Month and files the appropriate RTI submissions to HMRC.  You can then see you how much you owe HMRC and track any payments you make to HMRC together with any receipts from HMRC.

Do I need to do anything at the end of a Tax Year?

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No, KashFlow Payroll automatically knows when you have finished with the year and files the appropriate RTI submissions to HMRC.  KashFlow Payroll may ask you to fill out some Questions and Declarations, similar to those from the old P35 forms, but you will be told when this is required.

Can I pay employees automatically?

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KashFlow Payroll supports a wide range of BACS file formats that you can download and feed in to your banking software.  If you cannot find the right format for your bank, please let us know.

RTI Specific

When you file on behalf of an employer do you have to be registered as their agent?

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No.  You only need to be registered as an Agent to get data from their PAYE Account. We have been successfully submitting returns as the KashFlow Payroll Agent.

Does the HMRC email confirming receipt of FPS/EPS go back to the customer or back to KashFlow Payroll?

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The email comes to our designated RTI email address at KashFlow Payroll.

However, if there is a problem with the PAYE Scheme itself then HMRC may use the contact details included in the RTI Submission.  If you have selected 'online filing by KashFlow Payroll' when setting up a company then the email comes to us.

If you selected 'Use own credentials' when setting up a company, then HMRC should respond to the email address specified for the contact, unless you left this field blank (it's optional), in which case no email would be sent.

We actually have a monitoring tool that lets us know if any RTI submissions fail.  This allows us to fix problems quickly for users.

Can I send an EPS for no payment this period or future intention of no payment?

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Yes you can send an EPS for no payment this period, but not for future periods. KashFlow Payroll handles both these submissions automatically as follows:

Month 1: Pay someone, Finalise Period - KashFlow Payroll sends an FPS and if there is any Compensation/Recovery an EPS.

Month 2: Do not pay anyone, Finalise Period - KashFlow Payroll sends a NIL EPS automatically.

Month 3: Do not pay anyone, Finalise Period - IRIS OpenPayroll sends a NIL EPS automatically.

etc...

This is the safest way to do things.  The only downside is, if you do not login in Month 3 and thus do not press Finalise Period then a NIL EPS does not get filed.  

KashFlow Payroll sends the EPS at the right time (ie after the 18th) so the user could queue up a number of NIL EPS's by finalising a batch of Periods at one time.

Why has an EPS not been submitted?

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An EPS is only created if you

  • Have made no payments in a Tax Month, or,
  • Have made Statutory Payments and are entitled to Recovery and Compensation as a Small Employer

An EPS is only actually submitted after the end of the Tax Month it relates to (but before the deadline of the 19th).

Why does an EPS have status of “Pending”?

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KashFlow Payroll only submits an EPS for a particular Tax Month between the 6th and 19th of the following calendar month so before then the EPS is waiting to be submitted and will have a status of “Pending”.  This date range is the most reliable time to submit an EPS because:

  • A NIL EPS (meaning no payments were made in the Tax Month) must be submitted after the empty Tax Month.  Since a Tax Month ends on the 5th a NIL EPS must be submitted after the 6th.
  • An EPS must be submitted before 19th otherwise HMRC will treat it as relating to the next Tax Month.
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