Payroll compliance – what is Full Payment Submission?
Running payroll involves several important duties, yet reporting sits at the heart of them. So, when it comes to payroll compliance, what is Full Payment Submission? Essentially, a Full Payment Submission (FPS) is a payroll report for HMRC. Moreover, employers must send it every time they pay their staff.
What an FPS reports
Firstly, employers create an FPS using their payroll software. Then, they use it to keep HMRC fully informed. Specifically, the report covers three key areas:
- Payments made to employees
- Deductions taken from pay
- National Insurance information
Consequently, HMRC always holds an up-to-date record of your payroll obligations.
Who to include and when
Importantly, you must include everyone you pay. Indeed, this applies even if someone earns less than £96 weekly. Furthermore, you must send the FPS on or before payday. This rule stands whether you pay HMRC monthly or quarterly.
However, always enter the usual payday when reporting. For example, you might pay staff early because of a Bank Holiday. Nevertheless, you should still record the normal payday.
Sending your FPS early
Sometimes, you may need to report before the regular payday. For instance, your payroll staff might take holiday. However, avoid reporting too early. Otherwise, changes may force you to send a corrected FPS. Notably, an employee might leave, or a tax code might change. Additionally, you cannot send new tax year reports before March.
Essential information to include
Your FPS must contain several key details, so check them carefully. Specifically, include:
- Employer details
- Employee information
- Pay and deductions
- National Insurance contributions
After you submit
Afterwards, you can view what you owe in your HMRC online account. Usually, this appears from the 10th of the next tax month. Meanwhile, you can claim reductions, such as statutory pay. To do so, send an Employer Payment Summary (EPS) by the 19th. Then, pay the balance by the 22nd, or the 19th if paying by post. Finally, correct any errors quickly by sending a corrected FPS.
When to report extra information
Occasionally, you must report additional details. For example, do this when:
- New employees join
- An employee leaves
- You file the last report of the tax year
- You start paying someone a workplace pension
Get payroll support today
Ultimately, staying compliant need not feel overwhelming. So, if you feel unsure about your obligations, please get in touch today. We would happily manage your submissions and keep your payroll accurate.
