What is an EPS - RTI FAQs

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What is an EPS - RTI FAQs

1st April 2019

IRIS Payroll Business, IRIS Bureau Payroll

What is the EPS (Employer Payment Summary)?

Check out our RTI FAQs for further help

Or  Read the Payroll Business RTI Guide Here

Or  Read the Bureau Payroll RTI Guide Here

The EPS is used to report the following to HMRC:

• Recovery / Compensation amounts for statutory payment (SMP, OSPP, SAP, etc.)
• CIS deductions suffered.
• If no employees have been paid at all within a whole tax month.
• If no employees are going to be paid in future months.
• Inform HMRC that you are claiming employment allowance (or ceasing to claim)
• If you have to pay the Apprenticeship Levy

If none of the above conditions apply you do not need to send an EPS.

NOTE: Once the company has an apprenticeship levy charge in the tax year you must then send an EPS for each subsequent month, even if the apprenticeship levy charge drops back to zero.

If you do need to send an EPS remember, this is sent on a monthly basis regardless if you pay weekly, 2 weekly, 4 weekly or monthly.

How to send an EPS

You need to make sure you have finalised the last pay period that completes the tax month.

Go to “Online filing” > “Send Employer Payment Summary“

Work through the wizard and complete the values to send to the HMRC. These should be same as shown on the month end summary report.

When to send an EPS?

The EPS should be sent, if required, after you have finalised the last pay period for the tax month. Remember the HMRC tax calendar runs from the 6th to the 5th of the following month.

The HMRC expect to receive this by 19th of the following month.

Do I have to carry out Month-End Processing prior to submitting an EPS?

Yes, month-end processing calculates any reclaim, recovery or compensation values for the month. This is also required for Employment Allowance figures to accumulate correctly.

How to correct a current month EPS:

There is no restriction from the system / HMRC in resending an EPS, simply repeat the processes and correct the values before you resend.

How to correct a previous month EPS

The EPS reports to the HMRC the running YTD values for recovery/compensation. If you find a previous months submission was incorrect, adjust your monthly values on your next submission to make sure the correct YTD values are shown on the final confirmation screen

Employment Allowance and the EPS

If you are claiming Employment Allowance you will need to send at least one EPS to inform the HMRC to expect reduced payments

Make sure you have activated employment allowance before performing month end processing.

Send the EPS after finalising the last period of the tax month.

Note: The system may warn that you are sending zero values if there are no other recovery amounts to report, proceed with the submission to activate employment allowance with the HMRC.

You do not need to send further EPS submissions for employment allowance

Correcting an EPS for the previous tax year

Unlike the FPS the HMRC will still accept EPS submissions for the previous year

Go to “Year-end“> “Use last year’s data” to load the previous tax year

Send the EPS as normal, correcting the affected values, making sure the on the final confirmation screeen the YTD totals are correct for the tax year.

Check out our RTI FAQs for further help

Or  Read the Payroll Business RTI Guide Here