Moving to FreeAgent Payroll

You can move your RTI payroll to FreeAgent at any point during the year by using the year-to-date figures from your previous system to complete each employee's payroll profile.

Note 1: If you've already prepared a payroll in FreeAgent for a previous month (e.g. Month 1), but haven't then filed RTI using FreeAgent, you need to first delete this payroll before you can move your existing payroll to FreeAgent starting in a later month (e.g. Month 4).

Note 2: You would also use this method if you have been posting payroll journals for the first part of the tax year to 5th April 2014 and now wish to start creating payslips in FreeAgent, whether or not you are filing RTI payroll through FreeAgent..

Here's how to add the information required from your existing payroll when creating a payroll profile. You only need to do this for existing company employees who have been paid by your company during the year-to-date using your existing payroll:

1 Select that this person is an existing employee

In the 'Employment Details' section, make sure the option 'This person is: An existing employee' is selected. This is selected by default when adding a new payroll profile.

2 Select that this person has been paid this year

In the the 'Previous Pay This Tax Year' section, select the option 'This person: has been paid for this employment since 6 April'. This will then show a number of other options so you can enter year-to-date totals.

3 Enter year-to-date totals

Enter all the year-to-date totals you have for the employee, including pay, deductions, statutory pay, and pension contributions.

4 Enter earnings by NI category letter

For every month an employee is paid, an NI Letter is used for their earnings. To calculate National Insurance for the rest of this year's payroll, we need to know how much NI has been paid for the employee during this employment to date by their NI Letter.

Note: When entering earnings by NI Letter please refer to the National Insurance contributions - rates and allowances from HMRC online.

If the employee's NI Letter hasn't changed during the year-to-date

Select the NI Letter used for these earnings and then complete the following options:

Gross Pay

The Gross Pay total to date for this NI Letter.

At LEL (Lower Earnings Limit)

The total earnings to date, for this NI Letter, at the LEL (where earnings are equal to or exceed the LEL).

LEL to PT (Lower Earnings Limit to Primary Threshold)

The total earnings to date, for this NI Letter, above the LEL, up to and including the PT.

PT to UAP (Primary Threshold to Upper Accrual Point)

The total earnings to date, for this NI Letter, above the PT, up to and including the UAP.

UAP to UEL (Upper Accrual Point to Upper Earnings Limit)

The total earnings to date, for this NI Letter, above the UAP, up to and including the UEL.

Employers NICs

The employer's National Insurance Contribution total to date for this NI Letter.

Employees NICs

The employee's National Insurance Contribution total to date for this NI Letter.

If the employee's NI letter has changed during the year-to-date

If the total earnings to date for an employee were split between more than one NI letter, use the Add Another Category option to add additional NI letters and split the earnings.

For example, an employee's month 1 payroll might have used NI Letter A, while months 2 to 5 could have then been switched to use NI Letter B. In this instance, if you were moving your payroll to FreeAgent in month 6 you would need to split the earnings to date for this employee between NI Letter A (total month 1 earnings) and NI Letter B (total months 2 to 5 earnings). You would split and enter these earnings as two separate line entries under earnings split by NI category letter.

Once you've completed each payroll profile including any year-to-date totals, you can run and report your next monthly payroll using FreeAgent.

Please note that you will still need to create payroll journals for previous months (e.g. months 1 to 3) however using RTI will update your accounts automatically for you, so that from the current month (e.g. month 4) onwards you can stop posting payroll journals.

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