Cracking the Jargon with End 2 End Payroll
Whether you are new employer or have been paying your employees for a while the HMRC will often throw you some jargon, usually an acronym or an abbreviation in their literature that makes you think what does that mean?
Without trying, in my opening sentence I have written “HMRC” shortened from Her Majesty’s Revenue & Customs, commonly known as the Inland Revenue, or affectionately as “The” Tax Man. 3 names for the same thing no wonder the world of paying your employees’ is confusing. It would be fair enough to say HMRC might not be the most confusing acronym and most people know what it means, but would you know what was meant by FPS or EAS or even PAYE? Not knowing is one thing but ignoring these could get you in a lot of trouble. The HMRC will fine you, add penalties and surcharges, then add interest for late payment if you don’t comply with their online filing rules.
End 2 End Payroll can take away the worry of cracking the jargon and take care of your payroll for you. We use HMRC accredited software to calculate the gross to net payments and to send the information directly to the HMRC. There would be no need to know that PAYE means Pay As You Earn or FPS means Employer Payment Summary or EAS relates to your Employer Alignment Submission, End 2 End Payroll would take care of all that for you.
If you would like to know more about End 2 End Payroll can offer visit our website End2EndPayroll.com or give us a call on 07789681786.
In the meantime here is some help with cracking jargon:-
|EAS||Employer Alignment Summary||A report you send electronically to HMRC listing all your employees and their details.|
|EPS||Employers Payment Summary||A report you send electronically to the HMRC listing your employees pay and deductions.|
|FPS||Full Payment Submission||The year end report sent electronically to HMRC. This replaces the P35 and P14 forms.|
|NIC’s||National Insurance Contributions||Both the employee and the employer are liable to pay national insurance. The rates are calculated using earnings levels and percentages.|
|NINO||National Insurance Number||Every UK citizen will be issued with a national insurance number when they reach 16 years of age. It is a very important piece of information that helps connect an employee’s pay record with their state pension and any other benefits.|
|NEST||National Employment Savings Trust||An auto enrolment pension scheme for employers of all sizes.|
|PAYE||Pay As You Earn||Tax deducted from employees a pay. Deductions are based on their personnel circumstances and the tax bracket their taxable pay falls into.|
|RTI||Real Time Information||Refers to the current legislation where all employers with more than 10 employees must submit their employee information electronically|
|SSP||Statutory Sick Pay||The sick pay you must pay to your employee based on certain criteria ie length of absence. You can reclaim a percentage of the amount from the HMRC|
|SMP||Statutory Maternity Pay||The maternity pay you must pay to your employee based on certain criteria ie average earnings & the expected due date of the baby. You can reclaim a percentage of the amount from the HMRC|