Sage Quickpay Payroll Year End FAQs

Q. How do I enable the Auto-Updates and News Feeds features?

To enable Auto-Updates:

Make sure the Automatic Software Updates feature is enabled so that as soon as the PYE 2011 update is available, you’ll be able to download and install it.

1.      Select the Tools – Internet Options menu option.

2.      In the Software Updates tab, select one of the Automatic checkboxes.

3.      Click OK.

You have activated the Automatic Software Updates feature.

To enable News Feeds:

1.     Click the News Feeds button on your Micropay Professional tool bar.

2.     The News Feeds page opens. Click the Configure Feed button.

3.     The Feed Configuration window opens. Select the Enable checkbox.

4.     Click OK to save your settings.

Q. When should the PYE update be run?

This year, the PYE update is available as a download only. So download and install it as soon as it is available. You do not have to wait until the final pay period of 2011.

Make sure that your account number is entered in the Quickpay to also you access to the Sage website. Select Help- About Quickpay and make sure your account number is entered.

Downloading and Installing the PYE Update

Note 1: Installing the update does not affect your payroll data.

Note 2: Installing the update does NOT install Budget 2012 changes. That involves a separate step (Part 4, Step 4: Budget 2012 Update).

Please follow the below steps:-

1.      Check the version in the top left-hand corner of the window.

Your current version of Quickpay should be v11.4.  

If you have an earlier version, contact your support provider for instructions on how to upgrade.

2.      You may need administrator rights on your computer to install the update.

If you are unsure about this, contact your IT person.

3.      When the Auto-Updates feature notifies you that the PYE 2011 Update is available for download and install, make sure all Sage products are closed, and then click Yes.

If you want to check for the update manually, go to the following web page and follow the instructions provided there:

http://www.sage.ie/pye

4.      The Welcome screen opens. Click Next.

5.      Accept the licence agreement by selecting I Agree. Then click Next.

6.      Select the type of installation you require, paying close attention to the onscreen information about these options:

·            Full

·            Client

7.      Click Next.

8.      Verify the installation location and click Next.

9.      Click Next to confirm that you want to go ahead with the installation.

10.    Click Yes to add shortcuts to your desktop.

11.    When the update process is complete, click Finish.

Note: You may also be prompted to install the latest Adobe Acrobat Reader (if it is not already installed).

12.    Click the Windows Start button.

13.    Launch Quickpay and log into a payroll.

14.    Quickpay 2011 should now be at Version 11.5. Check the top left-hand corner of the program window to confirm this.

Note: You’ll also have a new shortcut to Quickpay 2012, which is version 12.0.

15.    The Update Files window opens:

a.      If you did not ‘Back up your Payroll System’ before installing the Update, click Backup Now to back up your payroll data. Otherwise, click I already have a backup.

b.      Click Update to convert your payroll data so that it is compatible with the new Sage Quickpay version.

c.      Click Confirm to make your converted payroll data active.

Q. Why am I being asked to install Microsoft .Net Framework 4 when I am running the PYE update?

When running PYE update for either Quickpay or Micropay Professional, you may be prompted to install Microsoft .Net Framework 4 if this is not already installed on your pc. 

This is because some components of the latest Quickpay & Micropay Professional updates are dependent on .Net Framework 4 running on your computer. Also please note, this is a separate installation completely from the PYE update.

You can download the Microsoft .Net Framework 4 free from the following website:- http://www.microsoft.com/download/en/details.aspx?id=17851 or by clicking the link on the warning message that appears when you run your payroll update.

You will need an internet connection & administrator rights to install this.

After installing the Microsoft .Net Framework 4, you can install the latest updates of Quickpay and Micropay Professional.

If you have any queries, please contact support on 1890882060 or pye@sage.ie

Q. What is an extra pay period (week 53) ?

Week 53 occurs in a weekly payroll when there are 53 pay days in the tax year. There are normally 52 pay periods in a weekly payroll, but in some years the dates fall in a way that gives rise to an ‘extra’ pay period’.

An extra pay period can also occur in fortnightly and four-weekly pay frequencies:

Fortnightly payrolls normally have 26 pay periods, but can occasionally have 27.

Four-weekly payrolls normally have 13 pay periods, but can occasionally have 14.

Employees are entitled to tax credits for the extra pay period, but only on a Week 1 basis.

This means that the employee receives more than the year’s total tax credits. The Inspector of Taxes will take this into consideration when issuing the next year’s tax credits.

An employee receives an insurance week for the extra pay period only if they have not already received the maximum 52 insurance weeks. You need to enter this insurance week in the Timesheet Entry screen if necessary.

Q. Do I have an extra pay period?

After you have fully completed Week 52 (or Fortnight 26, or Four-Weekly Period 13), check the date on which the next payday occurs.

If your first pay period of 2011 fell on Saturday 1st January, you have an extra pay period.

If the payday fell on any other date, you DO NOT have an extra pay period. This pay period must be processed as Period 1 of the new tax year.

Incorrect processing of an extra pay period may result in inaccurate returns for that tax year.

Only the date of payment (not the date of work) determines whether a pay period is ’extra’ in the current year. So if you have a pay date of 03/01/2012, this must be processed as Period 1 of 2012, regardless of when the actual work for this period was done.

Q. Should I run a week 53 over the christmas period?

Generally, the answer to this question is ’No’. You only run a Week 53 when there is an extra pay period to be processed in the tax year, regardless of any other circumstances.

Q. My employees are on holiday over the Christmas period. Should I run a Week 53 to ensure they get their holiday pay before their holiday begins?

If the pay date for the holiday week falls in January rather than December, the holiday week is not an extra pay period, and must be processed as a normal week in period 1 of the new tax year.

If Week 1 of the new year is a holiday week, and you still want to pay your employees for this week in advance of their holidays, carry out the following steps:

• Complete the current tax year
• Run the Payroll Year End in full
• Set Period 1 of the new year

This can be done at any time after you have installed the Payroll Year End Update.

Q. Universial Social Charge (USC) Recalculation

This recalculation occurs when the employee reaches 52 insurable weeks in this tax year. (The recalculation occurs in this pay period only. If there is a subsequent extra pay period, this is processed as normal.)
Where an employee is in continuous employment with a particular employer throughout the entirety of the year, the employer should make adjustments to USC liabilities.

The annual rates applicable from Jan 1, 2011 for individuals under 70 are as follows:

If you are aged 70 or older, the following annual rates and thresholds apply:

Example 1: If your Annual Gross Income is less than €4004

This means that the employee's Gross Income for the tax year is less than €4004, so the employee is exempt from the Universial Social Charge.

If Universial Social Charge was deducted for any pay period in the tax year, a full refund of this amount is due to the employee.

The system determines whether the employee is subject to Universial Social Charge by calculating the Gross Income values for this tax year:

It sums the existing Gross Income values for each pay period in the Employee Details window's Tax Deduction Card.

It adds this value to the employee's Gross Income value in the current pay period to determine the Gross Income This Year value.

If the Gross Income This Year value is less than €4004, then any USC values deducted during the year should be refunded to the employee in this pay period.

Example 2: Employees aged 70 or older

If an employee age is 70 or over, any income above the period thresholds is at the rate of 4%.

Over 70's are not subject to the 7% rate.

Be sure to enter the employee's Date of Birth in the Edit Employee - Tax/PRSI tab, as this will enable to USC recalculation to refund any overpayments that were made over the 4% capping at the end of the year.

Example 3: Full Medical Card Holder

The USC rate is capped at a maximum rate of 4% for Medical Card holders, irrespective of the level of their income.

If an employee was in possession of a Full Medical Card at any point during the tax year, they are entitled to the 4% capping for the entire year.

An employee who started the year without a Full Medical Card may have paid USC contributions at the higher rate of 7% during the year. So if they subsequently obtained a Full Medical Card, their USC contributions over the 4% capping must be refunded to them at the end of the year.

Example 4: An employee paid USC at a higher rate than they are liable to

Suppose that a particular employee normally pays USC at a particular rate(s).

Due to an increase in the payments they receive in one or more pay periods, they are temporarily pushed into a higher USC rate.

However, at the end of the year their Gross Income is below the threshold for the higher USC rate to which they were temporarily subject.

Let's look at how the employee's pay broke down per pay period in this example, and how this affected the USC they paid.

As you can see, in one pay period the employee's Gross Income results in the employee paying USC at a higher rate.

The employee's Gross Income at year end is €13,000.00, and they paid €325.91 in USC for the full year.

Based on their Gross Income for the full year, their USC liability for the full year is recalculated at the end of the year as follows:

2% on income up to €10,036 : (10,036 x 2% = €200.72)

4% on the remaining balance, as the Gross Income does not exceed the €16,016 threshold: (13000-10,036) x 4%  = €118.56)

As the Gross Income was less than the €16,016 threshold, there is no 7% calculation. (0 x 7% = 0)

Total Recalculated USC Liability for the Year €319.28

So the employee is entitled to a refund of:

€325.91- €319.28 = €6.63

Important Notes

If the USC recalculation determines that the employee has underpaid USC over the year, the discrepancy will not be highlighted in their payslip. Underpayments will be dealt with directly by the Revenue Commissioners.

Only employees who have been in continuous employment with the company throughout the year will be refunded an USC overpayment in the manner described above. Other employees entitled to an USC refund must apply to the Revenue Commissioners.

Q. Pension-Related Deduction (PRD) Recalculation

If employees in your payroll are subject to the Pension-Related Deduction (PRD), the PRD Recalculation is performed by default for each employee in the pay period in which they reach the end of the tax year. If there is a subsequent extra pay period, this is processed as normal.

You can disable the recalculation if necessary by deselecting the PRD checkbox in the Timesheet Entry window.

• Overpayments

Any PRD refund will be incorporated into the normal PRD item in the employee's current payslip, and will be flagged by an explanatory note.

If the employee was liable to a normal PRD amount of €20 in period 52, the refund amount (say, €51.24) would be subtracted from this, leaving the current payslip's PRD item with an amount of -€31.24.

The explanatory note would explain that the employee received a PRD refund of €51.24.

Important points to note:

· Previous Employment PRD45 values are taken into account in the PRD Recalculation.

· If this employment is marked as a "subsidiary" employment for the employee, you should deselect the checkbox. In such a case, the employee's main employment should deal with the recalculation and any refund that is due.

Example 1: Monthly employee below the lowest PRD threshold

If an employee's PRDable Pay for the tax year is less than €15,000, the employee is not liable to pay PRD.

So if such an employee paid an amount of PRD in any pay period of 2011, they are entitled to a full refund.

Let's look at an example of this. Suppose that the employee is paid monthly as follows:

The employee paid PRD in pay period 4: €54.17

The employee's PRDable earnings for tax year 2011: €15000

This is below the lowest PRD threshold for 2011, so the employee is due a refund of all PRD paid.

Refund due: €54.17

Example 2: Monthly employee liable to the lowest PRD rate

Suppose that the employee's PRDable salary for tax year 2011 is €19000.00, broken down as follows:

Total PRD Paid in 2010: €241.67

PRD Recalculation:

Amount of PRDable income above the 5% PRD threshold: €4000

4000 x 5% = €200.00

Amount of PRDable income above the 10% PRD threshold: €0

0 x 10% = €0.00

Amount of PRDable income above the 15% PRD threshold: €0

0 x 15% = €0.00

Total Recalculated PRD = €200.00

So the employee is due a PRD refund of:

241.67 - 200.00 = €41.67

Q. How do I print P60s?

You must print P60s for each employee who is still in your employment at the end of 2011:

You can print a P60 using plain A4 printer paper or using special P60 stationery.

You can also produce P60s in either English or Irish.

If the application detects any errors in your payroll data, they will be listed onscreen when you try to create the relevant P60 report. You must correct all errors before you can create the report.

The relevant P60s are printed. Two copies are printed per employee.

One should be kept in your records.

The other should be given to the employee.

Q. PRSI classes exceeds the number of classes allowed

This error may occur if the insurance weeks have exceeded the number of valid weeks allowed for the year

Q. BIK for Period 53 not showing on consolidated P35

This issue can be due to the calendar being set up incorrectly in one or all companies. You can check your calendar dates by logging into the appropriate company and going to the Company/Payroll menu and choose calendar.

Q. Employee not paying PRSI when they should be

The error may occur if manual adjustments have been made during the year or there is a zero value timesheet saved. In the Employee Details screen, ETP tab you will need to manually adjust the period line that has the PRSI discrepancy.

Q. What must I do by Feb 15th 2012?

The Feb 15th, 2012 submission deadline

You must submit the P35 return to the Revenue Commissioners by February 15, 2012. You must also submit the PRD35, if applicable.

Your employees must have received their P60s, Universial Social Charge Certificates and PRD60s (if applicable) by the same date.

Q. What checks do the Revenue Commissioners recommend I carry out in my payroll data?

o Ensure that a valid Tax Registration number has been entered in the Company Details window.

o Ensure that you use the correct combination of weeks/class. Total Insurable Weeks must be greater than the sum of the Weeks at Second Class, Third Class and Fourth Class.

o Ensure that you enter the Employer Registration Number in the Company Details window.

o If an employee PPS Number is missing, ensure that the employee’s Name and Address are specified, or alternatively their Date of Birth.

o Check the recording of Class A0 is correct by ensuring that you have used a zero (A0), and not the letter O (AO).

o Make sure that the P35 includes the payroll totals relating to Pensions, PRSAs, RACs and CWPS schemes. These are required under Section 86 of the Finance Act, 2004.

Q. Are there any special requirements for a P35 to ROS submission?

You must be a registered ROS (Revenue Online Service) customer to use the P35 to ROS option.

Revenue recommends that you allow up to three weeks for this registration process. You must have a working e-mail address to register with ROS.

Valid Payroll and Employee names can contain letters and any of the following characters / & . ( ) ‘ “ ‘ { } [ ]

Q. Quickpay’s Login screen says my payroll does not exist.

Q. My payrolls are not listed in the 2011 Login screen.’

A payroll is not listed in the 2011 Login Screen’s until you have set up Tax Year 2011 for the payroll.

You do this after you have processed the final 2010 pay period.

To set up Tax Year 2011 for the payroll, follow the steps in How do I set up Tax Year 2011?.

Q. How do I set up Tax Year 2012?

To set up Tax Year 2012 for a particular payroll (which transfers the relevant employees into the new year), log into the payroll’s 2011 tax year.

Select the Year End - Tax - Set up 2012 Tax Year menu option.

Tax Year 2012 is now set up. You are still logged into the 2011 tax year.

You can continue to work in 2011 if necessary, or you can log into the 2012 tax year.

To do this:

Click the Start button on your desktop. (You don’t need to close down 2011.)

Select All Programs - Quickpay - 2012 - Quickpay.

Log into the payroll in the normal way.

You are now working in the 2012 tax year. Initially, the payroll will not have a status. As Period 1 has yet to be set.

You should be on Quickpay v12.1 before any processing for 2012 begins. This can be checked by looking at the top left-hand corner of the window.

You can switch between the two tax years as necessary by closing Quickpay and selecting the relevant menu option in the Start menu on your desktop.

Q. Validate Payroll Data Gross Deduction Error message

The deduction "Deduction name" in the 'Payments/Deductions' screen is a gross deduction. If it is pension deduction, it must be linked to a pension scheme".

Solution:

This is just a warning to ensure that your Gross deduction is not a pension deduction.
If it is not a pension deduction you can ignore this message.
If the deduction is a Pension deduction it needs to be linked to a Pension Scheme.
You can set up the Pension Scheme Link in the Company/Payroll Setup menu - Pension Link menu.
You can then assign the Pension Scheme Link to the deduction in Company/Payroll Setup - Payments/Deductions

Budget Update 2012

Complete this step before you process any pay in 2012. Otherwise statutory deduction rates will not include the changes announced in Budget 2012.

Install the Budget 2012 Update file as soon as the update is available.

Your payroll system won’t include Budget 2012 changes to statutory deductions until you do this.

You will receive a News Feed message in your payroll software as soon as the Budget 2012 Update is ready for download.

So make sure you have activated the Auto-Update feature. This ensures that when you log in, you will receive an automatic notification if the Budget Update file is available for installation.

(You can also set this feature so that updates are downloaded and installed automatically.)

If you want to check for the update manually, go to the following web page and follow the instructions provided there:

http://www.sage.ie/pye

A successful update will change the version to Quickpay v12.1 in the top left-hand corner of the window.

Q. Construction Workers Pension scheme when does it begin in 2012?

The Construction Workers Pension scheme begins on Monday January 2^nd 2012.

Q. Where do I enter my Account & Serial Number when updating the Sage Licence Details within my payroll program?

Sage have implemented our new payroll licence system in October 2011. This will now allow us to provide a faster, more efficient support service to you, our payroll customer.

Sage will now be able to provide all licenced customers with their software updates directly through Quickpay/Micropay Professional via our auto update service. We will no longer issue CDs, which will reduce any delays in getting vital software updates to you, particularly at critical times of the year such as Payroll Year End (PYE).

It will also give you the confidence that your software is constantly up to date, helping you remain compliant with the latest legislation and budget updates. What do I need to do today?

If you haven’t done so already, simply follow steps 1-3 below to activate the Licence Manager feature to ensure your product is ready to receive software updates.

1) Enter your Sage account number into the program, if you haven’t previously done so. In your payroll program go to the top toolbar, select Help - View Licence Information. Select the Edit button and enter your Sage Account & Serial Number. Click OK to save your settings.

If you are unsure of what account or serial number to enter, simply give our Payroll Support Team a call on 1890 88 20 60 or email pye@sage.ie.

2) To turn on the auto update service in your payroll program, go to the top toolbar, go to Tools - Internet Options. Choose the ‘Recommended’ option and click OK to save your settings.

3) To turn on your Product News Feeds service in your payroll program, go to the top toolbar, go to Help - View News. Click on Configure feeds. Tick the Enable checkbox and click OK to save your settings

Those are the three steps to activating the Licence Manager feature on your Payroll Software.

N.B. If your licence information is not updating correctly after completing the above steps, the Licence Manager feature is not connecting to the Sage Server. The first thing to do, is get your IT to check your settings and allow access to the following URL: https://licensing.services.sage.com/lic/services/LicenceService

Make sure that this URL is not blocked by your firewall or anti virus. Please note, you will not be able to open this URL through your Internet browser. You just need to allow access to this URL; as this links to our server site and updates your program's Licence Manager details.

Should you have any queries about the new payroll licence system, simply give our Payroll Support Team a call on 1890 882060 or email pye@sage.ie.