Creating a New Payee (Onboarding) (Payroll UK)

Before a job order which has been filled by a candidate can be submitted to timesheet and the candidate can be paid, a payee record must be created for the candidate in the Payroll module.

Multiple payees can be created for each candidate. However, a candidate cannot have multiple payee records with the same tax type for the same pay company with overlapping employment dates.

Before you attempt to create a new payee record for a candidate you must know the following information:

the name of the pay company by which the payee will be employed
the tax type that will apply to the payee (PAYE, CIS or Contractor)
the payee type
- Contractor or Umbrella - for tax type of Contractor
- CIS - for tax type of CIS
- PAYE or Deemed Contractor for tax type of PAYE
the employment type that defines the attendance and absence types that are available for the payee on their timesheets in the Time and Attendance module and the absence types that are available for the payee in the Leave Request module
the payee's starter checklist information (for tax type of PAYE only)
documentation to change the NI category from the default age categories (deferment, proof of age, reduced rate)
the payee's default bank account details (only required if payment will be by electronic funds transfer).

To create a payee you must do the following:

Find and select the candidate to which the new payee will correspond.
Create a new payee record for the candidate.

The procedures for performing both of these tasks are described below.

The procedures below explain the actions you need to perform to save a new payee record. Once a payee record has been created, additional actions are required before the payee can be assigned to a pay group and can therefore be paid in a pay batch. For more information, see Working with Existing Payees.

How to Search for a Candidate

To search for a candidate, follow the procedure below.

How to Search for a Candidate
	Go to the Portal > Pay > Payee > Payee Maintenance screen.
	Go to the Payroll Details tab in the search criteria and remove the validity from and to dates. The validity dates will look for payee records within the validity dates. When searching for candidates that do not have a payee record, these dates need to be removed. The header at the top of the Payee Maintenance screen displays candidate search fields.
	In the search fields in the header of the screen, key in or select as much information about the candidate as possible First Name Filters the list of candidates according the first name of a candidate. Leading and trailing wildcard characters (%) can be used for partial matching on the name. For example, %anne will match names such as Anne and Mary Anne while mary% will match names such as Mary and Marry Anne. Middle Name Filters the list of candidates according to the middle name of a candidate. Leading and trailing wildcard characters (%) can be used for partial matching on the name. For example, %anne will match names such as Anne and Mary Anne while mary% will match names such as Mary and Marry Anne. Surname Filters the list of candidates according to the surname of the candidate. Leading and trailing wildcard characters (%) can be used for partial matching on the surname. For example, %hill will match names such as Hill and Summerhill while summer% will match names such as Summer and Summerhill. Payee No. Filters the list of candidates according to the payee ID that uniquely identifies any existing payee record to which the candidate is linked. Candidate No. Filters the list of candidates according to the system-generated candidate ID that uniquely identifies a specific candidate. Email Filters the list of candidates according to their email address. Leading and trailing wildcard characters (%) can be used for partial matching on the email address. For example, % smith@email.com will match email addresses such as rsmith@email.com and jsmith@email.com while rsmith% will match email addresses such as rsmith@email.com and rsmith@email.com.au. Filled on Job Without Payee When ticked, the list of candidates will include only those candidates who are filled on a job order but do not have a valid payee record for the pay company to which the job order is linked and Brand Filters the list of candidates according to the agency brand by which they are managed. To list only those candidates who are managed by a specific agency brand, select the relevant brand in this field. Region Filters the list of candidates according to the agency region by which they are managed. To list only those candidates who are managed by a specific agency region, select the relevant region in this field. Office Filters the list of candidates according to the agency office by which the candidates are managed. To list only those candidates who are managed by a specific agency office, select the relevant office in this field.
	Click Search Payees . A list of candidates matching your search criteria is displayed in the candidate list on the screen.

How to Create a New Payee Record

To create a new payee record, follow the procedure below.

How to Create a New Payee Record
	Search for the candidate for whom the new payee record is to be created and list the candidate on the Portal > Pay > Payee > Payee Maintenance screen (for more information, see How to Search for a Candidate above).
	In the list of candidates on the Payee Maintenance screen, click on the relevant candidate so that the candidate is selected and click . The Payee Entry screen opens with the Employment Details panel activated at the top of the screen, thereby allowing you to start defining the employment details of the new payee record.
	In the Pay Company field, select the name of the pay company by which the payee will be employed. Be careful to select the correct pay company as you will be unable to change the selection once you save the payee record.
	In the Tax Type field, select the tax type that will apply to the payee. Be careful to select the correct tax type as you will be unable to change the selection once you save the payee record.
	Select the required payee type. If the tax type applicable to the payee is Contractor, in the Payee Type field select Contractor if the payee is responsible for their own taxes. If the contractor is supplied via an Umbrella company select Umbrella. If the tax type is PAYE in the Payee Type select PAYE if the payee is a worker. If the payee is a contractor that is deemed as an Off Payroll Worker, select Deemed Contractor. Be careful to select the payee type as you will be unable to change the selection once you save the payee record. Skip this step if the tax type of the payee is CIS.
	Next to the Start Date field, click and use the calendar control to select the payee's employment commencement date.
	If the tax type is PAYE, the additional tab of Starter Details will be displayed and will be the first place to commence entering data relevant for the payee. For tax type of PAYE, it is mandatory for a declaration to be entered and you will not be able to save the payee record until a selection has been applied. From the starter checklist you have received for the payee, select the appropriate declaration. If the payee type is Deemed Contractor, the starter declaration option will be defaulted to C but can be changed. The selection will automatically apply the starting tax code to the HMRC Details section in Payee Details based on the declaration selected: A will apply the personal tax allowance cumulative for the relevant tax year B will apply the personal tax allowance week1/month1 for the relevant tax year C will apply Basic Rate No declaration will assume 0T week1/month1 for the relevant tax year If the payee has indicated on their starter checklist form that a student loan and/or a postgraduate loan should be deducted, select the required student loan type and/or indicate if the postgraduate loan (postgraduate loan will be available from version 11.43 onwards) should be deducted. If the payee has supplied a P45, enter the relevant details in the Student Loan and P45 Detail sections. This will supercede the tax code determined from the starter declaration selection. A P45 validator has been supplied for you to check if the P45 data is correct. Click . The system will validate if the tax is correct for the amount of taxable pay entered for the tax code and tax period entered. If it is incorrect, a confirmation box will be displayed. You can decide if you wish to use the figures entered or if you wish to use the figures the system has determined. Skip this step if the tax type of the payee is Contractor or CIS.
	In the Pay Group field in the Employment Details section, select the pay group that the payee should be attached to. A pay group must be selected to determine the NI Categories and tax codes relevant for the tax year for that pay group to ensure correct application to the payee.
	In the Employment Type field in the Employment Details section, select the employment type that will apply to the payee. The employment type will determine the attendance and absence types that are available for the payee on their timesheets in the Portal > Time and Attendance module and the absence types that are available for the payee in the Portal > Leave Request module.
10.	In the Payment Method field in the Employment Details section, select Cheque if the payee is to be paid by cheque or if to be paid directly into their bank select 'BACS' (BACS is the default). If the payee type is Umbrella, it is recommended the payment type is Cheque as it is the Umbrella company that will be paying the payee.
11.	The HMRC Details section will be available for tax types PAYE and CIS but the fields on the screen will differ depending on the tax types. It is from this area that the pay batch will use the required statutory data to determine the statutory deductions applied: For tax type PAYE NI Number - If supplied from the candidate record, this will automatically be populated but can be updated here. If no NI Number number is supplied, the payee must have a gender, date of birth and 2 lines of address. Validation will be performed to check the validity of the characters in the prefix and suffix. NI Category - This is determined based on the payee's date of birth and when they are due to be paid. The NI Category cannot be changed to another age dependant category where the validation is not met. For example, you cannot change the NI category to 'C' if the payee is under the state retirement age. Where the payee has a tax type of Contractor this will automatically be set to 'X' as contractors do not pay National Insurance. For the payee type of Umbrella, the NI category will also be 'X' as they will have NI calculated by their Umbrella Company. Apprentice - If checked, this will apply the appropriate NI Category for the payee's age. Deferred - If the payee has supplied a deferral certificate, this will apply the deferral NI category appropriate for the payee's age. Tax Code - This is made up of 3 boxes: the regime, the tax code and the tax basis of Week1/Month 1. If the payee tax type is PAYE, the tax code will be populated from the declaration selected or P45 details, if entered,in the Starter Details tab. If the payee tax type is Contractor the tax code will be defaulted to 'NT'. It is the responsibility for the user to ensure the correct tax code has been applied. Student Loan - If the student loan type has been selected from the Starter Details tab, this will be populated into the Student Loan field. It is the responsibility of the user to ensure that the correct student loan type has been selected. Postgraduate Loan - If the postgraduate loan indicator has been set to Yes, this will be populated into the Postgraduate Loan field. (will be available from version 11.43 onwards) Irregular Employment - This flag will update the irregular employment flag sent in the FPS to the HMRC. If this is checked, this means that the HRMC will not terminate their employment records of the PAYE worker after 12 weeks of no submissions for that payee. Normal Weekly Hours - Select the required normal weekly hours category. This information is sent to the HMRC on the FPS. For tax type CIS NI Number - If supplied from the candidate record, this will automatically be populated but can be updated here. NI Category - This field is not visible but is defaulted to category 'X' for no National Insurance. Is Verified - An agency user must use the HMRC’s verification tool to verify the CIS payee to obtain the correct tax treatment. A payee should not have a tax treatment of ‘Standard’ or ‘No Tax’ without being verified and the user will not be able to change the tax treatment unless they confirm the payee is verified with a verification number. A payee can still have the tax treatment ‘Higher’ even after receiving a verification number. If the Is Verified is unchecked, this will remove the verification number and revert the tax treatment to ‘Higher’, if different. Verification Number - The Verification number will be supplied by the HMRC when you verify the payee using the HMRC online software. When the Is Verified is checked, the Verification Number field is enabled and requires entry. The verification number will be defaulted with ‘V’ at the beginning. The format is 10 characters with up to 2 optional letters excluding I and O. If the pay group setting Contractor Only Pay Group is checked, this means that the pay process will not consider the HMRC details data at all. If your pay group has a mixture of tax types, you must ensure that this flag against the pay group is not checked.
12.	If the payee is to be paid by BACS, use the Banking Details tab to add a set of bank account details that capture the payee's banking details.
13.	At the top of the Payee Entry screen, click . A confirmation message opens, indicating the payee has been saved.