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 |