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The overpayment of remuneration to employees can occur for many reasons. The rules governing the right to reclaim overpayments are complex and must bemanagedwith caution. This course clarifies the impact of relevant case law and statutes and identifies the practical considerations for reclaiming overpayments using group discussions and exercises to create an interactive learning environment. Overpayments recovery workshop
the party. Are we allowed to do this? A: Section 13 of the Employment Rights Act 1996 states that a deduction from wages is only lawful if there is either a statutory requirement to make the deduction, a clear clause in the employee’s contract allowing for the deduction, or if the employer obtains the employee’s express written authorisation. This would not be a statutory deduction, so unless it is already clear in the employee contracts that the deduction will be made, you will require additional written permission to deduct. As well as this, regulation 12 of the National Minimum Wage Regulations 2015, states that: “12.— (1) Deductions made by the employer in the pay reference period, or payments due from the worker to the employer in the pay reference period, for the employer’s own use and benefit are treated as reductions” As the money will be used to reduce the employers’ costs, we strongly advise caution if these deductions are made as it may trigger national minimum wage compliance issues. For reference, see: https://bit.ly/3GUzlyv. Q: We have recently had a request from a member of staff requesting for their preferred name to appear on their payslips. Please can you confirm whether preferred names can be used when reporting under real time information (RTI)?
name is shown on payslips but does not reflect in the RTI reports. If your software does not have this capability, then you will have to refer to the employee’s full forename for all internal reporting. Q: Our client wishes to pay December payroll early this year. We struggle with this each year. When must the full payment submission (FPS) be submitted? Is it at the time of payment or on their usual payday? A: Since 2019, there has been a permanent easement for reporting information in real time when employees receive their pay earlier than usual at Christmas. HMRC has provided a reminder of this very issue in the October 2021 issue of the Employer Bulletin . If employers do intend to pay early in December, it is vital that they report their normal contractual payday on the FPS. “Doing this will help to protect your employees’ eligibility for Universal Credit, as reporting the payday as the payment date may affect current and future entitlements.” For reference, see: https:// bit.ly/3GMZNtQ. Q: We have awarded non-cash vouchers to employees as a reward for services. We are aware they must be processed through payroll for class 1 National Insurance contributions (NICs) and reported on form P11D for tax as this is regarded as a benefit in kind. However, we do not understand why class 1NICs are due on the voucher – why not class 1A alone? A: Section 3 (1) of the Social Security Contributions and Benefits Act 1992 (SSCBA 1992) states that earnings for the purpose of NICs are “…any remuneration or profit derived from an employment…” HMRC also states that the definition of earnings for NIC purposes includes “… salaries, wages, and other forms of reward such as bonuses, commission, tips, etc…” As the voucher is presented as a form of reward, it is regarded as earnings derived from employment and, as such, will be liable to class 1 NICs for both employee and employer through the payroll. The voucher must be reported by the employer, for tax only in section C of form P11D or payrolled for tax if an employer has formally agreed to payroll their benefits with HMRC. For reference, see: https://bit.ly/3CGseXA. n
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A: When reporting under RTI, the forename must be their full name,
CPD 3 points
must not be shortened or include any nicknames. Depending on the payroll software, you may have a specific field that can be populated to reflect the employee’s preferred name. The software could be configured so that a preferred
Does an individual’s full name have to be used for RTI purposes?
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| Professional in Payroll, Pensions and Reward |
Issue 76 | December 2021 – January 2022
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