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Administrator Guide
Last Updated: 2026-03-13
Concept: Statutory Compliance (UK)

Concept: Statutory Compliance (UK)

PAYE

Workday Payroll for the UK supports employer statutory obligations by performing these tax calculations.
Tax
Support for payments of tax includes:
  • Calculation of free pay and additional taxable pay.
  • Rules regarding payments after leaving.
  • Scotland, Wales, and Rest of UK tax regimes.
To calculate a worker's tax deduction amount for a pay period, Workday determines the worker's taxable pay:
  • Year to Date (YTD) for cumulative tax calculations.
  • Period to Date (PTD) for Week 1/Month 1 tax calculations.
National Insurance
Workday Payroll for the UK supports the calculation of Employee and Employer Class 1 National Insurance (NI) contributions, including:
  • NI categories A, B, C, D, E, F, H, I, J, K, L, M, N, S, V, X, and Z
  • Standard NI.
  • Director's NI standard annual cumulative method.
    An employee who is a director at the beginning of the tax year has an annual earnings period for that tax year, even if they cease to be a director before the tax year ends. The annual earnings period runs from 6 April to 5 April.
    Workday also supports these mid-year events:
    • A newly appointed director.
    • A worker becomes a director.
    • A director changes their NI category.
  • Director's NI alternative method is supported for FPS purposes. Check directors' NI for each period, or when they leave or at year-end, and adjust the record accordingly.
  • Payments After Leaving.
To calculate employee's and employer's NI deduction amounts for a pay period, Workday determines the employee's NIable pay:
  • Year to Date (YTD) for Director's NI standard annual cumulative method calculations.
  • Period to Date (PTD) for standard Director's alternative method calculations.
  • Apprenticeship Levy is also calculated and accounted for within the EPS.
Student and Postgraduate Loans
Workday Payroll for the UK supports calculation of worker student and postgraduate loan deductions, including interaction with court orders, to ensure that they are:
  • Prioritised correctly.
  • Not deducted when active court orders (such as those for Council Tax) prohibit it.
To calculate worker student and postgraduate loan deduction amounts for a pay period, Workday determines the NIable Pay Period to Date (PTD).

Court Orders

Workday Payroll for the UK supports these types of court order calculations, including court order fees and correct prioritisation when a worker has more than 1 active court order:
  • Attachment of Earnings Order in respect of Council Tax (Priority)
  • Attachment of Earnings Order in respect of Council Tax (Priority) for Wales, from 1st April 2022
  • Attachment of Earnings Order in respect of Fines (Priority)
  • Attachment of Earnings Order in respect of Maintenance (Priority)
  • Deduction from Earnings Order (Priority)
  • Attachment of Earnings Order (Non Priority)
  • Earnings Arrestment
  • Current Maintenance Arrestment
  • Conjoined Earnings Arrestment
  • Direct Earnings Attachment
  • Debt Arrangement Scheme

Statutory Payments

Workday Payroll for the UK supports calculation and payment of these statutory payments:
  • Statutory Adoption Pay (SAP)
  • Statutory Maternity Pay (SMP)
  • Statutory Neonatal Care Pay (SNCP)
  • Shared Parental Pay (ShPP)
  • Statutory Parental Bereavement Pay (SPBP)
  • Statutory Parental Bereavement Pay for Northern Ireland (SPBPNIRE)
  • Statutory Paternity Pay (SPP)
  • Statutory Sick Pay (SSP)

Pensions Auto-Enrolment

Workday Payroll for the UK supports Pensions Auto-Enrolment requirements, enabling you to:
  • Identify staging and re-enrolment dates.
  • Define pension schemes used for auto-enrolment.
  • Perform worker assessment within the payroll calculation.
  • Enrol workers into the auto-enrolment pension scheme and deduct associated pension contributions.
  • Apply postponement at the employer or worker level.

Payroll Compliance Update Reporting

You can use the
Payroll Compliance Update Documentation
 report, or the Payroll Compliance Updates Dashboard, to view Workday-delivered compliance updates (issued since 14th March 2015) by:
  • Country.
  • Type.
  • Tax year.
  • Delivery date range.
  • Earnings and deductions.
  • Applies to.

Verification of Legal Obligations

Workday Payroll for the UK is designed to assist you generally in the deduction of taxes and other amounts, and the payment of statutory elements required by law. However, you should independently verify your statutory obligations required by HMRC and other bodies.