PAYE20001 - employer records: set up employer record: introduction

This introduction is presented as follows

Requirement for a PAYE scheme

The employer record

Nominated management unit

Responsibilities

How to set up a new employer record

Effect of setting up a new employer record

View access to employer records

Wider access

Data Protection Act

Requirement for a PAYE Scheme

A PAYE scheme is only required where one or more of the following occurs / arises

• Payments at or above the lower earnings limit are made to directors / employees
• Payments are made to a director / employee who receives payments from another job or pension
• Benefits and / or expenses are provided to a director / employee
• Payments are made to subcontractors

Or exceptionally

• When a limited company intend to claim a refund of CIS deductions suffered only

Note: If none of the above occur it is not necessary for the employer / contractor to have a PAYE scheme.

The employer record

The office responsible for processing must keep a record (computer and paper) for each employer or contractor from whom an annual return of deductions is due.

When an employer or contractor is first required to operate PAYE they will normally advise us in one of the following ways

• A telephone call to NESI
• Sending their new employer details to NESI through the New Employer Helpline email facility

Or

• The following contact with the responsible processing office

Notes:

1. Any employer, contractor or agent who telephone the responsible processing office should be asked to contact the New Employer Helpline at NESI by either

Or

Unless the scheme type required is one of those the where the Responsible Office deal with setting up the record

2. Any written notification, either by post or by fax, must be dealt with at the responsible processing office
   
   
3. If you receive a form 64-8 (Authorising Your Agent) you must send a copy of the form together with form 64-6A to the Central Agent Authorisation Team (CAAT) who will enter the details on to EBS and other systems

The information provided by the employer or contractor determines what returns, payslips, reminders and forms Debt Management & Banking (DMB) and the Processing Centre send to the employer.

Nominated management unit

Please note that the setting up of an employer record can only take place in the one nominated management unit (MU) within your office.

The employer record can however be moved to another MU within your office where necessary. For more information see PAYE30000 onwards.

Responsibilities

There should normally be only one employer record for any employer who operates PAYE. The employer record is held by a responsible Organisation Unit within the responsible processing office.

Once created, the record remains in existence either as a live employer record or where none of the employer criteria is currently met, as a dormant record. Each new employer has a system allocated employer reference that is protected on the record. Prior to June 2000, the employer reference was allocated manually.

How to set up a new employer record

In order to set up a new employer record you will need to be allocated the user role EBS Employer Maintainer. The computer record can then be set up using Function EMPLOYER SET UP.

Effect of setting up a new employer record

As a result of setting up a new employer computer record details are entered on screen on a Work List, which will be updated daily for each responsible Organisational Unit (OU). This will be accessed using Function WORKLISTS. The list itself will show the OU number then for each work item

• Employer Reference
• Employer Name
• Date Set Up

Notes:

1. When a new scheme has been set up on EBS you must ensure that a record has been created on BROCS before you proceed with any other action, such as COYO, dormancy and so on. This will normally be the next working day but may sometimes be longer.
   
   
2. When setting up a new XP or PSC scheme you must enter a ‘Date Notified’ which is the date you received the information to create the employer record

View access to employer records

A view facility is available for employer records. To use this you will need to be allocated the user role Employer View. This will enable you to access Function VIEW EMPLOYER SUMMARY, which allows access to various view functions for the employer record, even though responsibility for that record may not be within your office.

Note: You must only view an employer record if there is a business need to do so

Wider access

The Employer Business Service (EBS) has been designed to allow staff with the appropriate role to be able to view and / or set up and maintain an employer record irrespective of whether that office is the responsible organisational unit for that employer record.

There may be occasions therefore when an EBS user would need to set up or amend an employer record for another office. If you do so, you may be asked (as with COP function BG and SA Operator Activity Reports) what activity you were pursuing at the time. It may be advisable to keep a record of these accesses.

Please note that any unauthorised or inappropriate accesses will be considered for action under the Department’s Conduct and Discipline rules, and may constitute a criminal offence.

Data Protection Act

The provisions of the Data Protection Act 1998 (DPA) apply to employer records in the same way as they apply to taxpayer records held on other HMRC computer systems.