UK: Isle Of Man Payroll Employee Tax Code Changed On Leaving
Last updated on JANUARY 10, 2017
Applies to:Oracle HRMS (UK) - Version 12.1.1 and later
Information in this document applies to any platform.
On : 12.1.1 version, UK Payroll
An employee on our Isle of Man payroll has had their final tax code changed on leaving due to HCM thinking it is a late payment.
"ITIP: Code changed to HR for leaver being paid late"
The employee in question left on 01.11.2014, and the payroll being processed is for the period 2nd - 8th Nov 2014. So in a sense, the leave date is actually prior to the current payroll period being ran.
For standard UK PAYE employees this only usually happens if the P45 has been issued, it is then classed as a payment after leaving.
Suspect this could be because P45s are not produced by HCM for Isle of Man legislation employees, meaning the trigger to amend the tax code automatically for a payment after leaving for IOM employees is different to standard UK legislation, and simply uses the period date as an indicator for this (if the leave date is before then operate this rule).
Employee left 01.11.2014
Payroll period run for 02.11.2014 to 08.11.2014
Tax code on ITIP Details element: '950F'
Tax code on Run Results used 'HR' (20% emergency week 1 basis)
The tax code not to change
The issue can be reproduced at will with the following steps:
1. Participation Process: Absence
2. Retro-Notifications Report (Enhanced) - PDF
3. Retropay (Enhanced)
4. Payroll Run UK
The issue has the following business impact:
Currently the ITIP (tax) payment for the employee has been manually edited to bring back the correct deduction.
So no massive impact made, just 1 employee who has been dealt with outside of the system calculation.
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