Keytime Payroll Year End April 2020
Payroll Year End
Please read these instructions before attempting year end.
You can get help with your year end in one of three ways:
Online at support.keytime.co.uk
Email us at email@example.com
Call us on 0344 815 5560
Personal allowances are unchanged this year, no amendments to tax
codes are required.
Changes for 2020-21
From 6th April 2020, only businesses with a class 1 NIC bill below £100,000 in the prior year will be allowed to claim. There are further restrictions on the type of employer:
- Director only payrolls, where the director is paid above the Secondary Threshold
- Payrolls for the purpose of employing someone for personal, household or domestic work (like a nanny or gardener) - unless they’re a care or support worker
- A public body or business where more than half the work is done in the public sector (such as local councils and NHS services) - unless the entity is a charity
- Service companies working under ‘IR35 rules’ where the only income is the earnings of the intermediary
The allowance itself increases to £4000 p/a, and when running year end on a payroll, where employment allowance is being claimed, an additional message screen will appear explaining the changes. You will then be prompted to confirm that the business is still eligible by way of enable / disable buttons.
Car Benefit Calculation
The car benefit calculation is changing from 6th April; therefore, the car benefit screen has been updated to take account of these changes.
From 6 April 2020, the graduated table of company car tax bands includes 11 new bands in respect of ultra-low emission vehicles (ULEVs) in the 0-75g CO2/km category. A second table of company car tax rates has been added, with a set of appropriate percentages in respect of vehicles registered on or after 6th April 2020 and tested under the Worldwide Light Testing Procedure (WLTP).
Statutory Parental Bereavement Leave
A feature to support the payment of statutory parental bereavement leave has been added.
From April 2020, bereaved parents are entitled to at least two weeks’ leave following the death of a child under the age of 18 or if they suffer a stillbirth from 24 weeks of pregnancy. The leave must be taken within 56 weeks and whereas statutory sick pay has qualifying days, these do not apply to statutory parental bereavement leave.
- 26 weeks continuous service required
- Rate is the same as statutory paternity and shared parental pay £151.20 per week
- Leave can be taken in one block or in two separate blocks of one week
- Leave must be taken within a 56-week window following the child’s death – this allows the parent to take statutory leave for things such as anniversaries. Notice requirements will be flexible in order that leave can be taken without prior notice
- A copy of the death certificate is not required by employers as evidence
Changes to SSP and other recent initiatives in response to COVID-19 (Coronavirus)
The Government has made a number of announcements recently in an attempt to support businesses with the retention of staff. These include paying 80% of staff salaries and the abolition of SSP waiting days, allowing SSP to be paid from day one.
For more information on recent initiatives click here
Further details on SSP changes including instructions on how to override the waiting days can be found here
Employer NIC on Termination Payments
A new ‘Termination’ pay element has been added to allow for the calculation of tax and class 1A NIC on payments over £30,000
Earlier Years Update
Earlier years update functionality was due to be phased out in 2019/2020 but is to continue as a means to correct payroll data in the 2019/2020 tax year.
Student Loan thresholds
If you have ticked the box for a Student Loan, the annual earnings above which collection will start are as follows:
Threshold for Plan 1 £19,390
Threshold for Plan 2 £26,575
Threshold for postgraduate loans £21,000
Install the update
The year-end update installs two versions of the software onto your PC.
Keytime Payroll 19 (for 2019-2020 and year-end processing)
Keytime Payroll (for processing 2020-2021 payrolls)
Step by step installation instructions:
- Ensure that no Keytime programs are running – if they are, close them
- Click here to download the update
- Follow the on-screen prompts and allow the update to install
- The system will tell you when it has finished
It is imperative that you take regular backups throughout the payroll year. As well, you must take a separate pre-year end backup and store it separately from your usual backups. It helps to label this as a year-end backup.
You should complete every period for 2019/2020 payroll before processing the year end. Payroll will not allow you to process year end whilst a pay period is open.
A week 53 payment will only be required in 2019-2020 if the actual day on which you pay your staff is Saturday 4th or Sunday 5th April.
If your payment date is correctly set in the system at Saturday or Sunday week 53 will run automatically.
In line with legislation, Keytime Payroll calculates the extra period on a week 1/month 1 basis. Please bear in mind that this could cause staff to be underpaid for the year ended 5th April 2020.
Filing a Final FPS or EPS
The final FPS must be filed on or before the date you pay employees.
If you have statutory payments to recover, or you need to tell HMRC that you haven’t paid anyone in the final tax month, you must file an EPS. Under these circumstances the EPS must be filed by 19th April 2020 to ensure HMRC allocate recovery amounts to the correct period and tax year.
Open your 2019-2020 payroll, to submit a final FPS click submit on the main toolbar in the employee library, then click Full Payment Submission.
Select the relevant FPS and click Submit. In the FPS wizard, tick (click) the box ‘final submission for the year’ and click next.
Once the pre-filing validations have been completed, click Submit to send the FPS; you can send the final FPSs as many times as necessary.
If you need to send an EPS, for example to recover statutory payments, you can send a final EPS instead of a final FPS (you must still send an FPS for the last period). Click submit on the main toolbar in the employee library, then click Employer Payment Submission.
Select the relevant EPS and click submit. In the EPS wizard, tick (click) the box ‘final submission for the year’. Continue with the EPS as normal. It is important to note that if you are recovering statutory payments you must submit the EPS by 19th April 2020 to avoid HMRC allocating the recovery amount to the incorrect tax period and year.
Run the year end
- Install the Payroll Year End update if you haven’t already done so
- Complete any outstanding processing for 2019-2020 and close the last period as usual – you must ensure you have a backup before closing the final period. If you normally use an icon on your desktop to start the payroll software, use the new Keytime Payroll icon instead
- Take a backup of your data and label it as your Year End backup. Keep it safely away from your regular backup set
- Using the Keytime Payroll 2019-2020 icon go back into your 2019-2020 payroll and print off your P60s. To do this, make sure you are in the Employees screen (the employees button in the top-left hand corner will be disabled). Reports > Year end > P60s
- Print the reports you need before year end. It is possible to print P60s after closing down the year. To do this simply log into the 2019-2020 payroll using the Payroll 2019-2020 icon
You can now run the year end. This will create your data in the 2020/2021 version of the software.
In the 2019/2020 version of Payroll click Payroll > End of year > Process end of year
- Close Payroll 2019/2020 and re-open it using the other icon, which will be labelled simply Keytime Payroll. The tax year (bottom right) should now read 2019/20 and the pay periods will have reset to 1.
P60 print alignment
All the boxes on the P60 are in fixed positions which should be correct for all printers.
Please note that the system uses Portrait Laser P60 single sheet forms only.
Occasionally, you may need to adjust the prints to fit the forms. You can manoeuvre the entire print horizontally and/or vertically to ensure that it prints within the boxes on the form.
From Setup > Configure system, click the settings tab. You can then adjust the margins to align the P60s.
If you do make a change, we recommend making a note of the original settings, in case your payslip alignment is affected. You only need to make this change in a single company - other companies will use the same settings.