Currently, overrides and adjustments both, can be created and processed for deductions created in the system.
Overrides & Adjustments can be created for the following:
Pensions (ER & EE)
PAYE Deductions (Tax)
Student Loans & Post Graduate Loans
National Insurance (ER & EE)
In order to create an override or an adjustment for a deduction, users will need to change their Apportion settings under configuration. Currently, the application needs the required apportion setting to be “Disabled”. This can be done by navigating to {Account -> Configuration -> Payroll Setup}
Users will need to “Disable” the relevant apportion setting, they want to create the override or adjustment for. Apportions settings are mapped as
Overrides & Adjustments as the name suggests, will replace the existing deduction value with the user specified one (overrides) or create another deduction with the user specified values whilst also keeping the existing deductions from the payslip (adjustments).
The rates that can be used to create overrides and adjustments are: -
2107 – Pension Adjustment ER or 2106 – Pension Adjustment EE
Creating Adjustments/Overrides
Paye Deductions
Users can create overrides against worker's paye deductions in current period.
To create a PAYE override, follow these steps:
Navigate to Configuration → Payroll Setup
Disable the "Apportion Tax By Work Period"
Navigate to Payroll → Deductions
Click on "Create New"
Select the worker
Select "Paye Deduction" in the Rates
Click on "Add Row"
Add relevant details as required
Click "Save"
Image 1: - Adding Paye Deductions
Student Loans & Post Graduate Loans
To create a Student Loan override, follow these steps:
Navigate to Payroll -> Deductions
Navigate to Configuration → Payroll Setup
Disable the "Apportion Student Loan By Work Period"
Find the period in which "Student Loan" or "Postgraduate Loan was added" for the worker
Edit the "Deduction" by clicking on "Edit" against the deduction in Action
Click on "Add Row" under "Override Transactions"
Add relevant details as required
Click Save
Student and Postgraduate deductions/overrides are always rounded down (as per the law).
Image 2:- Adding Student Loan Override
Users can search for Student and Postgraduate Loans added in previous periods to add overrides for current period deduction.
National Insurance
Users can add both adjustments and overrides for National Insurance (NI) deductions, as required
Adjustments
National Insurance adjustments are only available when an employee's National Insurance letter is updated. E.g. from NI Letter H → Ni Letter A.
No updates to Configuration needed for this process
To create a National Insurance adjustments, follow these steps:
Navigate to Payroll → Deductions
Click on "Create New"
Select the worker
Select "Employee NI" or "Employer NI" in the Rates, as required
Select "Adjustment" under "Ni Adjustment or Override"
Add relevant details as required
Click "Save"
Worker must be paid in current period to trigger a payslip with adjusted National Insurance figures
Image 3:- Adding National Insurance Adjustments
Creating a type of NI Adjustment (Employer or Employee) will automatically create an adjustment for the other type (Employer or Employee).
Overrides
To create a National Insurance override, follow these steps:
Navigate to Configuration → Payroll Setup
Disable the "Apportion NI By Work Period"
Navigate to Payroll → Deductions
Click on "Create New"
Select the worker
Select "Employee NI" to override "Employee National Insurance" or "Employer NI" to override "Employer National Insurance" in the Rates, as required
Select "Override" under "Ni Adjustment or Override"
Click on "Add Row"
Add relevant details as required
Click "Save"
Image 4: -Adding Natioanl insurance Overrides
Pensions
No updates to Configuration needed for this process
To create a Pension adjustments, follow these steps:
Navigate to Payroll → Deductions
Click on "Create New"
Select the required worker
Select "2106 - Pension Adjustment EE" to adjust "Employee Pension" or "2107 - Pension Adjustment ER" to adjust "Employer Pension" under "Rate"
Click on "ADD Row" under "Transactions" to add deduction amounts (where applicable)
Add relevant details, as required
Click "Save"
Users can process backdated deduction by selecting a previous period under "Transactions".
Employee Pension Adjustments are added as a separate line under "Deductions" in the payslip. The Employer Pension Adjustment is combined (Employer Pension deduction for current period and the Employer Pension adjustment amount) and displayed as a single entry in the payslip.
Image 5: - Adding Pension Adjustments
Alternatively, Payroll Managers can also "Pension Adjustments" from the employee record using following steps:
Navigate to Workforce → Workers
Edit an existing worker by click on "Edit" next to the worker under "Action"
Click on "Pension Adjustment" under "pension Auto-Enrolment" in the "Payroll Tab"
Add relevant details as required
Click "Save"
This process will create required pension deductions against the worker under "Payroll → Deductions" in current period as required.
image 6:- Adding Pension Adjustment via Employee Record
The Employee must be enrolled in a Pension Scheme
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