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Employment Allowance Indicator EPS Issue

Article ID


Article Name

Employment Allowance Indicator EPS Issue

Created Date

17th June 2021




We have recently identified an issue which impacts payroll companies claiming Employment Allowance (EA).
When completing the year-end process, the Employment Allowance (EA) flag has not been selected for inclusion in the EPS. As a result, the HMRC are not being notified of the continued intent to claim EA.
Impacted customers may have received notifications due to underpaid National Insurance contributions.


Update 17th June 2021

This issue has been resolved with the Earnie update v1.36.159. We recommend you install this version as soon as possible.

Once you have updated to this version the next EPS you send for each company will have the correct EA indicator included. This will ensure HMRC are aware the company is claiming employment allowance and will rectify any underpayments recognised due to this issue.

Please Note: You must send an EPS after installing the update to correct the Employment Allowance status with HMRC.

If you are unable or unwilling to install the update, please follow the workaround steps below to resolve this issue:
  1. Go to Company | Alter Company Options | State Aid
  2. Untick the current selection
  3. Choose any different option to what was selected
  4. Click OK
  5. Click back on State Aid
  6. Untick the selection
  7. Select what was originally selected
  8. Click OK

Following this, sending an EPS for this company will include the correct EA indicator for HMRC. HMRC will then activate EA for this PAYE reference. Any underpayment notices relating to this issue should then be cleared automatically.

We must apologise for any inconvenience that this may have caused and assure customers that we are working to ensure this issue is resolved as soon as possible.

Thank you for your feedback.

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