Guide to the monthly pay statements Dental Services
PAY STATEMENT Non Contributory Items Credit Debit Total Contract Value 483,135.41 Monthly Pay 40,261.28 Superannuable Additions 1,596.00 Seniority payment 223456 S CAMPBELL 798.00 234567 LV PRIMUS 798.00 Non-superannuable Additions 10,000 Business rates Superannuable Deductions 8,995.00 Health body withholding Non-superannuable Deductions 12.00 Fixed levy 223456 S CAMPBELL Total Contract Value This is the annual contract value for the practice. If this amount has changed since the last schedule and you re uncertain as to the reason you should contact your PCT/LHB. Non-superannuable Additions These include business rates, health body advance payment, and payment to clear debit on contract, by transfer from another contract or by direct payment to NHS Dental Services. Monthly Pay This is the contract value for the month. Normally one twelfth of the total contract value. The figure will be different if the contract is uplifted (DDRB) or adjusted retrospectively. Superannuable Additions There are a number of superannuable payments made in addition to monthly payments; any associated contributions will be added into the provider or performer superannuation payments. Superannuable Deductions The deduction is subject to the practice expense ratio of 43.9% and is added to the provider s superannuation contributions. Non-superannuable Deductions This includes the performer/provider LDC levy and recovery of underperformance on a contract. If underperformance is included on the statement as non superannuable. This should be reflected via the year end declaration. Note: The payment will only be included on the statement if it is due to the provider
Non Contributory Items Credit Debit Provider s Net Pensionable Earnings 223456 S CAMPBELL 20,798 Provider s Superannuation Contribution 223456 S CAMPBELL @ 6.5% 1,351.87 Performers Net Pensionable Earnings 16,896 234567 LV PRIMUS 4,096 234568 CD JONES 12,800 Performers Superannuation Contribution 234567 LV PRIMUS @ 6.5% 266.24 234568 CD JONES @ 6.5% 832.00 1,098.24 Provider s Net Pensionable Earnings This only appears if the provider has declared earnings on the contract. It would not be on the statement if the contract belongs to a dental body corporate or is a partnership. If this amount has changed since the last schedule and you re uncertain as to the reason you should contact your PCT/LHB. Provider s Superannuation Contribution @ 6.5% This is the provider s contribution on their net pensionable earnings. From 1 April 2008 the pension regulations changed and new tiered contribution rates were established. The tiers range from 5 to 8.5% and are determined each financial year based on the annual declaration. The declared net pensionable earnings for financial year 2007/2008 determine your contribution tier for 2009/2010. The tier applies to all contract earnings. If you are a provider that has a VDP working on the contract you receive payments for service costs, these are subject to superannuation contributions. If you receive a payment for service costs the superannuation contribution is added to the provider superannuation contribution (e.g. in the example above if the service cost payment is 10,000 then 1 285.35 would be added to 1,351.87 for S Campbell 223456) Performer s Net Pensionable Earnings In the example above the figure of 16,896 is the total net pensionable earnings for all performers on the contract. The subsequent figures relate to each individual performer. This will only appear if the provider has declared earnings for a performer on the contract. The performer will also receive a separate superannuation notification that includes a summary of forms processed. If this/these amount(s) has/have changed since the last schedule and you re uncertain as to the reason you should contact your PCT/LHB. Performer s Superannuation Contribution This is the performer s contribution on their net pensionable earnings. From 1 April 2008 the pension regulations changed and new tiered contribution rates were established. These range from 5 to 8.5% and are determined each financial year based on the provider s annual declaration. The declared net pensionable earnings for financial year 2007/2008 determine your contribution tier for 2009/2010. The tier applies to all contract earnings. Note: The payment will only be included on the statement if it is due to the provider. In Wales the service costs are included in the monthly pay. 1 Payment of 285.35 is achieved 10,000 x 43.9% x 6.5%
Non Contributory Items Credit Debit Patient Charges 14,167.00 223456 S CAMPBELL 5,879.00 234568 CD JONES 3,851.00 846578 AB DAVIES 2,850.00 234567 LV PRIMUS 1,587.00 Remissions 3,895.00 223456 AM SMITH 1,500.00 234568 CD JONES 215.00 846578 AB DAVIES 750.00 234567 AB JONES 1,430.00 Patient Charges This shows the patient charges accrued against each performer on the contract. The figure of 14,167.00 is the total debit on the contract for all performers. The gross patient charges figure does not include those entitled to automatic exemption. These are patients under eighteen, expectant and nursing mothers, adults aged eighteen in full time education and prisoners. Income Support Income-based Jobseeker s Allowance Pension Credit Guarantee Credit Income-related Employment and Support Allowance Hold a tax credit NHS exemption certificate Remissions Patients who have a low income may be able to claim help with NHS charges. This is known as a remission. The figure of 3,895.00 is the total credit on the contract for all performers activity reports (FP17s) that include remissions. HC2 certificate HC3 certificate (partial remission) There is a subtle difference between an exemption and a remission. An exemption means there is no charge to the patient. A remission means there is a charge but the patient is entitled to help paying it. The patient is entitled to full or partial help with the charge if, on the date of acceptance or the date the charge was made, they or their partner are receiving:
Non Contributory Items Credit Debit VDP Salary 2,396.00 846578 AB DAVIES 2,396.00 Superannuation Contribution For VDP 155.74 846578 AB DAVIES @ 6.5% 155.74 Trainer s Grant 719.00 223456 S CAMPBELL 719.00 Trainer s Contribution on Grant 223456 S CAMPBELL @ 6.5% 46.73 VDP ERNIC 176.21 846578 AB DAVIES 176.21 VDP Service Costs 5,000.00 If the provider has a vocational dental practitioner (VDP) on their contract the payments will appear as above. Trainers s contribution on grant The trainer pays superannuation on the grant dependent on their contribution tier. The grant is superannuable at 100%. VDP Salary If there is more than one VDP then each will be shown separately with an accumulative figure being shown in the credit column. VDP ERNIC If there is more than one VDP then each will be shown separately with an accumulative figure being shown in the credit column. Superannuation Contribution For VDP The superannuation contribution (normally 6.5% of salary based on current tier arrangements) is shown against the VDP and if there is more than one VDP on the contract an accumulative figure is shown in the credit column. If the VDP has opted out of the NHS pension scheme then there will be no entry for them. VDP Service Costs This payment is a contractor payment and if there is more than one VDP on the contract an accumulative total is shown. Superannuation contributions (43.9% of the total) are automatically taken from the provider. (See Provider s Superannuation Contribution for further explanation) Trainer s Grant The grant is shown against the trainer responsible for the VDP. If the trainer has two VDPs on the contract an accumulative figure is shown against them and will also be shown as a credit.
Employers Contribution @ 14% (for information) Provider 223456 S CAMPBELL 2,911.72 Performer 234567 LV PRIMUS 573.44 Performer 234568 CD JONES 1,792.00 VDP 846578 AB DAVIES 335.44 Trainer 223456 S CAMPBELL 100.60 Providers Non-superannuable Earnings (for information) 223456 S CAMPBELL 5,500.00 Performers Non-superannuable Earnings (for information) 234555 AB DISTIN 5,000.00 456789 HJ EVANS 5,000.00 Employer s Contribution @ 14% (for information). If you are part of the NHS Pension Scheme in addition to your own contributions (see page two) the health body contributes an amount equal to 14% of net pensionable pay. In total the value of the Scheme benefits comes to between 19 and 22.5% of overall pay. The payment does not have an impact on the final net pay to the contract. Provider s Non-superannuable Earnings (for information). The figure shown is the amount of the monthly payment that is not being superannuated on the contract. Only 43.9 % of the monthly payment can be declared for pensionable earnings. If the total contract value or net pensionable earnings have been changed these amounts will also change. If you have any questions about why any of these amounts have changed you should contact your PCT/LHB. Performer s Non-superannuable Earnings (for information). The figure shown would normally be for performers who despite being non-superannuable still require an individual pay statement to be issued. In some cases the figure will be supplemented with declared net pensionable pay for a performer.
Non Contributory Items Credit Debit SUB TOTALS 64,043.49 25,826.58 TOTAL NET PAY 38,216.91 SUB TOTALS The total of all credits and debits on the statement TOTAL NET PAY The credit less the debit is the total net pay to the contract If the contract is in negative, there will be a zero payment to the contract until it is cleared. In most cases negatives are generated by the closure of a contract where further patient charges are processed by NHS Dental Services without a monthly payment being due.
PROVIDERS ACTIVITY STATEMENT Activity Statement Activity for November Contracted Units of Dental Activity for 2010/11 26,547 Contracted Units of Dental Activity for 2009/10 26,547 Units of Dental Activity this month Current financial year (2010/11) 2,085.50 Last financial year (2009/10) 12.00 Cumulative Units of Dental Activity Current financial year (2010/11) 12,575.05 Last financial year (2009/10) 24,877.20 Units of Dental Activity per Performer 123456 F Smith Current financial year (2010/11) 550.55 Last financial year (2009/10) 0.00 234561 G Smith Current financial year (2010/11) 790.00 Last financial year (2009/10) 0.00 345612 H Smith Current financial year (2010/11) 745.00 Last financial year (2009/10) 12.00 Contracted Units of Dental Activity for 2010/11 26,547 Contracted Units of Dental Activity for 2009/10 26,547 Units of Dental Activity this month Current financial year (2010/11) 2,085.50 Last financial year (2009/10) 12.00 Cumulative Units of Dental Activity Current financial year (2010/11) 12,575.05 Last financial year (2009/10) 24,877.20 Contracted units of dental activity for 2010/11 Contracted level of activity for the current financial year Contracted units of dental activity for 2009/11 Contracted level of activity for the previous financial year. Cumulative units of dental activity The number of units of dental activity achieved to date in the current financial year and the number achieved in the previous financial year, updated to reflect any processed in the month. Units of Dental Activity this month The number of UDA processed in the month and allocated against the current and previous financial years.
Units of Dental Activity per Performer 123456 F Smith Current financial year (2010/11) 550.55 Last financial year (2009/10) 0.00 234561 G Smith Current financial year (2010/11) 790.00 Last financial year (2009/10) 0.00 345612 H Smith Current financial year (2010/11) 745.00 Last financial year (2009/10) 12.00 Units of Dental Activity per Performer This section shows the number of UDA/UOA processed in the month for each performer on the contract and which financial year the activity relates to. HINTS AND TIPS It is important that you speak with your health body regarding any of the following changes to your contract: superannuation performer starting or leaving transfer of contract to a new provider (by agreement through the contractor) twenty four hour retirement This will assist health bodies in making timely changes via the NHS Dental Services payments on-line system. Failure by the provider to communicate changes will have an impact on how payments are made, timeliness of payments, the processing of activity reports (FP17) and could have an affect on the presentation of your monthly pay statement. It is also important to submit activity reports on a regular basis, in accordance with the regulations you are required to submit FP17s (electronically or paper) within two months of the date treatment was completed. By submitting activity on regular basis and also taking the time to reconcile the number of processed reports against your own systems may help alleviate year end problems (shortfall on contracted activity for the year). The summary of forms processed, which is part of the performer pay statement (superannuation notification), may also assist you.
FREQUENTLY ASKED QUESTIONS What does Automatic Offset of Negative mean? This note is created when the performer schedule has gone into negative, usually as a result of patient charge revenue for the contract exceeding the provider s allocation for that month. The patient charge revenue is deducted from the allocation and if this exceeds the monthly allocation it will create a negative amount. The negative will clear once the deficit caused by the high level of patient charges has been cleared. Until the negative is cleared the performers monthly superannuation statement will show as 0.00 and the provider s pay statement and the performers superannuation statements will show the comment automatic offset of negative. I have a levy entered on my pay statement, what is it for? All levies are added onto your contract by the PCT/LHB using our online payments system (Payments Online). The levy is a payment to your Local Dental Committee. If you have any questions about why you are paying this levy you should speak to your PCT/LHB. What does HB miscellaneous payment mean? This is a payment made to you by your PCT/LHB. It is categorised as miscellaneous because it is a non routine payment that doesn t fall within any of the specific payment categories available to the PCT/LHB. The PCT/LHB has the option to enter a description of the payment when recording the adjustment. If your PCT/LHB has added any explanatory notes against the adjustment they have added onto Payments Online then our Helpdesk should be able to let you know what that note says. If there is no explanatory note present then you will need to contact your PCT/LHB for further clarification. How is the net charge for patient charges calculated? Patient charges are deducted for all claims scheduled, less any remission amounts. What is a non-contributory item? This is a heading on the pay statement and is for information purposes. What does Health Body withholding mean? A health body withholding is when a PCT/LHB is closing a contract and has decided to retain payment prior to the actual contract closure date, to ensure there is sufficient money against which any outstanding patient charge revenue can be netted off against. It is inevitable that an outgoing provider or their performers will generate patient charge revenue prior to the contract closing but the relevant FP17s/EDI claims will not be processed until after the contract has closed. In some cases the processing of these claims can result in the creation of a negative schedule. The PCT/LHB can therefore withhold payment until all outstanding patient charge revenue has been processed. Once it has all been processed they release the withheld money, which the patient charge revenue is then be netted off against. The Regulations do state that the contract between PCT/LHB and practitioner 'shall make suitable provision for arrangements on termination of a contract including the consequences (whether financial or otherwise) of the contract ending'. Providers net pensionable earnings why doesn t this figure add up to 43.9% of the total contract value? A provider is entitled to claim up to 43.9% of the contract value for the contract year in pensionable earnings. However, the amount of the providers net pensionable earnings will depend on how much of the total contract value has been allocated to the performers working on the contract, the unallocated balance could then be allocated to the provider. At the end of the financial year the provider is required, under NHS Pension Regulations, to complete the annual superannuation declaration showing their own net pensionable pay for the financial year together with the actual allocation for each the performers on the contract.
What is the difference between Added Benefits and Added Contributions? Prior to April 2008 performers could apply to purchase old style Added Benefits but this option is no longer available. From April 2008 performers can only buy additional pension, known as Added Contributions. The NHS Pension Scheme guide contains more information and is available on the NHS Pensions website www.nhsbsa.nhs.uk/pensions What does other years mean? The activity statement will show the activity that has been processed that month against the financial year that it relates to. Both the current and immediately previous financial years are shown on the activity statement. Any claims that have been processed during the month that relate to a financial year prior to the current and immediately previous years will show under other years. What are business rates? Business rates are also known as reimbursement of non domestic rates and more information about the payment of business rates can be found in the Statement of Financial Entitlement, a copy of which can be found on our website at www.nhsbsa.nhs.uk/dentalservices/855.aspx Why does my provider pay statement show both provider and performer contributions being taken for myself? This happens when the contributions have been taken from the provider s superannuable allocation and there is also a superannuable adjustment which has been paid against the provider as a performer. The units of dental activity for each performer will also show a similar breakdown. The cumulative units of dental activity will be broken down into current financial year and last financial year but the activity statement will not show cumulative values for Other years.
Contact us NHS Dental Services Compton Place Road Eastbourne East Sussex BN20 8AD Tel: 0845 126 8000 Fax: 01323 433517 Email:dentalservices@ppa.nhs.uk www.nhsbsa.nhs.uk/dental NHS Dental Services is part of the NHSBSA The NHSBSA was established following the 2004 review of bodies operating at arm's length from the Department of Health (DH). The NHSBSA brought together five of these bodies into a single, unified organisation from 1 April 2006. In establishing the NHSBSA, the DH defined it as "The main processing facility and centre of excellence for payment, reimbursement, remuneration and reconciliation for NHS patients, employees, and other affiliated parties". March 2011