The Payroll Cycle: IRIS Bureau Payroll & Payroll Business

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The Payroll Cycle: IRIS Bureau Payroll & Payroll Business

1st May 2019

IRIS Payroll Business, IRIS Bureau Payroll

Getting started with Bureau Payroll & Payroll Business; The Payroll Cycle.

Here we will briefly touch on the individual steps that make up a complete payroll cycle. For further details, please read this guide.

We recommend you always think of payroll as a cycle, which consists of steps following steps:

1. Make any required changes at company level
2. Create new employees & edit existing employee details
3. Enter variations
4. Calculate
5. Print summaries & payslips
6. Create BACS file
7. Post journal
8. Issues P45’s
9. Send FPS (Full Payment Submission)
10. Finalise
11. Send EPS (Employer Payment Summary) if necessary
12. Produce pension reports / export files

Company level changes

The first stage in the payroll cycle is to make any required changes at Company level. These may be, for example, new payments or deductions, new rates of pay or overtime factors, changes to bank account details or a new holiday set up.

Create new employees and edit employee details

Next, you might need to add new starters to the payroll. This is also the stage where you need to make changes to existing employees, such as changes to their personal details or to their pay elements.

Enter Variations

Each employee has their standard pay set up in the Pay Elements section of their Employee Details screen. You only need to Enter Variations for those employees whose pay in a period is different from the standard set up.

Calculate

When you have finished entering all of your variations for the current pay period, you need to Calculate the payroll.

Print Summaries and Payslips

The next stage is to print your payroll summaries, ensure your figures are correct and then print your payslips.

Create BACS file

If you pay your employees by BACS you can use the Create BACS File button to view or print a BACS Schedule report and create the output file.

Post Journal

At this stage you would post your journal, if your system is linked to Accounts software.

Issue P45s

If you have any leavers you need to issue P45s now.

Send a Full Payment Submission (FPS)

Each time you pay your employees you need to send a Full Payment Submission to HMRC via the Government Gateway, on or before the pay date.
The FPS contains employee’s pay period and year to date figures, forename, surname, birth date, address, hours worked, details of new starters and leavers, the Payment after leaving indicator and the Irregular Payment indicator.

Finalise

This is the last, essential stage of the payroll cycle. When you are satisfied that the figures for the pay period are correct, you must Finalise before you can begin processing the next pay period.

Send an Employer Payment Summary (EPS)

If there are any changes to the payment HMRC are expecting, you need to send an Employer Payment Summary. For example, you are paying an employee SMP and have reduced the payment to HMRC by the SMP Recovered amount or perhaps because no employees were paid in the current month.
You can send the EPS as part of the Month End Summary process or separately via the Online Filing | Send Employer Payment Summary

Produce pension reports / export files

Finally, If you are using the IRIS AE Suite to manage your auto enrolment pension scheme, produce the reports and export files now.