IRIS Payroll April 2022Product Update
April 2022 Update
We are constantly striving to enhance the functionality IRIS Payroll delivers to its users. This product update provides information on new features, enhancements and fixes delivered in April 2022 and the April 2022 patch release.
Complete release notes are available in IRIS Payroll Release Notes
In line with legislation for 2022/2023, we have updated the annual thresholds for student and postgraduate loans. The revised rates are:
- Plan Type 1 is increasing from £19,895 to £20,195
- Plan Type 2 is remaining at £27,295
- Plan Type 4 is increasing from £25,000 to £25,375
- Postgraduate Student Loans is remaining at £21,000
Tax Code Changes
Due to all personal allowances remaining at 2021/2022 levels, there is no increase in tax codes for the 2022/2023 tax year.
Tax, NI and Statutory Payment Rates
System updates include amended tax, NI, and statutory payment rates for the 2022/2023 tax year.
National Minimum / National Living Wage
Updated national minimum and living wage rates for the 2022/2023 tax year are now available in the system.
In line with legislation for 2022/2023, we have updated the AE Parameters.
Publish Pension Communications
Updates to the software include all published pension letters automatically saving in the system, including any generated for a pay period later deleted and recalculated.
NIC Holidays for Veterans NIC Relief
In April 2021, HMRC introduced legislation that allowed employers to claim reduced Employer National Insurance contributions for veterans in their first year of civilian employment after leaving the regular armed forces. From the 2022/2023 tax year onwards, you can process this relief in real-time through RTI.
To allow employers to claim the NI reduction from the 2022/2023 tax year, HMRC has introduced a new NI category letter V and the Veteran’s Secondary Threshold (VUST).
If claiming this relief for veterans from April 2021 to March 2022, HMRC requires you to pay Employer National Insurance contributions as usual and then claim them back retrospectively from April 2022 onwards.
Freeport Employer’s NIC Relief
From April 2022, employees in their first three years of freeport employment will qualify for reduced Employer National Insurance contributions. Following this, HMRC has introduced NI category letters F, I, S and L and the Freeport Upper Secondary Threshold (FUST) for the 2022/2023 tax year onwards.
Employees cannot have worked for their employer in the previous 24 months to qualify for the reduction.
The system now includes the following rates:
- V – (standard category for Veterans)
- F – (standard category for employees working in a Freeport)
- I – (Married women and widows entitled to pay reduced NICs working in a Freeport)
- S – (Employees over state pension age working in a Freeport)
- L – (Employees entitled to deter paying full NI rate working in a Freeport)
Fields added to the Employee | Add New Employee | Tax & NI tab includes:
- New options below Apprenticeship End Date named Working In Freeport and Date of veteran’s first civilian employment
- On the NI rate drop-down, we have added letters, V, F, I, S and L
Note: The Working In Freeport field automatically selects when setting the NI rate to F, I, S or L and cannot be unticked.
On Application | Import/Export | Import Data/Export Data | Fields, below Date of Birth, we have included a Date of veteran’s first civilian employment option and under Worker Status, we have added a Working In Freeport field.
Under Pay | Enter Variations | Preview, below PT to UEL, we have added VUST and FUST labels and values.
On Reports | Employee Reports | Employee Record Card, under NI Number, we have added two additional options, Date of veterans first civilian employment and Working In Freeport.
Updates on the HMRC | Tax/NI/Pension Rates screen includes:
- On the National Insurance Contributions – Earnings Thresholds & Rates table, we have added two new columns:
- Freeport Upper Secondary Threshold (FUST) and
- Veteran’s Upper Secondary Threshold (VUST)
- The Rates & Contributions table now has NI rates V, F, I, S and L
- On the Employer’s Contributions section, we have made the following changes:
- Renamed Earnings above ST up to & including UEL to Earnings above ST up to & including FUST
- Added an Earnings above FUST up to & including UEL/UST/AUST/VUST column
- Added a Balance of earnings above UEL/UST/AUST/VUST column
- Removed columns, Balance of earnings above UEL, Balance of earnings above UST and Balance of earnings above AUST
Useful Online Links
Changes to HMRC | Useful Online Links | Tax & NI Books includes renaming the CA38: NIC Tables A-J option to CA38: NIC Tables and CA41: NIC Tables B&C to CA41: NIC Tables Reduced.
IRIS Payroll Bureau
We have updated the Edit Employee | NI Rate drop-down to include NI rates F, I, L, S and V. To save one of these letters for an employee, you must first amend their existing NI rate in Payroll. To do this, go to Payroll, select the employee, and on the Tax/NI tab, choose the NI Rate dropdown, then select the required letter.
On 7 September 2021, the Government announced plans to introduce a 1.25% Health & Social Care levy. Following this, during the 2022/2023 tax year, National Insurance Contributions (NICs) will increase by 1.25% for working-age employees, the self-employed and employers.
From April 2023, the Health & Social Care levy will be effective and will include the groups listed above and anyone working above State Pension age. National Insurance Contribution rates will return to 2021/2022 levels in April 2023.
For the 2022/2023 tax year, HMRC recommends including the following note on payslips, where possible:
- 25% uplift in NICs funds NHS, health & social care
Following this, on the Pay | Print Payslips, Payslips Options frame, we have added a Remember this indicator. This indicator allows you to repeat a comment added to the Message field on employees’ future payslips. You can amend or remove text displayed on the Message field at any time.
Note: All payslip styles with a Message field feature the Remember this indicator. However, if you use a bespoke payslip, the indicator may not display
Repeat Messages on Payslips
To add and retain a message on payslips, follow the steps below:
- Go to the Pay tab and select Print Payslips
- Add text in the Message field for example, 1.25% uplift in NICs funds NHS, health & social care
- Now select the Remember this indicator then print the payslip as usual
- Your message will appear on the payslip as well as future payslips you select to print
Note: You will need to deselect the Remember this indicator to stop the message displaying
Attachment of Earnings Order
Moving into the 2022/2023 tax year, the Welsh Government has uprated the earning thresholds for Attachment of Earnings Orders (AEOs) to maintain fairness in the system and reflect changes in the cost of living.
Following this, on the Company | Payments and Deductions | Configure Attachments of Earnings Orders | Add New| Type drop-down, under Council Tax, we have added a new Council Tax (Wales) option. Once selected, the Council Tax (Wales) AEO will display on the Configure Attachments of Earnings Orders screen.
We have updated the Employee Details | Pay Elements | AEO screen to include the new Council Tax (Wales) option. You can edit this, if required.
Navigating to the Reports | Print Payslips | Report Preview screen and selecting the To-Dates on Payslip drop-down will display all Council Tax (Wales) deductions. These values will then display on payslips.
Report updates include the addition of the new Council Tax (Wales) AEO and thresholds.
FPS – 2022/2023
In line with government legislation, we have updated the FPS schema for the 2022/2023 tax year.
EPS – 2022/2023
We have amended the EPS schema for submissions relating to the 2022/2023 tax year.
Earlier Year FPS Changes
We have updated the EYFPS schema for the 2021/2022 tax year, allowing you to claim a refund from HMRC for the Employer National Insurance contributions paid in the tax year for qualifying veterans.
To claim a refund, you need to complete an EYFPS. To do this, go to Online Filing | Send Earlier Year FPS, follow the steps shown on each screen, and from the Earlier Year FPS – Tax Year screen, choose the NI Rate drop-down then NI letter V.
A new P60 layout for year-end 2021/2022 is now available.
Termination and Testimonial Payments
The updated termination and testimonial payments for the 2022/2023 tax year are now in the system.
Employment Allowance will increase to £5000 for the 2022/2023 tax year.
If you have completed year-end and moved into the new tax year, the system will automatically increase your Employment Allowance from £4000 to £5000.