521 - 4th February 1992
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PAYROLL V6.0B
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As  announced  at  the	Global	Reseller  day,	a new version of
Payroll is required to cater for the introduction  of  Class  1A
National Insurance Contributions (NICs).
 
This version of payroll will be available by 1st May 1992.
 
In  line  with the deadline of year end returns of 1st June 1992
V6.0A will not be supported after 31st May 1992.
 
NB. May historically has been the busiest month of the year.  In
+++ ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
    order  to  ensure  your  orders are processed, please ensure
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    they are received by 8th May at the latest.
    +++++++++++++++++++++++++++++++++++++++++++
 
The  remainder	of  this  bulletin  is	to  provide   background
information.   It  is  vital  that  all users refer to their own
copies of Government pamphlets and do not  use	this  background
information as a statement of the regulations.
 
Class  1A  NICs  were introduced on 6th April 1991 for employers
who provide cars for private use and on any fuel made  available
for  that  private use.  Class 1A NICs are payable in respect of
directors (irrespective of earnings) and  employees  paid  at  a
rate   of  ~8,500  per	year  (including  taxable  expenses  and
benefits) or more.
 
The payments for Class 1A NICs are to be collected in June  each
year  in respect of the previous tax year.  The first payment is
due on 19th June 1992.
 
Contributions for employees who left employment  during  1991/92
tax  year  are	to  be	calculated  on	a pro-rata basis, as are
contributions for new employees and employees with cars for part
of   the   tax	 year	(including  periods  when  the	car  was
unavailable).
 
Tables are provided by the  DSS  to  calculate	the  appropriate
payment,  three factors determine the amount:  age of car at 5th
April 1992, cylinder  capacity	of  engine  and  the  number  of
business  miles  travelled.   Payments	may  be  reduced  if the
employee pays for the private use of the car.
 
If an employee changes company cars during the tax  year  it  is
important  that  the date of the transfer is known together with
the number of business miles travelled in both cars.  Obviously,
if  an	employee  changes  cars  more than once the same data is
required for all cars.
 
For example, if an employer used a 1600cc  1986  Vauxhall  Astra
from April until December 1991 and travelled 1700 business miles
and then used a 2800cc 1991 Vauxhall Senator for  the  remainder
of the year and travelled 1700 business miles, the payment would
be calculated as follows:-
 
    Astra:    1700 miles in 8 months would give  2550  miles  in
	      tax year - 8/12 of appropriate charge required.
    Senator:  1700  miles  in  4 months would give 5100 miles in
	      tax year - 4/12 of appropriate charge required.
 
 
As an approximate guide, Global Payroll will operate as follows:
 
*   There is to be an extra option in the 'CLOSE PERIOD' submenu
    for 'CLASS IA NICs'.
 
*   This will lead to a submenu with five options:-
 
    1.	 Create NIC 1A file
    2.	 Update employee details
    3.	 Calculate payments
    4.	 Print payments
    5.	 Update tables
 
Option	1 will scan the previous years employee payroll data (or
current year if run before 6th April) and create a new file that
contains a record for each employee.
 
Option 2 allows a search to select individual employees and give
details of each company car used during the year, such as  start
date, end date, size of engine, age of car at 5th April 1992 and
number of business miles.
 
Option 3 will scan the file to ensure  that  each  employee  has
been processed and calculate the appropriate payments.
 
Option 4 will print the information required by the DSS.
 
Option	5  allows  the	modifications  of  the	'Car/Fuel "Scale
Charges"' tables in a similar manner to  the  existing	National
Insurance tables.

New National Insurance tables are needed from 6th April 1992.  A
dealer bulletin is to be issued  in  early  March  giving  exact
details.
 
It is proposed that a new tax code ('K' - code) is introduced on
6th  April  1993,  this  will  necessitate  another  release  of
Payroll.