1) What is a One-Off Payment?
One-Off Payments is not a pay frequency. It is just an indicator indicating that the employee concerned is being paid a one-off payment in a particular FPS return.
The One-Off Payment is usually paid because of retirement, redundancy and lump sums. Different types of one-off payments to employees leaving your business are treated differently for PAYE tax and NICs due. Some types of leaving payment are tax-free, some taxable in full, and some taxable only above £30,000. Most One-Off redundancy payments are tax-free up to £30,000 and not liable for NICs.
For NICs purposes, one-off leaving payments are either wholly liable to NICs or not liable at all. Unpaid salary and holiday pay are treated as earnings for the purposes of tax and NICs.
For more information click on the HMRC links
https://www.gov.uk/what-to-do-when-an-employee-dies/paying-employee-died,
http://www.hmrc.gov.uk/payerti/employee/employee-leaves.htm
2) Who is qualified for One-Off Payment?
The One-Off Payment is entitled for Employees' who are leaving or retiring and for Pensioners who like to receive one-off lump sum pension payment. The different types of One-Off Payment in the application having qualifying conditions are mentioned below,
Types of Employee entitled to a One-Off Payment
Unused Holiday Payment: If an employee has unused holidays from the holidays annually entitled then while leaving the employment the employee is qualified to receive the Unused Holiday payment.
For more information click on the HMRC Link https://www.gov.uk/holiday-entitlement-rights
Taxable/Non-Taxable Redundancy Pay: An employee is qualified for Taxable/Non-Taxable Redundancy Pay under the following conditions,
- The Employee loses the Job as the employer wants to reduce his or her workforce or the Job disappears.
- The Employee is entitled for tax exemption till �30,000 limit. If exceeds the limit then the excess is taxed. (i.e. out of a �45,000 payment, only �15,000 is taxed).
Types of Pensioners entitled to a One-Off Payment
Trivial commutation lump sums (TCLS): A pensioner is qualified for Trivial commutation lump sums (TCLS) under the following conditions,
Small pot lump sum payments: If your pension pot is small you may prefer to take it all as a lump sum rather than using it to get a pension, if your pension scheme rules allow this. You must be at least 55 years of age to take your pension pot as a lump sum. You may qualify to take all of your pension pot as a lump sum if:
- One of your pension pots is worth �2,000 or less for a company or public sector scheme.
- Your total pension pots under all the schemes you belong to are worth �18,000 or less.
Further there are two types of Small pot lump sum payments in the application having the same Qualifying Condition.
1. Small pot lump sum payments from personal pension schemes
2. Small pot lump sum payments from occupational pension schemes
For more information click here http://www.hmrc.gov.uk/pensionschemes/small-pen.htm
3) How to make a One-Off Payment in the application?
You can make a One-Off Payment in the application by following the Road Map for different One-Off Payments Items mentioned below,
Road Map – To Process the Unused Holiday Payment
Step 1: Go to the Employee Menu in the tasking Zone and Select the Submenu Leaver ( P45 ) Administration.
Step 2: Click on the Process Leaver P45 link horizontal to the Employee for whom One-Off Payment Items needs to be processed.
Step 3: Enter the date of leaving, click on the Continue button and select "Option 1: The final payrun for Employee is NOT complete".
Step 4: Now Click on the Continue button, enter the Number of days and amount for Unused Holiday Payment.
Step 5: Click on the Process Pay button to process the pay and later Click on the confirm button.
Step 6: Now you need to E-File the FPS following the procedures from "Road Map for E-filing FPS to HMRC".
Employee -> Leaver ( P45 ) Administration -> Select Leaver -> Process Leaver P45 -> Continue button -> Select Option 1 -> Continue button -> Enter the Number of days and amount for Unused Holiday Payment -> Process Pay button -> Confirm button -> Done button
('Employee' is the button positioned in the tasking zone menu at the top. It is the second button from the left)
Road Map – To Process the Taxable/Non-Taxable Redundancy Pay
Step 1: Go to the Employee Menu in the tasking Zone and Select the Submenu Leaver ( P45 ) Administration.
Step 2: Click on the Process Leaver P45 link horizontal to the Employee for whom One-Off Payment Items needs to be processed.
Step 3: Enter the date of leaving, click on the Continue button and select "Option 1: The final payrun for Employee is NOT complete".
Step 4: Now Click on the Continue button, enter the Taxable/Non-Taxable Redundancy Pay amount in the appropriate Column.
Step 5: Click on the Process Pay button to process the pay and later Click on the confirm button.
Step 6: Now you need to E-File the FPS following the procedures from "Road Map for E-filing FPS to HMRC".
Employee -> Leaver ( P45 ) Administration -> Select Leaver -> Process Leaver P45 -> Continue button -> Select Option 1 -> Continue button -> Enter the Taxable/Non-Taxable Redundancy Pay amount in the appropriate Column -> Process Pay button -> Confirm button -> Done button
('Employee' is the button positioned in the tasking zone menu at the top. It is the second button from the left)
Road Map – To Process the Trivial commutation lump sums (TCLS) (If you've already made standard payments from the pension before making the trivial commutation or lump sum payment)
Step 1: Go to the Employee Menu in the tasking Zone and Select the Submenu Leaver ( P45 ) Administration.
Step 2: Click on the Process Leaver P45 link horizontal to the Pensioner for whom One-Off Payment Items needs to be processed.
Step 3: Enter the date of payment as the date of leaving, click on the Continue button and select "Option 1: The final payrun for Employee is NOT complete".
Step 4: Now Click on the Continue button, enter the Trivial commutation lump sums (TCLS) amount in the appropriate Column.
Step 5: Click on the Process Pay button to process the pay and later Click on the confirm button.
Step 6: Now you need to E-File the FPS following the procedures from "Road Map for E-filing FPS to HMRC".
Employee -> Leaver ( P45 ) Administration -> Select Leaver -> Process Leaver P45 -> Continue button -> Select Option 1 -> Continue button -> Enter the Trivial commutation lump sums (TCLS) amount in the appropriate Column -> Process Pay button -> Confirm button -> Done button
('Employee' is the button positioned in the tasking zone menu at the top. It is the second button from the left)
Road Map – To Process the Trivial commutation lump sums (TCLS) (If the trivial commutation or other lump sum payment is the first and only payment from the pension)
Step 1: Go to the Employee Menu in the tasking Zone and Select the Submenu Add New Employee.
Step 2: Enter the Required details and select the Employee / Pensioner Type as pensioner.
Step 3: Further enter the Pension Start Date, annual Pension amount and Click on continue button.
Step 4: Now choose the appropriate option, click on continue button, enter the Tax Code as basic rate (BR) code and Week1 / Month1 Indicator to week 1/month 1 basis.
Step 5: Click on continue button and later on finish button.
Step 6: Go to the Employee Menu in the tasking Zone and Select the Submenu Leaver ( P45 ) Administration.
Step 7: Click on the Process Leaver P45 link horizontal to the Pensioner for whom One-Off Payment Items needs to be processed.
Step 8: Enter the date of leaving, click on the Continue button and select "Option 1: The final payrun for Employee is NOT complete".
Step 9: Now Click on the Continue button, enter the enter the Trivial commutation lump sums (TCLS) amount in the appropriate Column.
Step 10: Click on the Process Pay button to process the pay and later Click on the confirm button.
Step 11: Now you need to E-File the FPS following the procedures from "Road Map for E-filing FPS to HMRC".
Employee -> Add New Employee -> select the Employee / Pensioner Type as pensioner -> Continue button -> Choose the appropriate option -> Continue button -> Enter the Tax Code as basic rate (BR) code and Week1 / Month1 Indicator to week 1/month 1 basis -> Continue button -> Finish button -> Employee -> Leaver ( P45 ) Administration -> Select Leaver -> Process Leaver P45 -> Continue button -> Select Option 1 -> Continue button -> Enter the Trivial commutation lump sums (TCLS) amount in the appropriate Column -> Process Pay button -> Confirm button -> Done button
('Employee' is the button positioned in the tasking zone menu at the top. It is the second button from the left)
Road Map – To Process the Small pot lump sum payments from personal pension schemes or Small pot lump sum payments from occupational pension schemes
Step 1: Go to the Employee Menu in the tasking Zone and Select the Submenu Leaver ( P45 ) Administration.
Step 2: Click on the Process Leaver P45 link horizontal to the Pensioner for whom One-Off Payment Items needs to be processed.
Step 3: Enter the date of leaving, click on the Continue button and select "Option 1: The final payrun for Employee is NOT complete"
Step 4: Now Click on the Continue button, enter the Small pot lump sum payments amount in the appropriate Column depending on your scheme.
Step 5: Click on the Process Pay button to process the pay and later Click on the confirm button.
Step 6: Now you need to E-File the FPS following the procedures from "Road Map for E-filing FPS to HMRC".
Employee -> Leaver ( P45 ) Administration -> Select Leaver -> Process Leaver P45 -> Continue button -> Select Option 1 -> Continue button -> Enter the Taxable/Non-Taxable Redundancy Pay amount in the appropriate Column -> Process Pay button -> Confirm button -> Done button
('Employee' is the button positioned in the tasking zone menu at the top. It is the second button from the left)
4) How to report a One-Off Payment to HMRC (FPS E-Filing)?
You can make One-Off Payment E-Return (E-File) to HMRC by following the Procedures from the Road Map mentioned below.
Road Map – E-filing FPS to HMRC
Step 1: Go to the E-Filing EOY/RTI Menu in the tasking Zone and Select the Submenu "E-file RTI EAS, FPS, EPS, NVR".
Step 2: Click on the FPS (Full Payment Submission) link.
Step 3: Select Pay Frequency and Pay Period and Proceed with the process.
Step 4: Further you can click on the "Live E-Filing" button and E-File the FPS.
E-Filing EOY/RTI -> E-file RTI EAS, FPS, EPS, NVR -> FPS (Full Payment Submission) link -> Continue button -> Confirm button -> Live E-Filing button
(' E-Filing EOY/RTI ' is the button positioned in the tasking zone menu at the top. It is the third button from the left) |