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Administrator Guide
Last Updated: 2023-06-23
Steps: Record Disguised Remuneration (UK)

Steps: Record Disguised Remuneration (UK)

HMRC treats disguised remuneration as taxable pay. Workers must inform you of any income they receive that HMRC categorizes as disguised remuneration. You can report the income as an item in your FPS.
  1. Access the
    Create Earning
     task.
    Set up an earning that identifies all income that HMRC considers as disguised remuneration.
    Security:
    Set Up: Payroll (Calculations - Payroll Specific)
     domain in the Core Payroll functional area.
  2. Access the
    View RTI Data Item Configuration
     report.
    For the FPS
    RTI Submission Type
    , map the new earning to data item
    197. Amount of Part 7A Disguised Remuneration
    .
    Security:
    Set Up: Payroll (RTI) – UK
     domain in the UK Payroll functional area.
  3. Access the
    Add Payroll Input by Worker
     task.
    In the
    Worker Defaults
     section, select the new earning as the
    Pay Component
    .
    In the
    Input
     grid, enter the remuneration in the
    Input Details - Value
     column.
    Security:
    Worker Data: Payroll (Payroll Input)
     domain in the Core Payroll functional area.
  4. Access the
    Run Pay Calculation
     task.
    Calculate payroll for the period.
    Security:
    Process: Run Batch Calculations (Pay Calculation)
     domain in the Core Payroll functional area.
  5. Access the
    View UK RTI FPS Data
     report.
    Preview your FPS and verify that the
    197. Amount of Part 7A Disguised Remuneration
     column displays the worker's remuneration.
    Security:
    Process: RTI (Reports) - UK
     domain in the UK Payroll functional area.
Where applicable, include disguised remuneration in these data items when you submit your EPS and FPS returns:
  • 41A - Total taxable pay, year to date.
  • 58 - Taxable pay in this pay period.
  • 59 - Net pay after statutory deductions for tax, National Insurance, and all types of Student Loans.
  • 79A - Gross earnings for NI contributions, year to date.
  • 79B - Gross earnings for NI contributions in this pay period.