Taxes Office Employers Combined Returns website Help Guide

Transcription

1 Taxes Office Employers Combined Returns website Help Guide This is the website landing page. You are presented with 3 options which are explained below. Log In - This button takes you to the log in screen for registered users Register - This will enable you to use the full facilities of the website Submit - This button opens up more options on the page allowing you to submit returns without registering If this is your first return using the website it is suggested that you complete the return as a guest user, allowing you meet submission deadlines. Then use the register button on the lodgement reference page to register to use the full facilities of the website. If you are already a registered user go to the log in page and enter your User Id (11 numbers long) and your password. Once logged in you can select which return(s) you want to submit for each month. The guide has 3 sections, based on the three buttons above and 1 section on completing and submitting returns.

2 Register Button When you select the register button in the landing page you will see this screen. If you select begin registration on the login page you will go to an interim page where you need to select Employer registration and then the next button to take you to the screen shown below. You need to make sure this box has a tick to activate the 'Next' button The 'Home' button takes you to the log in page The 'Next' button is only active when the confirm box has a tick in it. When selected it will take you to the employer details page

3 This next page is where you enter the employer details and set your password. Employer name is entered here Enter the employer Tax Reference and Tax business reference here Two lines of address are mandatory together with a postcode Individual account details, Name, Position and address - this will be used to send the user id and any other information such as lodgement references to the user Set your password - see the info icon for restrictions Takes you back to the Terms and Conditions page Takes you to the registration confirmation page

4 The registration confirmation page Allows you to print a copy of this page - issues have been noted with some older browser versions Takes you back to log in/out page Once you arrive on this page the first part of the registration process is complete. A copy of the user id number will have been ed to you and you can log in and out of the website as you wish. The second part of the registration is to attach the Employer returns service to you user account. This needs to be manually approved by the Taxes Office. Once this has been done an activation pin number will be posted to you at the address the Taxes Office holds for the employer. This second part can take up to working 10 days.

5 Once you have received the activation pin letter log back into the website. You should see this screen. If you see a message indicating the request is still being processed try again the following day, but if you then still see the same message contact the Taxes Office Helpdesk. This is the employer name Select this button to go to the activation page Activation Page This button takes you back to the services available page Enter your pin number here - it should be 10 characters long, a mix of upper case letters and numbers Once you have entered the pin number select this button to activate the Employer Return Service

6 Should you enter a pin number that is not associated with the user id you will see this screen. Double check you have entered the activation pin correctly and try again. If you still see this message after that contact the Taxes Office Helpdesk. On successful activation you will see this screen. Select the next button to go to the return selection page and start completing returns

7 Log In Button If you select the 'Log In' button you arrive on this page. Enter your user id (11 numbers long, do not include spaces) and password here This link will take you to a brief overview of the employer return website This button will take you to the registration pages Select the login button to get to the activation page or return selection page if already activated Select this button to go back to the landing / front page of the website Select this button to take you to the password reset page Select this link to take you to the contact details page

8 Reset Password Enter your User ID here This is a 'captcha' code which is used to verify manual text input Enter the captcha code here Select for new captcha code Select this button to return to the log in page Select this button to initiate the password reset If you need to reset your password complete the above page and select submit. A link to reset your password will be sent to the address we have for you. This link will take you to a page where you can reset your password securely. This link will only be active for a limited time.

9 After you have logged click on access services and you should see this page Once data for a return has been saved or submitted the view report button is shown allowing access toa report for that return ITIS Return Selector Year and month Selection Manpower Return Selector Social Security Return Selector Takes you back to access services page Shows previously saved returns - select sets the return selection to the saved settings. Note lodgement references indicate submitted returns Selector to show either current employees or all current and previous employees When you have selected at least one of the available return types the next button becomes active. Select this button to go to the return data entry page. ITIS returns are available every month of the year. Social Security returns are available on the last month of the quarter. Manpower returns are available only for the months June and December. If you select all the available return types for the month, you will enter the data for the selected returns on one page and submit all the returns alongside each other.

10 Submit Button When you select the submit button the page expands to show additional input boxes. This allows you to submit a return without registering to use the full facilities of the website. Select this button to extend the page to reveal the return selection section Enter your employer tax reference and business reference here - these can be found on your ITIS documentation from the Taxes Office

11 Return Selection page Year and month selection ITIS Return Selector Manpower Return Selector Social Security Return Selector - not available when submitting returns as a guest user ITIS returns are available every month of the year. Manpower returns are available only in June and December. If you select both return types, when available, you will enter the data for both returns on one page and submit the two returns alongside each other. Social Security returns cannot be made as they require three separate months of data which are not available as a guest user. If you want to complete Social Security returns you will need to register to use the full features of the website. When you have selected at least one of the available return types the next button becomes active. Select this button to go to the return data entry page. Once the returns you want to complete are selected click next to take you to the data entry page for the return.

12 Return Data Entry Page After selecting the Next button on the return selection page of either the Log In Button route or the Submit Button route you arrive at the data entry page for the selected return(s). This section of the guide will show you the available elements of each return and indicate where you will see them. Employer Section Employer Tax and Social Security References Takes you back to the return selection page Title bar confirms Tax Reference/Business reference Year and Month and selected return types Social Security employer reference - only required in the quarter end month if you are submitting a Social Security return through the website (registered users only). Not present if you are only submitting a Manpower return Pre populated Employer Tax and Business references as set at registration or on guest user start page (Submit Button on landing page)

13 Employer Information Enter the Undertaking reference here (for manpower return) absent if manpower return not selected Indicators for manpower return if the undertaking has a new owner or name. Present only if manpower return selected For manpower return only. Use this button to add an additional undertaking reference and name/address block if needed. Absent if manpower return not selected Employer name and address block - required for all return types Allows you to change address presented as a registered user Submitter Information (for Manpower Return - not present if manpower return not selected) Submitter name Contact telephone number for submitter Contact address for submitter

14 Employer Return Information Non editable entries indicate the year month and where applicable the quarter of the return Allows the selection of a nil manpower return If nil manpower return selected this box must have an entry from the dropdown picker and if other a reason must be entered manually Indicates whether a return has already been submitted from the website allows you to change the return version type, if needed Allows you to select a nil return for social security, if appropriate Allows a nil ITIS return to be submitted - no wage or tax deducted for the month Employee Section Employee Details Opens a new, blank employee form Returns the current new employee entry to blank if not saved Employee navigation buttons and indicator of how many employees have been saved and are available to edit Deletes an employee record (only if an employee has not been included in a submitted return Allows selection of a particular employee by name Saves the currently selected employee data Use the single chevrons to move through the employee list one at a time in either direction. The double chevron takes you to either the first or last employee

15 Employee References Enter employee social security number here The payroll number is for your own use, you can add your reference for the employee here Employee tax reference must be entered for an ITIS/Social Security return. It is not needed for a manpower only return and is not displayed for that return This is pre-populated to confirm resident in Jersey - for social security return, you need to change as necessary. Not displayed for a manpower return Employee Personal Information Employee name block - this is the only part of this section presented if just a manpower return is selected Employment type - for ITIS/Social Security return. If exempt sub contractor selected you must add their exemption certificate number Employee address block Add husband's name if appropriate You can add notes regarding the employee here

16 Employee Manpower Information This section will only be on the page if manpower return has been selected. If you are unsure about how to complete status buttons in this section you will need to review the apendix at the end on this guide or contact the Population Office. If you have entered more than one undertaking reference in the employer section you need to select the undertaking reference that the employee should be linked to Select the contract type, either permanent or non-permanent, for the employee Tick this box if the employee has exempt status for the manpower return Select the employment status of the employee Select the entitled to work status for the employee Employee Financial Details This section will only be presented if ITIS or Social Security returns are selected. All boxes must have a number in them, apart from the more than one rate tick box. The amount of tax deducted from the employee gross pay will be auto calculated change if necessary Enter the effective rate used for the month or, if more than one, the last rate used Enter the gross pay for the month Select only if more than one effective rate used in the month Enter the amount of employee payments into an approved employer pension scheme default is 0 This will auto fill with the monthly gross pay figure, change if needed to the correct amount of gross pay that will be declared to social security for this month in the end of quarter return

17 Employee Employment Periods Use this section to add start and leaving dates for employees. If an employee does not have a leaving date entered they will continue to be in the returns being submitted even if they are no longer employees. Select these boxes to add start and/or end dates - a calendar picker will allow easy selection of the date After picking the date you need to select the add date button to register the date for the employee Rest clears a date selection that has not been added Select this button to open a fresh blank employee form to add another employee Select this button to save the currently selected employee data Changing entered periods Select here to allow the date to be changed Allows the removal of the date Once you have revised the date select update to confirm the change Select cancel if you do not need to make a change

18 Save and Submit the return Takes you back to the return selection page Message on successful save Saves the return and employee data Select this button to go to the submission page when all employees have been entered

19 Submission Page This details the return(s) that are being submitted Takes you back to the return data entry page In order to submit the return this box needs to be ticked to provide the confirmation required This allows you to view what will be in the return being submitted. There will be one, separate, report for each return being submitted Once the confirmation has been ticked this button becomes active. Select it to submit the return(s)

20 Return Submission Success page Details the lodgement references allocated to each return successfully submitted - make a note of these as if you leave this page (by selecting any other buttons) you will not be able to see this page again. Allows you to select a report for a specific undertaking reference if more than 1 reference is available Allows you to view the report for the submitted return Allows you to print a copy of this page Takes you back to the return selection page

21 If you submitted the return(s) as a guest user you will see this section on the submission success page. Select this button if you want to go straight to the registration pages (if you do not then the return data you have entered will not be accessible again). This will copy some of the data you have already entered. Also, this will link the returns just submitted to the registration so that when you log in and enter the pin number to activate the employer returns service you will be able to see, edit and resubmit (if required) those returns. Report Navigation When you select any of the various report buttons (can be found on return selection page once a return has been saved, on the submission page - to check the return before submission and on the submission success page). The controls for the reports are Allows you to locate a specific employee in the report Allows navigation between pages of the report and indicates which page you are viewing Scale indicator adjustment Export the return to print or save as a pdf file or an excel copy of the on screen report

22 Appendix Part 1 Who needs to be included in a return ITIS Return Who has to pay ITIS? The Income Tax Instalment System (ITIS) applies to all: full time employees part-time employees contract employees Jersey resident directors who get paid a salary or fees ITIS also applies to all labour-only subcontractors, in the building and construction industry, who do not have an exemption certificate from the taxes office which are only issued if they have a good tax compliance record. Registering as an employer Any company, individual, sole trader, partnership, trust or charity who has employees and/or Jersey resident directors must register with the Income Tax Office. If not already registered it is necessary to write in to the office with the following information: name of the employer/company how many employees/office holders they have; address to correspond with; whether they wish to complete their ITIS returns electronically or on paper and in the case of a company: whether the company trades in Jersey whether the company has a permanent establishment in Jersey. Non-resident employers employing people locally are also included in the income tax instalment system. Once this information has been submitted, then the taxes office can create the relevant records to register their status as an employer. It may also be necessary to request further information to ascertain any other tax implications ie Corporate and Goods and Services Tax (GST). New businesses who take on employees and who fail to register with the taxes office within one month, are subject to a penalty regime.

23 What does the employer have to do? On each pay day, employers have to deduct the correct tax rate, in accordance with the valid effective rate notice issued to each employee or director. In the absence of a valid effective rate notice, the employer must deduct the default rate of 20%. In the case of labour only sub contractors (in the building and construction industry) a rate of 20% should be deducted unless the main contractor has been given an exemption card or good compliance letter by the labour only sub contractor. I employ students / young people - do I have to deduct ITIS from their salaries? The only exception is that no ITIS deductions are required from employees who are under 17 years old on the 31 December in the year. (Please note that even though ITIS deductions are not required from these employees, an individual of any age is liable to income tax if their income exceeds the tax threshold for the relevant year.) However, ITIS deductions are required in the year the individual becomes 17, from the start of that year. ITIS and the building and construction industry Effective rates for employees Effective rate notices for employees are issued annually in early December for the calendar year ahead. It can be subsequently amended where the taxes office is satisfied that there has been a significant change in circumstances or the tax liability has been ascertained (following receipt of the employee s tax return). The employee must give his most up to date rate to his employer. When a change of rate is made it will be issued to the individual directly. Where appropriate it may also be issued directly to the employer. There are also penalties for any employer who fails to deduct the appropriate rate of tax from any individual or labour only sub-contractor. What if my employee has not provided a rate or his rate has expired? The default rate of 20% applies to new taxpayers who do not have an effective rate of tax ie new residents and school leavers. It is therefore important that all such taxpayers call in promptly to the taxes office outlining their personal circumstances and expected income, so a calculated effective rate can be issued as soon as possible. The default rate should also be taken if an individual no longer has a valid effective rate or if the employer has not been provided with a rate from either the employee or this office.

24 Employees whose ITIS rate is more than 20% The effective rate of tax can be increased for those with tax arrears. A statutory maximum effective rate of tax is set out in law as follows: 1 year 25% 2 years 30% 3 years or more 35% Some taxpayers also voluntarily elect to pay a higher percentage as they wish to pay the tax on other sources of income through the ITIS contributions or pay extra, for example, prior to retiring. Sending the ITIS information and payment Employers and main contractors must submit monthly returns for each employee / labour only subcontractor confirming: the full name address tax reference social security number gross pay most recent ITIS percentage applied tax deducted Employers must include details of all employees including those who are on a zero percent (0%) rate. The employer must also provide each employee with an annual summary, within 30 days of the year end, of remuneration and tax deducted. The ITIS returns and payment are required within 15 days of the end of every month e.g. ITIS return and payment for January are required by 15 February. Methods of paying ITIS How do I send the information? You can use the Taxes Office Employers Combined Returns website which allows you to submit ITIS returns, Social Security Contribution returns and Manpower returns. You can download a software solution from us that allows you to submit monthly ITIS returns, annual benefit in kind (BIK) returns quarterly social security information and shortly the new manpower return electronically. This is suitable for all employers but requires a Microsoft based PC to run on.

25 Electronic submission of employer returns What happens if I do not submit the ITIS return by the required date? If an employer does not submit an ITIS return as required, the taxes office may send an estimated bill. This will be based on the previous months ITIS returns if we have received them, otherwise on best available information. Estimated ITIS notices are due and payable immediately. You have 15 days to appeal against the notice. However, in order to settle an appeal and replace the estimate with the correct sum, the relevant ITIS return must be submitted with any additional payment that may be due over and above the appealed balance already paid. If you have paid the balance on the estimate and the amount due on the return is lower, the difference will be held as a credit against the next ITIS return. If any employer continually fails to submit their employees' information they can be taken to court for non-submission. There are severe penalties that the court can then apply in addition to enforcing the submission of the data. What does the taxes office do once it receives the information? Once the employers electronic submission has been received there is an automatic transfer of all the employees tax deductions to their individual ledger account, thereby immediately updating their tax records. The taxes office cannot access any social security information that is submitted we simply act as a postbox and forward the data. Any paper returns received from employers are data captured and verified and then dealt with in the same manner. Failure to comply with the submission of information and payments will affect the individual employees and may result in the issue of inflated effective rates or increased shortfalls in payment of their tax liability.

26 Part 2 Social Security Contribution Return As an employer you must pay the primary and secondary contributions for all employees who: work eight or more hours a week have a registration card marked FR1 on the back are aged between the compulsory school leaving age and 65 years old contributions are due from the first month in which a person reaches compulsory school leaving age until the end of the month is which the person reaches 65 are labour only sub-contractors Some employees may have elected not to pay primary contributions, they will be in possession of a card marked XR1. What is a contribution quarter? A contribution quarter is a three month period. Contribution schedules and payments are collected for the three month period at the end of each quarter. The quarters are: Contribution quarter table A quarter B quarter C quarter D quarter January, February, March April, May, June July, August, September October, November, December Submitting your schedule You can submit the schedule through the by entering employee data on the Taxes Office Employer Combined Returns website ( the stand alone Taxes Office Employers Returns System or you payroll system (if it has that facility).

27 When does the schedule have to be returned? Schedules must be received on or before the 15th day of the month following the end of a quarter. Quarter Months Schedule due date A January, February, March 15 April B April, May, June 15 July C July, August, September 15 October D October, November, December 15 January Gross earnings What are gross earnings? Gross earnings are earnings paid to an employee before any deductions are made. A Social Security pay period is a calendar month. The contribution month to which any payment belongs is fixed by the date on which it is paid (or would normally be paid) regardless of when it was earned. See for further information. How to show holiday pay on the schedule Many employers pay their employees holiday pay before the normal pay day. Example: a weekly paid employee is taking two weeks holiday at the beginning of August. Their wages are 250 per week. You pay them 750 wages in the last week of July - the normal week s wage plus two weeks for the August holidays. Month July August 500 Actual amount paid (two weeks holiday pay)

28 In this example two weeks wages would normally have been paid in August. So you have to treat those two weeks salary as if you had actually paid them in August. You should complete the schedule as follows: Month July 1000 August 1000 Amount to be shown on the schedule You deduct social security contributions as if the wages were paid at the normal time. Employees who receive pay after they have left your employment Any wages paid to an employee after they have left your employment must be treated as if it had been paid in the month they left. If the payment is one that should be included in gross earnings, social security contributions are due and payable. If the contribution schedule has not been returned, simply add the extra pay to that already paid and show the total on the schedule. Please note: if the total earnings are above the monthly earnings ceiling, only deduct contributions up to the ceiling. If the contribution schedule has already been returned, please contact the Contributions and Enforcement Zone and ask for a supplementary schedule for the month of termination. Add the extra pay onto the earnings shown on the original schedule. If the total is more than the monthly earnings ceiling, only deduct contributions up to the ceiling. On the supplementary schedule show the monthly earnings ceiling less the earnings shown on the original schedule. For example, additional earnings for March 2013: Original earnings ( ) 3000 (contributions paid) Additional pay ( ) 900 Total pay ( ) monthly earnings ceiling ( ) 3834 Less original earnings ( ) 3000 Contributions due on earnings ( ) 900

29 In this example you should show additional earnings of 900 on the supplementary schedule. However, contributions should only be deducted from your employee, up to the SEL, in this example 834. As the employer you will be required to pay 2% the earnings above the monthly earnings ceiling, in this example you will pay 2% on 66. If you are in any doubt whether a particular remuneration should be included in the gross earnings please contact the Contributions and Enforcement Zone. How to show Social Security benefit deductions on the schedule This only applies to employers who: continue to pay the normal wage during illness and the employee gives the employer the value of the Social Security benefit they receive. It is very important to adjust the wages on the schedule in the month the employee was ill. For each day that we pay benefit a credit is put on the employee s account. These credits protect the employee s Social Security record against the loss of earnings. It can be difficult to calculate the correct earnings to show on the schedule. There is usually a delay in the employee being ill and you being given the Social Security Benefit. It may be necessary for you to adjust the contributions deducted in a month after the illness. Example An employee is ill for ten days in August. They give you the value of the Social Security benefit in September. Their normal wages are 1500 per month and the value of the benefit is Month Wages ( ) Social Security ( ) July August 1500 minus September plus How the wages should be shown on the schedule ( ) In reality you will have adjusted the employee s wages and contributions in September. But on the schedule you must show the adjustment as if it had been made in the month of illness. Do not worry that your wage records will be different from the schedule. Simply make a note in your records that this is due to the Social Security Benefit. Unusual pay practices that reduce or avoid contributions Employees are usually paid on a weekly or monthly basis, however there may be occasions when this practice is not followed.

30 We can recalculate the contributions due for all employees back to when the unusual pay practice started. The contributions will be calculated as if a normal pay practice had been followed. Calculation of contributions Calculating the correct deduction We have provided an online contributions calculator to assist employers in calculating an employee's correct contribution. Contributions calculator You may use your own accounting machinery instead. To understand how contributions are calculated please see below. The contribution month The contribution month to which any payment belongs is fixed by the date on which it is paid (or would normally be paid) regardless of when it was earned. Important - when a payment of wages (normally made in one month) is paid in a different month, it should be treated as being paid at the normal time. For example, teachers may be paid their August wages at the end of the school year in July. The wages paid early should be shown on the schedule as if they were actually paid in August. Weekly paid employees Social security contributions are deducted in 25p steps for weekly paid employees. This means that you should round the earnings down to 0.00, 0.25, 0.50 or 0.75 before calculating the contributions. For example: Earnings Rounded down to Keeping a running total of weekly paid wages It is important to keep a running total of wages paid to an employee in a calendar month. Contributions are only payable on earnings up to the monthly earnings ceiling. If a weekly paid employee receives earnings of more than the monthly earnings ceiling the contributions

31 must be adjusted. In this example it is assumed that the monthly earnings ceiling is 3,686. Contribution month one Week number Earnings this week Earnings this month In week five the aggregated earnings for the month exceed the monthly earnings ceiling by 164. ( = 164) In that week contributions are only required for 606 ( = 606). The rest of the earnings must be disregarded in the contribution calculation. Monthly paid employees Social security contributions are deducted on round pounds for monthly paid employees. Always round the earnings down to the nearest whole pound before calculating the contributions. Other pay periods Four-weekly paid employees Normally there is one four-weekly payment in each month and each payment can be treated as a monthly payment. Occasionally 2 four-weekly payments fall in the same month. These payments should be added together to give the monthly payment. Care should be taken to ensure that contributions are not deducted on earnings above the monthly earnings ceiling. Please read the section on the aggregation of earnings for weekly paid employees. Fortnightly Usually 2, and sometimes 3, fortnightly payments will fall in one month. These payments must be aggregated in a similar manner to weekly paid earnings. Daily As long as the employee works eight hours or more in a week contributions are due and payable. These earnings must be aggregated in a similar manner to weekly paid earnings.

32 Earnings period in excess of one month If you normally pay wages or salary at intervals longer than one month you should contact the Contributions and Enforcement Zone. How to fill in the quarterly schedule Step 1. write the social security number and name of all your employees on the schedule. J Y A G R A N T Please use black ball point to fill in the schedule. Write each digit or letter in a separate box as shown. Please note: the clearer you complete the schedule the less chance there will be for error. Step 2. when you have worked out the earnings to be shown on the schedule for a particular month write them on the schedule. Enter only whole pounds - do not include pence or the sign. Write each number in a separate box. Example: enter as: Step 3: check list - before returning the schedule to us please check that: all your employees, working eight hours or more per week, are shown on the schedule the correct earnings are entered for each employee employees who have joined you during the quarter have a 'start' date entered employees who left you during the quarter have a 'left' date entered if you know that an employee has left the Island that an 'X' is shown in the appropriate column if any of your employer details have changed, enter the new details on the back of the schedule you have filled in the Employer s Declaration you have signed and dated the declaration

33 Please note: remember to photocopy the schedule if you want to keep a copy. Step 4: send the schedule to us, without payment. Please note: schedules must be received by the department on or before the 15th day of the month following the end of a quarter. Payment of contributions As soon as your schedule is fully processed a statement of account will be sent to you. Payment is due on demand, but we give seven working days for you to pay the account. If you cannot reconcile the contributions requested against your own accounts please contact us. We will send you a break down of your schedule showing the contributions that have been calculated for each employee. Payment can be made by BACS paid directly into our bank account, cheque or cash. If you wish to pay by BACS please contact the Contributions and Enforcement section and they will explain what you need to do. Employers with 80 staff or more If you employ 80 staff or more you are required to pay contributions on a monthly basis. Payment is due by the 15th day of the month directly following the month that the contribution has been calculated for. For example: Month January Payment due by 15 February Please note: do not send the schedule in every month. It should be returned at the end of the quarter in the usual way. Changes in employees circumstances What to do if: An employee reaches the age of 16 Contribution liability begins on the first of the month in which an individual reaches the age of 16. If the individual is working eight hours a week or more, you are liable to pay contributions for them.

34 An employee leaves employment at pension age Give the social security card, if held by you, back to the employee. Enter the date the employee left your employment in the 'Left' column on the schedule. An employee continues to work past pension age An employees liability to pay contributions ends the month after they reach pension age and you must stop deducting 6% from their wages. An employers liability continues as long at the employee is working for them. This means you must continue to declare them on the schedule and pay secondary contributions of 6.5%. The employee must exchange their Social Security or registration card for a new registration card. An employee dies Contributions are required for all wages paid up to and including the date of death. Wages paid after the death should be disregarded in calculating the contribution liability. An employee chooses not to pay contributions Some people can choose not to pay contributions. The employee must exchange all their current cards, marked FR1, for a new registration card marked XR1 when the election is granted. They will ask you for their social security card if you still hold it. Continue to deduct primary contributions from their wages until they show you a new registration card marked XR1. A photocopy of the card should be retained for your records together with a copy of their photographic ID. Please note: never stop deducting contributions on the word of the employee. The registration card is your only authority. An employee chooses to start paying contributions An employee who has made an election not to pay may cancel it at any time. They must exchange all their social security or registration cards marked XR1 for a registration card marked FR1. Do not deduct primary contributions from their wages until they give you the registration card. The registration card is your only authority. An employee with a married woman s election (red/xr1 card) divorces

35 A married woman who has a non-paying election becomes liable to pay contributions from the 1st of the month following the date of her decree absolute. The employee must tell us that she is divorced and the date of the decree absolute. She must also exchange her current cards for a new registration card marked FR1. A photocopy of the card should be retained for your records together with a copy of their photographic ID. Making mistakes on the schedule What if I detect an error before the schedule is returned? You should cross out the whole line and rewrite it on a new line. What if I detect an error after the schedule is returned? You should write to the Contributions and Enforcement Zone telling us the earnings that should have been shown on the schedule. What if I make a mistake in the payment of gross earnings? If you pay an employee an incorrect amount of earnings in one month and adjust the earnings in the following month you must show the earnings that should have been paid on the schedule. What if I miss an employee off? If you have missed an employee off completely or have not included some of their wages we will send you a supplementary schedule. All you have to show on this schedule are the items that you have missed off the original schedule.

36 Part 3 Manpower Return With effect from 1st July 2013 the Control of Housing and Work Law 2012 came into force. This new law introduces updates that allow for the streamlining of processes and the improved effectiveness of Immigration, Business Licensing and the Manpower Return. As consequence of this law change a revised Manpower Return process will come into force with effect on 1 January This document describes how users must complete the 2014 Manpower Return for each Residential Status and contract type. Return Rules 1. Residential Statuses Residential status recorded on the Manpower Return must be true status at time of reporting and not necessarily what is on a person s card given that changes may occur during a reporting period. Entitled Someone who has lived in Jersey for 10 aggregated years if they re Jersey born or at least 10 continuous years if they re non-jersey born. There are some complexities around this so if you are unsure as to a person s status then you should refer them to the Population Office for clarification. Such an person can work anywhere and an employer does not need a license to employ such an individual. Under prior regulations, this person would have been considered as Locally Qualified. Entitled to Work Someone who has lived in Jersey for five consecutive years immediately before the date the card is issued, or is married to someone who is 'entitled', 'licensed', or 'entitled to work' Such a person can work anywhere and an employer does not need a license to employ such an individual. Under prior regulations, this person would have been considered as Locally Qualified. Licensed Someone who is an essential employee. An employer needs a licence to employee a licensed person

37 Under prior regulations, this person would have been considered a J category employee Registered Someone who does not qualify under the other categories. An employer needs a licence to employ a 'registered' person Under prior regulations, this person would have been considered as Non-Qualified. 2. Company Return Residential Status With effect from 1st July 2013 all Jersey residents will hold one of the following four Residential Statuses: Registered for work Licensed for work Entitled for work Entitled For the purposes of the Manpower Return a person should be recorded as Entitled if they are either Entitled or Entitled for work. Please note that a person s entitled status may or may not carry the attribute of them being permanently entitled. Again, for the Manpower Return the status Entitled should be used. The total number of staff for employed by the business for each Residential Status and Employment Type must be entered in the appropriate part of the form Directors, Principals and Self Employed Owners All directors, principals and self-employed owners working in the business must include themselves as well as fellow working directors and principals in the return. Permanent vs Non-Permanent Contracts A permanent employee is one whose contract of employment is open ended. A non-permanent employee is one who is employed on a contract with a fixed termination date.

38 Part-time vs Full-Time All staff whose contract of employment is for more than 25 hours per week must be entered in the Full-Time category. All staff whose contract of employment is for 25 hours per week or less must be entered in the Part-Time category. Treatment of Zero Hours Contracts All employees who worked for any period of time during the calendar month of the Manpower Return (i.e. December and June) must be included in the Manpower Return in the appropriate section. There is no need to record or confirm whether or not such a person worked more or less than 25 hours during the month. Treatment of Temporary Staff All persons working in a business but employed via a contract with another company should be excluded from the businesses Manpower Return. Examples of such contracts would be the use of Temps employed via an employment agency or consultancy type engagements. Please note that if you are an employment agency employing such persons then you should include these staff in your headcount as normal. As a guide, if a business is liable for payment of the employer portion of the quarterly social security contributions then they should be included in that business s Manpower Return. Alternatively, if another business is paying for the person s employer social security contribution then this person should be excluded. Students Persons in full-time secondary or tertiary education who are aged 16 or over working in excess of 8 hours per week must be recorded on the Manpower return according to their contact type. Treatment of low hour workers Persons aged 16 or over yet working less than eight hours per week who are not on a zero hour contract should be included in the Manpower Return.

39 Exempt Staff Exempt staff will not be counted towards the total allowed employee level for the Manpower return. However, exempt staff must be listed in the employee return section of the Manpower Return but categorised as exempt. The follow persons would be classed as exempt: A replacement person for a leaving member of staff so long as the two employees do not overlap one another for a period longer than 30 days. A replacement person covering the maternity leave of another person for a period not longer than 9 months. For all other leave types, a person covering the leave of another member of staff for a period of no longer than 3 months. A person working for the business for a total period of 10 days or less in any 12 months. A person working for a total period of 60 days or less in any 12 month period as a company director, company secretary, partner, foundation council member, trustee of an express trust or other such equivalent responsibility. A person working in Jersey for a total period of 60 days or less in any 12 month period for one or more financial services companies where each such company is a member of an international group and for which the person works mainly outside Jersey. Anyone under the age of 16. A young registered person in possession of a letter from the Population Office confirming that they are exempt. 3. Nil Returns It is required by law than all business must submit a Manpower Return. If your business has ceased trading, temporarily stopped trading or not yet started trading then a Manpower Return must still be made.

40 If your business falls into one of the three categories that would cause a nil return then please select this reason from the appropriate drop-down list. 4. Employee Return New for the 2014 Manpower return is the requirement to submit information regarding those persons employed by the company. The following information is required for each employee: Social Security Number (mandatory, primary key) First Name (mandatory) Last Name (mandatory) Residential Status (Registered, Licensed, Entitled) (mandatory) Full-Time / Part-Time (mandatory) Contract Type (Permanent, Non-permanent, Zero Hour) (mandatory) Exempt Status (exempt = Yes or No) (mandatory) Date joined business Date left business