UK PAYE and NIC Overview and Set-Up Steps
(Doc ID 742393.1)
Last updated on MAY 09, 2024
Applies to:
Oracle HRMS (UK) - Version 11.5.10.2 and laterInformation in this document applies to any platform.
Purpose
This document is intended to give a basic understanding of PAYE and NIC for UK Payroll set-up, giving Legislative background and up to date rates and thresholds along with Oracle set-up steps.
Scope
This document will help set up of UK PAYE and NIC
It its targeted at End Users of the Application, within the HRMS teams.
Details
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In this Document
| Purpose |
| Scope |
| Details |
| PAYE (Tax) |
| UK Tax Year Calendar |
| Week 53 Payments |
| Employers' responsibility for PAYE |
| What payments does PAYE apply to? |
| Tax codes - the basics |
| What is a tax code? |
| Common tax code letters and what they mean |
| Other tax codes |
| Tax Basis |
| PAYE Bands |
| Example of a Simple Manual Calculation of PAYE (Tax) – 20% band |
| Example of a Manual Calculation of PAYE (Tax) – 40% band |
| PAYE forms and deadlines |
| Start of tax year forms |
| Payroll administration forms |
| PAYE Online filing - options and deadlines |
| National Insurance Contributions (NIC’s) |
| National Insurance Number |
| Class 1 National Insurance contributions |
| Earnings limits |
| Lower Earnings Limit (LEL) |
| Earnings Threshold (ET) |
| Upper Earnings Limit (UEL) |
| Contracted In / Contracted Out |
| National Insurance contribution letters |
| How to work out NICs |
| Gross Pay |
| Contribution category letter |
| Methods of working out NICs |
| Class 1 NIC |
| Using the National Insurance contributions Tables |
| Exact percentage method |
| To work out the employee’s contribution |
| To work out the employer’s contribution |
| Contracted-out occupational pension schemes |
| Employee’s NIC rebate |
| Employer’s NIC rebate |
| Directors National Insurance |
| Oracle System Set Up Requirements |
| Business Group Settings/ System requirements |
| Person level settings |
Multiple Assignment and Aggregated PAYE settings |
| References |