Setup Considerations: Year-End Payroll Processing (UK)

Administrator Guide

You can use this topic to help make decisions when planning your configuration and use of UK year-end payroll processing. It explains:

Why to set it up.

How it fits into the rest of Workday.

Downstream impacts and cross-product interactions.

Security requirements and business process configurations.

Questions and limitations to consider before implementation.

Refer to detailed task instructions for full configuration details.

What It Is

UK year-end processing is a series of tasks, reports, and integrations in Workday that helps you complete the current tax year and prepare for the next.

Workday supports the P60 year-end tax form and these processes:

Earlier Year Update (EYU) for the 2018-2019 and 2019-2020 tax years.

Real Time Information (RTI) Full Payment Submission (FPS).

RTI Employer Payment Summary (EPS).

Tax code uplift at the start of a new tax year.

Business Benefits

Workday makes it easier to handle your year-end payroll requirements by:

Maintaining payroll data in a single location to validate payments to HMRC.

Enabling you to provide workers with electronic and printed versions of year-end tax forms to your workers. Workers can access electronic forms on desktop and mobile using employee self-service (ESS).

Use Cases

Year-end payroll processing enables you to:

Enable workers to opt in or out of a paper copy of their year-end tax forms.

Enable workers to view and print their electronic year-end tax forms in ESS.

Generate P60 data for eligible workers.

Review year-end form updates.

Questions to Consider

Questions	Considerations
How do you want to produce P60 year-end forms?	You can print P60s or enable online forms for ESS. You need to set up printing options for your company to print hard copy P60s.
Have you changed any pay component groups after completing payroll and later need to adjust a balance?	You can create manual payments if you need to adjust balances. Example: To update the year to date balances for a worker's P60, process an on-demand additional payment.

Recommendations

To prepare for the year-end process, Workday recommends that you:

Ensure that your HMRC PAYE account matches your PAYE results in Workday and investigate and correct any differences.

Create test versions of your PDF and integration year-end forms and, if necessary, amend for the new year.

Verify that all pay components have correctly configured pay component groups. Pay component groups control how Workday reports some amounts on payslips. Pay component groups can also control taxable wages on P60 forms.

When you complete the final period payroll for a tax year, Workday recommends that you process items in this order:

View and correct RTI FPS exceptions.

Send FPS data to HMRC.

Send EPS data to HMRC.

If necessary, run an Earlier Year Update.

Create and distribute workers' P60 forms.

At the start of a new tax year, Workday recommends that you process items in this order:

Review HMRC changes to year-end processes or forms.

Process any HMRC notifications.

Run a tax code uplift and clear down.

Set up the period schedule for payroll and absence.

Update holiday calendars.

Apply any contractual or statutory changes for the new tax year. Example: Budget changes. Workday provides this information on the Payroll Compliance Updates dashboard.

Requirements

At the beginning of the tax year:

Set up period schedules and holiday calendars to support the entire year.

Validate payment dates for the year against weekends and public holidays. Example: Bank holiday rescheduling to celebrate a specific historic occasion.

Verify that new ledger periods are in Open
status.

For workers who have had childcare vouchers since April 2011, manually assess their tax bracket and adjust their records to match.

Register with HMRC before it introduces benefit-in-kind changes on April 6. Workday recommends that you notify workers of changes to benefit in kind in a timely manner.

Near the end of the tax year:

Complete all payrolls for the tax year, including off-cycles and manual adjustments.

Verify that your company name, address, and tax references are correct.

For P60 forms, ensure that your mapping of data items follows HMRC guidelines. Workday recommends that you generate a test version to check its layout.

Identify data items used for gender pay gap and pension reporting.

Limitations

Workday supports EYU for the 2018-2019 and 2019-2020 tax years only.

Workday creates a P60 for all active workers as of 5th April each year, and for workers who left between April 1 and 5. For workers who left before April 1, you must generate a P45 detailing their tax information, along with any student or postgraduate loan details.

Workday doesn't support the:

Office of National Statistics Annual Survey of Hours and Earnings (ASHE) return.

P11D form.

PAYE Settlement Agreement (PSA).

Tenant Setup

No impact.

Security

Configure these domains in the UK Payroll functional area.

Domains	Considerations
Process: HMRC Notifications - UK Process: HMRC Notifications (Run) - UK	Enables you to retrieve and apply changes to workers' tax code details from HMRC.
Process: New Hire Tax Details	Enables you to process the P45 and tax details new hires provide during their onboarding process.
Process: P60 - UK	Enables you to set up and manage P60 generation.
Process: P60 (Reports) - UK	Enables you to: Generate and print workers' P60 forms. Configure the layout of the postal address header sheet that accompanies each P60.
Process: P60 (Run) - UK	Enables you to identify workers who require a P60.
Process: RTI - UK	Enables you to generate RTI submissions for HMRC.
Process: RTI (Reports) - UK	Enables you to report on RTI submissions.
Process: RTI (Run) - UK	Enables you to process RTI data.
Process: Tax Code Uplift and Clear Down - UK Process: Tax Code Uplift and Clear Down (Run) - UK	Enable you to update workers' tax details with information from HMRC.
Set Up: Payroll (Company Vehicle) - UK	Enables you to record company vehicle data.
Set Up: Payroll (RTI) - UK	Enables you to generate your RTI FPS data for HMRC.
Set Up: Payroll UK	Enables you to set up and view payroll-specific data that isn't based on Pay Group or Company. Example: Employer Reference details.
Worker Data: Payroll (Company Specific) - UK	Enables you to maintain noncompany specific data for workers. Example: Individual tax details.
Worker Data: Payroll (Company Vehicle) - UK	Enables you to record company car data for workers.

Business Processes

Configure the Tax Code Uplift Event
business process and security policy in the UK Payroll functional area. This business process enables you to update workers' tax details for the new tax year with information from HMRC.

Reporting

Reports or Dashboards	Considerations
Payroll Compliance Updates dashboard.	Use the dashboard to review Workday-delivered compliance updates.
PCGs for Payroll Calculations report.	Use this report on the Payroll profile group to verify that pay components are in the appropriate pay component groups. Use the Tenant Analyzer to verify that you've optimized information in your tenant.
View Advanced UK RTI FPS Data and View UK RTI FPS Data reports.	Use these reports to display FPS values generated for selected payroll results and preview your submission details.
View Advanced UK RTI FPS Exceptions and View UK RTI FPS Exceptions reports.	Use these reports to display errors or warnings on final pay period payroll results. The View UK RTI FPS Exceptions report displays a maximum of 1000 rows.
View New Starter Checklist Responses	Use this report to view new hires' responses to the New Starter Checklist on the Provide New Hire Tax Details task.
View UK Apprenticeship Levy report.	Use this report, when reconciling your payments, to verify your monthly and annual apprenticeship levy amounts.
View UK FPS Amounts Reported To HMRC report.	Use this report when you reconcile your payments against your PAYE account.
View UK Gender Bonus Gap Reporting report.	Use this report to provide bonus payment data for your annual gender pay gap report to HMRC.
View UK Gender Pay Gap Hourly Rate of Pay report.	Use this report to provide pay data for your annual gender pay gap report to HMRC.
View UK P60 report.	Use this report to review queued P60s for a specific company and groups of workers.
View UK RTI EPS Data report.	Use this report to verify the calculated data in your EPS submission.
View UK RTI FPS Worker Company Car Data report.	When your company has an agreement with HMRC to include company cars as benefits in payroll, use this report to verify a worker's car and its annual costs.
Worker UK Tax Details report.	Use this report to review a worker's new tax code after you run a tax code uplift.

Integrations

Integrations	Considerations
HMRC Incoming Notifications	Submits Data Provisioning Service (DPS) requests for these notification types: P6, P6B, P9, SL1, SL2, PGL1, and PGL2.
HMRC Real Time Information	Submits FPS files to HMRC RTI.
HMRC Real Time Information Earlier Year Update	Submits RTI Earlier Year Updates.
HMRC Real Time Information Employer Payment Summary	Submits EPS files to HMRC RTI.

Connections and Touchpoints

Workday uses worker data to produce P60 data and forms. Example: Provide any required information, such as home address, postcode, and National Insurance number in Workday Human Capital Management. Workday determines the work state of the worker from this information.

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your tenant. Learn more about the Workday Touchpoints Kit on Workday Community.

Setup Considerations: Adjustments for Prior Periods

Run Tax Code Uplift and Clear Down (UK)

Record Worker RTI Earlier Year Update Details (UK)

Process HMRC Notifications (UK)

Create P60 Forms for Workers (UK)

Steps: Set Up Real Time Information Reporting (UK)

Workday Community: Workday Payroll for UK Year-End & Year-Start Checklist