Activating Employment Allowance
Article ID
11627
Article Name
Activating Employment Allowance
Created Date
6th April 2018
Product
IRIS Payroll Professional, Earnie
Problem
How to activate employment allowance
Resolution
To activate employment allowance go to “Company” > “Alter Company Options“
Tick the option for employment allowance here. The “maximum employment allowance” value should be left unchanged unless you are taking over payroll part way through the tax year.
For further details watch the short video below.
PLEASE NOTE: Employment allowance status is reported to HMRC via the EPS. The EPS does not include any values for employment allowance. When you activate employment allowance the next EPS you send will show the status as “Yes”. HMRC do not need to hear anything else about employment allowance until the status changes, as such further EPS submissions (EVEN IF RESENT FOR THE SAME PERIOD) will show the status as “None”. If you then deactivate employment allowance the next EPS will show the status as “No”.
Employment allowance is calculated when you perform month end processing. If you activate employment allowance part way through the tax year you will need to re do the month end processing from the start of the tax year, from April up to the most recent period.
To re do the month end processing got to “Reports” > “Month End Summary” and re print the affect months reports. Always use the option “Based on Tax Calander” for this report.
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