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3682046 - PY-GB- Transitioning pay frequency from weekly to monthly in UK payroll solution

Symptom

These are the main points that need to be considered from legislation perspective.

In the UK the number of payroll areas required to be configured in SAP is driven by 

  • PAYE Reference – a payroll area can only have 1 PAYE ref assigned.
  • Pay Date – all employees in a payroll area must have the same pay date
  • Pay Frequency – all employees in a payroll area must have the same pay frequency

 

A single Employer can be represented by a single Company Code in SAP configuration but could have multiple tax references i.e. for historic reasons the Monthly Head Office  and Monthly Manufacturing Plants employees are assigned to two different PAYE references. The Employer would configure 1 Company Code but create 2 payroll areas.

 

The object Company Code in SAP does not drive how many Payroll Areas a customer needs to configure.  There is no configuration relationship between Company Code and Payroll Area. There is only a 1:1 relationship with PAYE reference and Payroll Area. The PAYE Reference object is independent from Company Code Object.

 

A PAYE reference in Great Britain payroll is a unique reference number given to employers by HM Revenue and Customs (HMRC) when they register for Pay As You Earn (PAYE) tax. This reference is used to identify the employer's payroll and is used when submitting payroll information and making tax and National Insurance contributions to HMRC. Each employer will have their own unique PAYE reference.


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Environment

  • Human Capital Management (HCM)
  • SAP ERP Core Component
  • SAP ERP
  • SAP enhancement package for SAP ERP
  • SAP enhancement package for SAP ERP, version for SAP HANA
  • SAP SuccessFactors Employee Central integration to SAP Business
  • SAP SuccessFactors Employee Central Payroll

Product

SAP ERP Central Component all versions ; SAP ERP all versions ; SAP R/3 Enterprise all versions ; SAP R/3 all versions ; SAP SuccessFactors Employee Central Payroll all versions ; SAP SuccessFactors Employee Central integration to SAP Business Suite all versions ; SAP enhancement package for SAP ERP all versions ; SAP enhancement package for SAP ERP, version for SAP HANA all versions

Keywords

UK payroll, pay frequency transition, weekly to monthly payroll, PAYE reference, payroll area configuration, SAP Payroll solution, UK legal reporting, payroll compliance, payroll area setup, SAP Notes, payroll period , KBA , PY-GB , United Kingdom , How To

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