Finance

FAQs - Payroll

 

    

Q. When is pay day?

 

A. Pay day is the last working day of the month. This may change because of bank holidays, especially at Christmas. You can download a a list of payment days to double check.

 

Q. What is my annual rate of pay?

 

A. To arrive at your annual rate of pay simply multiply your gross monthly salary by 12. For those who are hourly paid, multiply your hourly rate by 37 and then by 52. (Please note this is your annual rate of pay, if you work less than 37 hours a week your actual pay will be less).

 

Q. I sent in a timesheet but I have not been paid. Why is this?

 

A. There are various reasons why you may not have been paid:

 

Reason for Non-Payment

Action Required

The claim arrived too late to be processed in the current payment run None - provided all the paperwork is correct, the claim will be paid on the next available pay run
The claim arrived too early for payment None - claims are paid a month in arrear (a week in arrear on the weekly payroll). Provided all the paperwork is correct, it will be paid on the next available pay run
The claim has not been authorised by an authorised signatory All claims must be signed or e-mailed by an authorised signatory and will be returned by Payroll to the department if this has not been done
The cost centre, project code, rate of pay and dates of employment did not match up with a current position recorded on the Agresso Business World system Payroll will inform the department if this is a problem. They will need to send a 'Notification & Authorisation of Employment of Temporary Staff' form (PER 05) to Human Resources to cover the position. The claim will be paid on the first available pay run after the PER 05 has been processed
The claim has not been received by the Payroll Office Claims can be held up for many reasons such as a lack of authorised signature, the form being lost in transit etc. If Payroll have not received your form you will need to contact your Head of Department.

 

 

 

FAQs - Pensions

Q. How much will it cost to join the pension scheme?

A. The contribution rate for Teachers Pension Scheme (TPS) is 6.4% of your pensionable pay. However, because the scheme is contracted out of SERPS (State Earnings Related Pension Scheme) you will pay a lower rate of National Insurance. A further saving is made as the pension contributions are tax exempt. For example:

Not in the Pension Scheme

Pensionable Pay

1,000.00
Deduction - Tax (code 603L) 99.20
Deduction - Pensions 0.00
Deduction - National Insurance (A rate) 60.17
Total Deductions 159.37
Net Pay 840.63

In the Pension Scheme

Pensionable Pay

1,000.00
Deduction - Tax (code 603L) 86.40
Deduction - Pensions 64.00
Deduction - National Insurance (A rate) 50.40
Total Deductions 200.80
Net Pay 799.20

In this example, although you would pay 64.00 a month to join the pension scheme it would only reduce your net pay by 41.43 because of the tax and NI advantages.

This example is for guidance only and is based on rates in use for 2008/09 and assumes a tax rate of 20%. The figures may vary between individuals depending on their personal circumstances.

If joining the Local Government Pension Scheme (LGPS)  then the same applies with regard to reduced tax and NI but the pension contributions are payable are on a sliding scale according to annual pensionable pay. The pay bands and contribution rates for 2009/10 onwards are:

Band Salary Range Contribution Rate
1 0 - 12,600 5.5%
2 12,600 - 14,700 5.8%
3 14,700 - 18,900 5.9%
4 18,900 - 31,500 6.5%
5 31,500 - 42,000 6.8%
6 42,000 - 78,700 7.2%
7 78,700+ 7.5%

 

Q. If I leave the University what will happen to my pension?

 

A. When you leave the University the payroll team will send leaver details to your pension scheme provider. If you are retiring they will use the information to calculate and pay your pension benefits.

 

If however you are leaving the University but will be employed elsewhere and your new employer is covered by the same pension scheme you will be able to continue your membership.

 

If your new employer is not covered by the same pension scheme you will be entitled to deferred benefits which you will receive when you retire. Your pension provider will contact you after they have processed your leaver details and give full details of the options open to you.

 

 

Q. Can I increase my pension benefits?

 

A. Yes. There are various options available the most common being Additional Voluntary Contributions. You are able to pay additional contributions to increase your pension benefits either as a  percentage of your pensionable pay or as a fixed amount each week or month. You have a choice of AVC provider depending on whether you are a member of the Teachers Pension Scheme or Local Government Pension Scheme, these are currently Prudential, Nationwide and Standard Life. 

 

Generally, the amount accumulated in your AVC fund will be used to purchase an annuity when you retire which will provide you with an additional pension (although the date the annuity is purchased can be deferred).

 

More flexibility is planned in the regulations on how AVC's can be used to increase your benefits. For more up to date information you can obtain a pension scheme booklet from HR or log onto your pension scheme web site.

 

 

 

FAQs - TAX & National Insurance

 

 

Q. What is my tax reference number?

 

A. Our tax reference can be found on the back of your payslip. It is 577/C642.

 

Q. When do I get my P60?

 

A. HM Revenue and Customs regulations oblige us to issue P60’s by 31st May at the latest. In practise we process them as soon as possible and would expect them to be issued by the second week in May. Please note, you will only receive a P60 if were employed by the University at 5th April. If you left before that date you will have received a P45 which contains your pay and tax information.

 

Q. Can I get my P60 any earlier?

 

A. All P60's are sent out at the same time as soon as we are able to process them. If you just need the figures but not the actual document these can be taken from your March payslip (monthly paid staff) or your last payslip before 5th April (weekly paid staff). They are shown in the bottom right hand box of your payslip as taxable pay to date and tax paid to date.

 

Q. Why is the pay figure on my P60 different from the gross pay  on my payslips for the year?

 

A. Your P60 shows the amount of your taxable pay, that is to say your gross pay less any pension contributions which are tax free.  The figures for pay and tax on your P60 should be the same as taxable pay and tax to date shown in the bottom right hand corner of your March payslip.

 

Q. I am leaving the University. When do I get my P45?

 

A. Once the Payroll team have been informed by HR that you are leaving they will make your final payment to include any holiday pay due on the normal pay day. Your P45 will be sent to you with your final payslip a few days later.

 

Q. What does the national insurance code on my payslip mean?#

 

A. The NI code determines the rate of your NI contributions.

 

Code A - For employees who do not contribute to one of our final salary pension schemes and are between the ages of 16 to 65 (men) and 16 to 60 (women).

 

Code C - For employees who are over 65 (men) or 60(women).

 

Code D - For employees who contribute to one of our final salary pension schemes and are between the ages of 16 to 65 (men) and 16 to 60 (women).

 

Code E - For married women who hold a reduced rate certificate. (These are no longer issued).

 

Code X - For External Examiners only

 

 

Q. I am not a British subject. DO I still need to pay tax and national insurance?

 

A. All employees are subject to paying National Insurance if they earn above the threshold (90.00 per week or 390.00 per month for 2008/09) and are between the ages of 16 - 60 (women) and 16 to 65 (men), except for External Examiners

 

Tax will also be deducted at the appropriate rate as if you were a British subject, but depending on your residency situation, you may be able to claim a refund. You should contact the Tax Office for further guidance