Deductions from Assignment Rate
Employer Deductions
Margin
Margin is appropriate for the periods being paid
Employer NI contributions
Appropriate rate * Earnings for NI
Apprenticeship Levy
Apprenticeship levy rate * Earnings for NI
Employer Pension
Appropriate rate * Earnings for NI
Holiday Pay
Appropriate rate * Gross Pay
Accrued Holiday Pay
Costs are collected and reported
Expenses
reported and broken down
Agency Paid Expenses
Match the figures reported by the agency
Other Deductions
Are fully itemised and explained
Total Deductions
veriPAYE sum is equal to the reported sum
Employee Deductions
Employee NI contributions
Appropriate rate * Earnings for NI
Income Tax (W1M1)
Appropriate rate * Earnings for Tax
Income Tax (cumulative)
Appropriate rate * Earnings for Tax YTD
Employee Pension
Appropriate rate * Earnings for NI
Accrued Holiday Pay
If post tax retention, appropriate rate * Gross Pay or Net Pay
Student Loans
Appropriate rate based on plan * Earnings for NI
Post Grad Loans
Appropriate rate * Earnings for Ni
Other Deductions
Are fully itemised and explained (e.g. attachment orders)
Total Deductions
veriPAYE sum is equal to the reported sum
Holiday Pay
Holiday Pay when advanced
Appropriate rate * Gross Pay
Holiday Pay calculation
At least 12.07% of Gross pay
In fact many umbrellas will use a larger percentage for accrued holiday calculations to ensure employment costs are covered.
Holiday Pay when accrued
Appropriate rate * Gross Pay plus →
- Employment costs are not being deducted from accrued holiday pay
- Employment costs are retained for when the holiday pay is paid out
- Accrued holiday pay costs pot is fully accounted for
Employee Payment
National Minimum Wage
Checks to ensure the appropriate rate is being paid for the weeks invoiced
Gross Pay
Sum of base pay, bonus, holiday pay and other payments checked against veriPAYE calculation engine
Payment Summary
Gross Pay (Advanced Holiday Pay)
Must equal invoice total – employer deductions and checked against veriPAYE calculation engine
Gross Pay (Advanced Holiday Pay)
Must equal Invoice total + Redeemed holiday pay – employer deductions and checked against veriPAYE calculation engine
Payment Breakdown
Gross Pay must equal base pay, bonus, holiday Pay) and is checked against veriPAYE calculation engine
Payment Breakdown
Gross Pay must equal base pay, bonus, holiday Pay) and is checked against veriPAYE calculation engine
Earnings for Tax
Must equal Gross Pay – Employee Pension (if pension being deducted before tax) and is checked against veriPAYE calculation engine
Net Pay
Must equal Gross Pay – Employee Deductions and be at least NMW and is checked against veriPAYE calculation engine
Total Employee Deductions
Must equal (Deductions + Post Tax Employee Deductions) and be at least NMW and is checked against veriPAYE calculation engine
Statutory Sick Pay
SSP
Statutory Sick Pay is being by the umbrella paid at the correct rate
Employer deductions on SSP
Are being paid by the umbrella at the correct rate
Advanced Holiday pay on SSP
Holiday pay based on the average rate of holiday pay in the previous 52 weeks is being paid (not just on the Statutory Sick Payment)
Accrued Holiday pay on SSP
Holiday pay based on the average rate of holiday pay in the previous 52 weeks is being paid is being accrued (not just on the Statutory Sick Payment)
Employer Pensions on SSP
Are being paid by the umbrella
Earnings for Tax
Must equal Gross Pay – Employee Pension (if pension being deducted before tax) and is checked against veriPAYE calculation engine
Net Pay
Must equal Gross Pay – Employee Deductions and be at least NMW and is checked against veriPAYE calculation engine
Total Employee Deductions
Must equal (Deductions + Post Tax Employee Deductions) and be at least NMW and is checked against veriPAYE calculation engine
Statutory Maternity & Paternity Pay (SMP/SPP)
SMP/SPP
SMP/SPP is being paid by the umbrella at the correct rate
Employer deductions on SMP/SPP
Are being paid by the umbrella at the correct rate
Advanced Holiday pay on SMP/SSP
Holiday pay based on the average rate of holiday pay in the previous 52 weeks is being paid (not just on the Statutory Sick Payment)
Accrued Holiday pay on SMP/SPP
Holiday pay based on the average rate of holiday pay in the previous 52 weeks is being paid is being accrued (not just on the Statutory Sick Payment)
Employer Pensions on SMP/SSP
Are being paid by the umbrella
RTI Checks
RTI Payment checks
- Employer NI matches RTI report
- Employee NI matches RTI report
- Income Tax matches RTI report
- Student loans matches RTI report
- Post Grad loans matches RTI report
- Earnings for NI matches RTI report
- Earnings for Tax matches RTI report
- Net pay matches RTI report
- Take home pay matches RTI report
Pension Checks
Pension checks
- Employee Pension payments match the figures in the (Nest) Pension report
- Employee Pension payments match the figures in the (Nest) Pension report
Standing with HMRC
RTI Payment checks
- Figures in each payment record within the RTI are matched against the appropriate payslip report
- Consolidated figures match total figure reported to HMRC
- Amount actually paid to HMRC matches figures reported to HMRC
- Amount actually paid to HMRC is made timeously
- The umbrella’s over all HMRC accounts for PAYE are in good standing
- Earnings for NI matches RTI report
- Earnings for Tax matches RTI report
- Net pay matches RTI report
- Take home pay matches RTI report
Standing with Pension provider
Pension Payment checks
- Figures reported in the Pension report are matched against the figures reported in the Payslip report
- Employee Pension payments match the figures in the (Nest) Pension report
- Employer Pension payments match the figures in the (Nest) Pension report
Agency Intermediary Reporting (where provided to veriPAYE)
Agency Intermediary Reporting (where provided to veriPAYE)
Figures reported in the agency reporting report are matched against invoice figures in the payslips for the period
The Payment Listing
The Payment Details
Payment Intermediaries
Reports are available in your console and by weekly or monthly email
- Figures in each payment record within the RTI are matched against the appropriate payslip report
- Consolidated figures match total figure reported to HMRC
- Amount actually paid to HMRC matches figures reported to HMRC
- Amount actually paid to HMRC is made timeously
- The umbrella’s over all HMRC accounts for PAYE are in good standing
- Earnings for NI matches RTI report
- Earnings for Tax matches RTI report
- Net pay matches RTI report
- Take home pay matches RTI report
Recruiters and End-hirers
Reports are available in your console and by weekly or monthly email
- Figures in each payment record within the RTI are matched against the appropriate payslip report
- Consolidated figures match total figure reported to HMRC
- Amount actually paid to HMRC matches figures reported to HMRC
- Amount actually paid to HMRC is made timeously
- The umbrella’s over all HMRC accounts for PAYE are in good standing
- Earnings for NI matches RTI report
- Earnings for Tax matches RTI report
- Net pay matches RTI report
- Take home pay matches RTI report
Verified payments
Verified Payments
Every element of the payment has been verified by the veriPAYE engine and all is in order
Info and warnings
Info and Warnings
There are some aspects of the payment which we need to let payment intermediaries know about, these are normally simple cross-checks such as the payment being for a new employee we haven't seen before or where no pension has been found - we remind you to check if the worker has opted out of a pension arrangement. The payment is otherwise fine.
Systemic problems
Systemic issues
This is where we see a large number of payments with the same issue, for example the National Insurance rate applied is incorrect - this is often simply a system misconfiguration and we warn both software providers and payment intermediaries about these.
Flagged payments
Flagged Payments
There are one or more elements of the payment which are miscalculated or where data is missing and can't be reconciled. These need attention from you. More often than not these payments can be cleared by the FCSA team when corrections or explanations are accepted.
Suspicious activity
Suspicious Activity
veriPAYE also looks at the overall "big picture" for payment intermediary, and sometimes we'll step in and ask for explanations for anomalies. For example if a a great number workers are receiving untaxed expenses, we'd like to understand why.
Fraudulent activity
Fraudulent Activity
If certain activities just can't be explained by a payment intermediary, we reserve the right to immediately suspend further service and, where necessary report such activities directly to the appropriate authorities, including but not limited to HMRC and Action Fraud.
In certain circumstances we will also issue a public warning about the activity in order to protect workers.