The application of existing and new legislation issued by the Pensions Regulator, Teachers Pensions and the Local Government Pensions Scheme (LGPS)

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1 HR/Pay Services Introduction Dorset s Human Resources HR/Pay Service provides a comprehensive service with the prime objective of paying people accurately, on time and reflecting the correct contractual relationship between the employee and the employer. Each school is assigned a named contact who will be knowledgeable in the application of schools terms and conditions and the service needs of schools, and will understand the unique pay issues that arise from engaging staff in multiple employments. Service description Service description The service offered incorporates: Pre-employment checks including medical and Disclosure & Barring Service (DBS) (formerly the Criminal Records Bureau) clearance in line with statutory requirements. Where applicable, List 99 will be checked as part of the service. (If external verification is required as a separate identity check this can be provided but an additional charge will apply). Please note that the full cost incurred from the DBS will be passed on if option 5 is not taken up. Monthly gross to net calculations and payment for the different employment groups of staff covered by School Teachers Pay and Conditions, support staff who are covered by National Joint Council pay and conditions, and employed freelancers engaged on local rates of pay, taking account of pay awards, incremental progression, overtime and enhanced payments and unpaid leave, and with provision of a payslip to the school for each paid employee Payment of claims for mileage, subsistence and expenses for staff in accordance with the Dorset Travel Scheme and HMRC legislation, included with monthly pay. Payment of any such claims made by governors outside of payroll pay dates. Assessing entitlements to contractual and statutory sick, maternity, paternity and adoption pay and leave, including management of the interaction between contractual and statutory payments. The preparation of contracts of employment and variations of contract for permanent and temporary appointments and administration of staff contract termination process The application of all relevant PAYE legislation including the calculation of income tax, class 1 and class 1A National Insurance, employment status determinations, salary sacrifice arrangements for childcare and student loans Application of all other statutory additions and deductions affecting pay, including court orders, and of several voluntary deductions including trades union subscriptions, additional voluntary contributions, charity donations attracting tax relief to the Charities Aid Foundation and subscriptions to the health provider Simply Health. Passing on all statutory and voluntary deductions that have been made from pay to the relevant body on the due date in accordance with their instructions. Compliance with all HMRC reporting requirements for PAYE and benefits in kind including provision of information to employees via forms P60 and P11D when relevant The application of existing and new legislation issued by the Pensions Regulator, Teachers Pensions and the Local Government Pensions Scheme (LGPS) Compliance with the relevant statutory reporting requirements for pension schemes including all new opting decisions, changes to employments, members personal details and contributions made. This

2 includes forms TR6, TR8, TR17A and the Annual Service Return for Teachers Pensions, and an electronic data feed direct to the Dorset LGPS pensions system from the HR/Pay system Advice on and interpretation of terms and conditions of employment including advice on leave entitlement within term time only contracts, rates of pay and legislative changes affecting pay Assessment and payment of self-employed freelancers on a controlled basis either via payroll or outside of payroll depending on the employment status determination on production of an authorised invoice. Liaison with newly appointed Bursars and Secretaries on HR/Pay administration procedures Provision of information to and liaison with solicitors in respect of payroll disputes and third party accidents, including court appearance where necessary Recovery of overpayments when identified in accordance with the overpayments protocol Maintaining detailed records for individuals of amounts claimed and paid in compliance with audit requirements and the provisions of the Data Protection Act and the Freedom of Information Act The financial analysis of the cost of pay for the school, fed to the authority s finance systems Responding to queries from other bodies including the Department for Work & Pensions, Teachers Pensions, the Local Government Pensions Scheme administrators, HM Revenue & Customs, Office for National Statistics and auditors The maintenance and development of computer systems to meet legislative requirements including liaison with IT professionals, contingency planning and disaster recovery The use of the Authority s fully registered BACS bureau with direct electronic transmission of payment details from the authority s bank account Access to view pay data online using the DES Manager Self Service tool Arrangement of recruitment advertising including placing advertisements on dorsetforyou, and access to the authority s electronic application system Please note that purchasing this service does not give access to advice on the management of sickness absence, ill health cases, capability issues or other such casework, which is provided through the HR Employee Relations subscription. that the service level provision for cash funded schools who operate their own PAYE reference will vary for some of the above aspects. Further information can be provided on request or can be found in the Service Level Agreement. New this year The following new legislation is currently under analysis and will be incorporated into the standard service delivery for 2013/14: Auto Enrolment duties, as introduced by the Pensions Act 2008 in reforming workplace pension regulations, will come into effect for Dorset County Council staff in April This will require each contract of employment for existing staff to be assessed for pensions purposes at that time, and thereafter on a monthly basis. Those employments deemed to be of Eligible Jobholder status will then be automatically enrolled to the relevant pension scheme. Staff will need to be informed of any change in status, and will have the option to opt out of the pension scheme once enrolled. The NEST scheme (National Employment Savings Trust) will be available for workers who are unable to join the Local Government or the Teachers pensions scheme Real Time Information reporting to HM Revenue & Customs will be introduced for Dorset County Council staff during the spring of 2013, in order to assist with the assessment of benefit claims including the new Universal Credit. This legislation requires the employer to report earnings and

3 deductions breakdowns for all staff paid each month, on or before the pay date, via an electronic data file, under strict validation rules. The Criminal Records Bureau and the Independent Safeguarding Authority have already merged to become the Disclosure and Barring Service (DBS) and there are new requirements according to new definitions of regulated activity. In spring 2013, the registered body will no longer receive a copy of the DBS certificate but will be able to ask the DBS whether a certificate has been issued and whether it is clear. The Child Maintenance and Enforcement Commission has announced a new child maintenance scheme with new statutory requirements for the calculation and payment of Deductions of Earnings Orders relating to child maintenance. The Autumn statement from the government announced changes in statutory payment rates, NI thresholds, tax bands, tax allowances and the additional tax rate percentage with effect from 1 April 2013 and these will be applied as a matter of course. Pension scheme earnings bands and corresponding tiered contribution rates will be applied in April Teachers Pensions have advised changes to the format of the annual service return and were in consultation at the time of publication regarding further changes to the assessment of teachers contribution rates when a retrospective change in pay occurs. The outcome of any such consultation will be applied as necessary. We will implement the proposals under consideration to apply changes in respect of Teachers pay and conditions from September Responsibilities of the school Schools are required to operate within the provisions of pay legislation including the School Teachers Pay and Conditions document, all other pay and negotiating bodies requirements, tax, national insurance and pensions legislation, and following Dorset HR policies where adopted. Detailed service level obligations of the school can be found at the HR/Pay Services appendix, section 2. Benefits of the service We have an excellent understanding of the needs in Dorset and an in-depth knowledge of Dorset schools. We can ensure that the individual requirements of your school are met and unlike other providers we can provide a joined up service with other key Council services. Through economies of scale we are able to keep our prices low whilst still providing a high quality, efficient and effective service Schools have access to timely and accurate pay advice which helps minimise the impact of employment issues and get the best out of your staff. Performance Standards Issue of contracts within 8 weeks of receipt of correct notification to HR Processing of Disclosure and Barring Service (DBS) forms and List 99 checks DBS forms checked and sent to DBS within 24 hours of receipt from school. Direct access by telephone, , letter or in person (telephone calls responded to within 24 hours and s within 3 working days)

4 Website Contact Sheralyn Huntingford Head of Human Resources Alison Crockett Lead HR Manager Shared Services Pam Wilkinson HR Payroll Support Manager Hayley Stone Schools HR Officer Sue Honeysett HR Technical Support Manager Kim Revell Technical Support HR Officer

5 Appendix 1 HR/Pay Services Service Agreement Section 1 Obligations of the authority 1.1 HR/Pay as a Bureau Service This specification assumes that the payroll will be run on a bureau basis using the Dorset County Council integrated HR/Pay/Finance System (DES) under Dorset County Council s PAYE scheme reference. Schools HR/Pay support staff will action payroll payments via Bank Automated Clearing System (BACS) transmissions from the Authority s Salaries Bank Account. Reference should also be made to the Standard Operating Procedures which are included at Section Staffing The HR/Pay Services to be provided under this specification will be managed on a day to day basis by the HR Payroll Support Manager and the HR Technical Support Manager within the HR Shared Services team in Human Resources. The day to day administration of the HR/Pay duties will be through a designated HR/Pay assistant, in liaison with the staff of the school. Some staff are qualified to the Institute of Payroll Professionals (IPP) Foundation level, some to Diploma level and a number of staff hold the Certificate in Personnel Practice. Normal office hours are 37 hours per week, Monday to Friday. The core office times are 8.40am until 5.20pm Monday to Thursday, and 8.40am to 4pm Friday. In the case of any absences, cover will be provided to maintain service provision. It is assumed that the school will have cover for their staff in the event of staff absences. It is our policy to continue to maintain a good working relationship with the school and to be supportive to senior management. All HR/Pay staff are aware of the need for confidentiality in HR/Pay work and the high standard of integrity expected of them. 1.3 Future Service Developments HR Shared Services will use its best endeavours to keep the school regularly informed of any changes to legislation or working practices that are necessary to the smooth and efficient working of the service. 1.4 Secure Systems The IT systems operated by HR Shared Services are through Dorset Information Communication Technology Services (ICT), who maintain a number of application and database servers including appropriate back up facilities. Dorset ICT Services are continuously improving the resilience of their IT equipment to minimise any system down time. Service continuity facilities are in place to cover all likely contingencies and the arrangements in the event of a major disaster are constantly being reviewed. Registration under the Data Protection Act, which is strictly adhered to, ensures security of data. HR Shared Services is an accredited BACS Approved Bureau and fully meets the strict security guidelines imposed by BACS Payment Schemes Limited.

6 1.5 Customer Care The Schools HR/Pay services will be operated as a distinct unit. In this way staff trained specifically with the schools needs in mind will deliver the day to day services. Any enquiries or concerns regarding the provision of service should be addressed to the HR Payroll Support Manager. Advice to newly appointed Bursars and Secretaries on HR/Pay administration procedures will be provided if/when required. 1.6 Other Considerations The detailed timetable for the payment of staff and the provision of management information at the appropriate time is shown in Section 4. It is assumed that statutory payments (such as tax, pension and National Insurance) will be initiated by HR Shared Services on the school s behalf and be paid from the Authority s Account. The same will apply for other deductions from salary, which are paid over to other organisations (e.g. charitable giving). All new employees are paid on a monthly basis via BACS transfer to streamline and economise on the cost of the service. Cheque payment facilities are available on a strictly limited basis. 1.7 Payments to Employees Employees will be paid monthly on the last working day of the month and will receive payment direct into their bank accounts by BACS credit in accordance with the agreed timetable. Advance payments will be available on a strictly limited basis and this will be the exception. Due to the high charge of processing advance payments, we reserve the right to levy an additional charge for each advance payment requested by the school to cover the cost. If an advance payment is required to correct an error that has been made by HR Shared Services then no charge will be made to the school. Pay advice slips will be inserted into envelopes and sent to the schools for the normal pay run, for distribution of payment. 1.9 Transfer of Funds A BACS transmission will be produced, based on the figures calculated for the school s payroll, which will enable amounts to be transferred directly from the Salaries Bank Account directly to the school employees accounts on the due day Obligations of HR/Pay Administration HR Shared Services will supply the school with a schedule of the latest dates by which information concerning changes in the pay of individual employees must be submitted to guarantee implementation of those changes in the next payroll run as shown in section 4. HR Shared Services will implement, on behalf of the school, all changes in taxation under PAYE, all changes to employee s and employer s national insurance and pension contributions. Guidance is available on the arrangements for the notification of Statutory Sick Pay. It is important that notification is received from the school s staff by the month following the first day of sickness in order to prevent overpayments. Any overpayments (or underpayments) made / caused by Schools HR/Pay support staff will be reported to the school staff for their attention and instruction. The HR pay system will be corrected to ensure the individual s cumulatives are correct.

7 DES holds a number of reports that have been pre-written for the area of HR/Pay. These can be run at any time by the person who has been nominated to have the relevant access. HR Shared Services will arrange monthly payments to be made from the Authority s Salaries Bank Account to HM Revenue and Customs, AVC providers, GAYE, Trade Unions, other Local Authorities (attachment of earning etc) Courts (Court Orders) and other voluntary organisations. The balances held for PAYE, NI, SSP, SMP SAP and SPP will be reconciled on a monthly basis and at the year-end as necessary. Monthly and end of year statutory returns will be made to HM Revenue and Customs, the Local Government Pensions Scheme and Teachers Pensions as required. Balancing of the contributions payable to these bodies and all other third parties will be the responsibility of Shared Services. Documents will be retained as required to comply with audit and HM Revenue and Customs requirements. HR Shared Services will administer the processing and input of claims for overtime / additional hours. HR Shared Services shall make timely arrangements each year for the production of P60 s which, according to circumstances, will accompany pay advice slips or will be separately inserted into envelopes. Travel services are also provided to qualifying staff and governors within Dorset County Council. Any travel payments or expenses will normally be dealt with via HR Shared Services in accordance with the Dorset Travel Scheme and HMRC legislation. Any information required in relation to benefits in kind, which have been paid outside of Dorset County Council s central systems, must be notified to HR Shared Services in advance of the calculation, preparation and completion of P11D forms each year. Section 2 HR/Pay Tasks Obligations of the school 2.1 The following payroll tasks should be carried out by the school or where indicated its HR Services provider The school is responsible for the salary assessment of all members of staff and providing notification of details of starters, leavers and changes to staff salaries on standard forms or electronically via the integrated Payroll/HR system. The school is responsible for the distribution of all contracts of employment to employees and all notices of termination, redundancy or variations in their conditions of service The school should approve and initiate the payment of incentive allowances or discretionary payments to the school staff, or any other allowance or supplement to be paid to an individual member of staff, or any other deduction from pay for whatever reason. These notifications must be submitted in writing to the appropriate school s HR/Pay member of staff by the appropriate date in the schedule supplied to the school The school is responsible for forwarding all authorised travel and expense related payments to be paid via payroll by the appropriate date in the schedule supplied to the school The school should ensure that any notification relating to the payment of staff is sent to the School s HR/Pay team by the deadline provided The school should provide to HR Shared Services detailed records for each employee for P11D purposes. Section 3 Standard Operating Procedures The following are the standard operating procedures which will be adhered to by HR Shared Services in the provision of the HR/Pay service.

8 3.1 Authorisation of Data The following personnel are authorised to approve data in respect of HR/Pay records and transactions (listed in order of usual level of authorising activity): Headteacher School staff authorised to do so by the Headteacher With the exception of statutory requirements and employees personal requests, HR Shared Services will only accept and process data that has written authority from a designated officer. HR Shared Services will notify the school immediately in the event of any unauthorised data being presented for processing. 3.2 Monitoring of Transactions Details will be notified by HR Shared Services to the school if any payment is made outside of the normal monthly payroll run where a cost will be incurred. This notification will be made prior to any payment. 3.3 General Working Practices The general working practices reflect the relationship between HR Shared Services and the school and the need for appropriate authorisation from the school for all transactions undertaken on its behalf by HR Shared Services. 3.4 Records and Data HR Shared Services will ensure that access to all data held on behalf of the school is strictly controlled and is maintained in accordance with the appropriate Data Protection legislation. Details of all parties with authority to access the data will be maintained for inspection by the school if requested. With the exception of statutory requirements, any request for access to data must be approved in writing by an authorised officer in accordance with paragraph 3.1 above. Any unauthorised attempts to access data will be reported immediately to the school. 3.5 BACS Bureau Dorset County Council (DCC) operates as a Bank Automated Clearing System (BACS) Bureau. This process will be subject to appropriate security provisions including a contingency service wherever practicable, and regular BACS audits. 3.6 Variations to Standard Operating Procedures Any variation to the procedures contained within this document must be approved in writing in accordance with the provisions contained in paragraph 3.1. Section 4 - Target Timetable 2013/2014 Trying to strike the right balance for close down dates on payrolls is always difficult. To give an idea of what is involved, an average monthly payment cycle is set out below to illustrate the sequence of events which has to take place to ensure that all staff are paid on time on pay day. Working back from pay day a normal cycle for June would be: Pay day 28 June - BACS transmission day to ensure salary in bank on 28 June will be 25 June - Lockdown will be 24 to 26 June - Partial Lockdown 21 June - Time for payroll staff to work on amendments 11 to 21 June The sequence of events necessary for the successful production of the payroll are not immediately apparent unless you are involved in its preparation. As can be seen from the above, although there appears to be sufficient time in the month much of the time is allocated to the tasks involved with payroll production. The above illustration reflects a normal month. However, the pattern can easily be affected by pay awards, early close down due to public holidays and other major legislative changes that have to be implemented, such as taxation amendments at the start of the financial year.

9 Unfortunately, the amount of time required to produce the payroll means that the school is given a relatively early close down date. Where possible, changes will be accepted and processed after this date but this cannot be guaranteed. The indicative timetable for the monthly payroll production (excluding supply teachers) for 2013/2014 which will be sent out at the beginning of April will be: - Month Deadline for receipt of information by HR/Pay Pay Day April 11 th 30th May 13 th 31st June 11 th 28th July 12 th 31st August 12 th 30th September 11 th 30th October 14 th 31st November 12 th 29th December 9 th 31st January 14 th 31st February 11 th 28th March 12 th 31st The above timetable can only be used as an indication of target dates. It is necessary to reserve the right to alter dates to allow for events such as pay awards, legislative changes and other circumstances that will increase the workload of payroll staff and have an impact on the time needed to produce the payroll. Section 5 Complaints Procedure Our focus on quality service provision is paramount, and we regularly review our processes to help to ensure that we provide high levels of customer care and satisfaction. However, on rare occasions discrepancies may arise whereby you feel that the service is not as expected. Should you feel that you need to make a complaint, we ask that concerns are highlighted to us at the earliest opportunity in order that the issue can be addressed at an early stage. Any expression of dissatisfaction felt to be minor should, in the first instance, be referred to your assigned HR Pay contact. If the issue remains unresolved or is felt to be of higher importance you are encouraged to request the involvement of the Schools HR Officer. If you feel that the matter has not been dealt with satisfactorily following this, please contact the HR Payroll Support Manager in the first instance, and then the HR Lead Manager Shared Services. All of the relevant contact details are published in the brochure. Should you feel that there has been an issue of maladministration and require an impartial or formal response to your complaint, Dorset County Council operates a whole authority complaints procedure which can be accessed via the Dorset For You website ( or by telephone to our complaints line Ultimately, if you feel that your complaint has not been satisfactorily resolved, you are entitled to ask the Local Government Ombudsman or the Information Commissioner to investigate your complaint. Contact details can be found on the above website.

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