Avoiding Pitfalls in Employer Payment Summary Submissions
Learn how to navigate EPS submissions effectively, avoid common errors, and ensure smooth communication with HMRC.
Employer Payment Summary (EPS) submissions are crucial for payroll management, ensuring employers accurately report payments and deductions to HM Revenue and Customs (HMRC). Mistakes in this process can lead to penalties and compliance issues.
EPS Submission Process
The EPS submission process involves reporting adjustments to HMRC, such as statutory payments and recoverable amounts. Employers must ensure submissions are accurate and meet deadlines to avoid penalties. This process begins with gathering payroll data, including Statutory Sick Pay (SSP), Statutory Maternity Pay (SMP), and Employment Allowance claims.
Using HMRC-approved payroll software, employers generate EPS reports with correct formatting and complete information. Submissions must be made by the 19th of the following tax month—for example, adjustments in October should be submitted by November 19th. Under the Real Time Information (RTI) system, all payroll data, including the EPS, must be submitted promptly.
Common Errors in EPS Submission
Errors in EPS submissions often stem from incorrect data entry or outdated information, leading to discrepancies in reports. These mistakes can trigger audits or penalties. Employers should regularly check data accuracy before submission.
Late submissions are another common issue, often caused by misaligned payroll cycles and deadlines. Missing the monthly deadline can result in penalties and interest charges. Aligning payroll processing dates with EPS deadlines is key to avoiding delays.
Technical issues with payroll software, such as pending updates or misconfigurations, can also lead to incomplete submissions. Regular software maintenance and updates are essential. Employers should collaborate with software providers to ensure systems function properly.
Correcting Duplicate Submissions
Duplicate EPS submissions create confusion and administrative challenges. When an EPS is submitted more than once, conflicting data may arise, prompting inquiries or audits. To address this, employers should review all EPS records and cross-check submission dates and reported amounts. Proper documentation, including copies of submitted forms and HMRC confirmation receipts, is essential.
After identifying a duplicate entry, employers must notify HMRC with a clear explanation and corrective actions. In some cases, submitting an amended EPS may be necessary. Effective communication with HMRC helps expedite resolution and mitigate penalties.
Communicating with HMRC
Clear communication with HMRC is vital for resolving payroll submission issues. HMRC’s online services provide platforms for queries, submissions, and updates, ensuring efficient and traceable correspondence.
For complex matters, such as tax credits or intricate payroll adjustments, employers can contact HMRC via their helpline or employer support services. Having relevant documentation ready ensures faster resolution and more effective support.