Finance Procedure 5.12 PAYROLL PROCEDURE - SERVICES

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1 Finance Procedure 5.12 PAYROLL PROCEDURE - SERVICES FP5.12 Version 001 Sept INTRODUCTION This procedure sets out the processes and responsibilities for administering and managing payroll at Services. 2.0 RESPONSIBILITIES The Financial Controller has overall responsibility for ensuring that payroll is properly managed and administered in Services and that this procedure is followed. Heads of Services have local responsibility for ensuring that payroll is properly authorised and administered in services and that this procedure is followed. The Finance Administrator is responsible for the day to day administration of payroll and the submission of duly authorised monthly payroll input pack to Central Finance for payroll processing. They must ensure that this procedure is followed and any discrepancies or deviations are brought to the attention of the manager. 3.0 REFERENCES None referred to 4.0 MONTHLY PROCEDURE 4.1. Process Overview The Finance Administrator at the service needs to collate all staff timesheets and duty rosters where applicable. Time sheets must be authorised by the Head of Service or an appropriate member of staff with delegated authority from the Head of Service. The Finance Administrator uses the information from the timesheets and rosters to complete a payroll input pack for submission to Central Finance by the 10 th day of each month. The monthly payroll input pack consists of: Variable Input Sheet Payroll Amendment Sheet Overtime Sheets Sleep in sheet (if applicable) Starters and Leavers Form New Starter Forms (if applicable) FP5.12 Page 1 of 5 Sept10/ver01

2 Personnel Sheets Sickness Records (if applicable) SMP Computer Input Form (if applicable) The input pack must be reviewed and authorised by the Head of Service prior to submission to Central Finance Producing the Input Pack The staff timesheets and rosters are used by the Finance Administrator to identify variations to basic pay for permanent staff and staff on fixed term contracts including overtime and sick pay. They are also used to identify hours worked for relief staff. The majority of the payroll input pack is compiled at each service on an excel workbook. The workbook consists of the following worksheets: Current Staff Database This is a record of all staff currently employed by the service and their current pay details. This is maintained and updated monthly as part of the monthly payroll procedure. Leavers Database This is a record of all ex service employees and is maintained on a monthly basis with any leavers in the month being transferred from the current to the leavers database. Variable Input Sheet This sheet is used to capture any variations to pay for employees in the month, including adjustments to basic salary, overtime and sleep ins payable and other adjustments for sick pay, maternity pay etc. It also captures hour s payable to relief staff. Overtime Sheet This sheet is used to capture overtime earned by staff in the previous month and the applicable hourly rate. It provides the supporting calculations for the overtime payable detailed on the Variable Input Sheet. Sleep In Sheet This sheet is used to capture sleep-ins undertaken in the previous month and provides the supporting calculations for the sleep ins payable detailed on the Variable Input Sheet. FP5.12 Page 2 of 5 Sept10/ver01

3 Payroll Amendment Sheet This sheet is used to provide narrative and explanation to support entries on the variable input sheet. New Starter Forms A new starter form is completed for each new member of staff and includes all necessary employee details for payroll set up. When submitted to Central Finance as part of the payroll input pack it must include the supporting letter of appointment, note of acceptance and bank details. Starters & Leavers Form This sheet is used to summarise details of any starters and leavers in the month including staff moving into new positions or changes in pay scales. Sickness Records The Finance Administrator at the service maintains sickness records for all staff and submits records for staff currently off sick as part of the payroll pack. The Excel Workbook is completed by the finance administrator using the information provided on the timesheets and duty roster and any other change notifications received from the Personnel Department or Head of Services such as new starters and leavers. In addition to the excel worksheets, copies of personnel sheets are submitted with the payroll input pack detailing changes required to employee details on Sigma. This includes deductions from pay such as court orders and Child Support Agency payments. Where applicable SMP input forms are also included in the pack providing details of Maternity Pay entitlement and duration Review and Authorisation On completion of the input pack the Head of Service must review and authorise it Completion of Monthly Process The input pack is forwarded to Central Finance for review and processing. On completion of payroll processing the payslips and payroll reports are received from Central Finance. These need to be checked by the Finance Administrator to ensure that the payslips and reports reflect the original variable input form and that employee tax codes and pension deductions are correct. Any significant errors are reported to Central Finance for correction in the current month. Smaller errors are adjusted in the next month s payroll. The Finance Administrator arranges for the safe distribution of payslips to staff, posting any to staff who are off work for an extended period of time. FP5.12 Page 3 of 5 Sept10/ver01

4 5.0 ANNUAL PROCEDURES 5.1. P60s Services receive P60s for all staff from Central Finance. These need to be distributed safely to all staff Review of Records Central Finance distribute a full listing of personnel sheets and pension records for all staff to every service each year. The finance administrator needs to review these records and advise Central Finance of any errors or changes required Pension Schemes For services with staff in the Teachers Pension Scheme, the Finance Administrator must submit an annual contributions return Salary Increments The Finance Administrator must compile and submit details of salary increment changes for the April Payroll each year Inflationary Pay Award On notification from the Personnel Department the Finance Administrator must compile and submit details of the pay changes applicable for any inflationary pay award including calculation of back pay due in that particular pay month. 6.0 PENSION SCHEME REQUIREMENTS Nugent Care currently operates 3 pension schemes. The Merseyside Pension Scheme, a local government final salary scheme which is closed to new entrants, the Teachers Pension Scheme which is available to teachers working in the 3 schools and the Norwich Union Pension Scheme which is open to new employees. The Finance Administrator must ensure that relevant staff changes in relation to membership of the respective schemes are reported using the correct forms for those schemes. 7.0 CONFIDENTIALITY AND DATA PROTECTION Payroll information is confidential and falls under the requirements of the Data Protection Act. All staff involved in the production and handling of payroll must ensure that information is kept secure and confidential. FP5.12 Page 4 of 5 Sept10/ver01

5 Payroll records must be kept in locked and secure cabinets in Services. Payroll records need to be kept by Nugent Care for 6 years. Services should agree with central finance which payroll records if any need to be kept at the service for that duration as central finance will normally have the original documentation. FP5.12 Page 5 of 5 Sept10/ver01