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    Richard Beet
    EPBCS Workforce - UK Employer NI Tax
    Topic posted February 12, 2018 by Richard BeetRed Ribbon: 250+ Points, tagged Workforce 
    63 Views, 3 Comments
    Title:
    EPBCS Workforce - UK Employer NI Tax
    Summary:
    Calculating UK Employer NI Tax within Workforce
    Content:

    Hi, 

    Our client requires the UK Employer NI Tax adding to their Workforce Framework. 

    As there are certain thresholds associated with the tax, i.e. taxable at 13.8% for those employees over the age of 25, and that the 13.8% only applies on the difference between basic salary and the tax free allowance (circa £8000), we cannot see how the out-of-box tax calculations will work for our UK-based customer. 

    Does the Workforce framework deliver an out-of-box calculation for UK Employer NI rather than having to go down the route of creating a custom formula? Anyone else encountered similar issues in calculating UK tax within Workforce? 

    Thanks, 
    Richard 

    Comment

     

    • Mark Rinaldi

      Under Safe Harbor provisions, we should deliver this functionality in the near-term (estimated to be within first half CY18).  We are working on a "Threshold Scope" where you can select YTD or MTD.  Since UK NI is based on MTD thresholds, this should solve the issue as it will subject the employee to the thresholds each month such that the subsequent month resets the thresholds to be applied. 

      If this is an immediate need, please review my document with the steps to modify the out-of-box (OOB) rules so that you may incorporate the MTD logic now.

       

      Enterprise PBCS - Using Workforce.pdf (2.9MB)
    • Mark Rinaldi

      Also, regarding the age threshold.  You could leverage the default "Union Code" classification to denote those users that fit the age threshold to have a separate rate/tiered payout.

    • Richard Beet

      Thanks Mark, we'll give this a go and let you know how we get on. Cheers.

     

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