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Purpose:

The purpose of this Wiki is to understand how RTI Net pay is calculated in a normal scenario and also when there is an NI refund / arrear.

Overview:

To know more about this behavior, we must first review the necessary information, and then know how to reproduce it.

After reading this article you will be able to identify the whole concept.

1. Obtaining the necessary information:

For replicating the above scenario, ensure that GBRTI payroll function in the feature GBCHG should have RTI solution active for the payroll area under which employee was hired.

 

 

Now the employee is hired from 01.04.2013 in the payroll area G1. After this, live payroll was run for the month of April 2013 i.e. period 1 2013 in RPCALCG0 report for this employee which will create RTI table in the payroll cluster of the employee. Exit the payroll in PA03.

2. Reproducing the behavior:

Please refer below screenshot from payroll cluster of the employee showing the payroll results of period 1 2013 (April 2013)

BELOW TABLE SHOWS RTI TABLE VALUES



BELOW TABLE SHOWS RTINI TABLE VALUES

 

BELOW TABLE SHOWS NIRA TABLE VALUES

 

Calculation of RTI Net Pay in the RTI table is as per the below formula :

RTI NET PAY = Taxable Pay TP (RTI Table) – Tax Paid TP (RTI Table) – EE NIC (RTINI table or /301 in RT table) – /CSL (SL TP in RTI table) – NIC Arrears / Refunds from NIRA table

NOTE : If arrears are present in NIRA, will be subtracted and if refunds are present in NIRA, will be added.

As per the above 3 screenshots, since there is nothing present in NIRA, the calculation will take place as below :

5000.00 – 1151.30 – 367.88 – 327.00 – 0.00 = 3153.82 GBP

 

3. See Also:

Lets say now that the NI category of the employee was changed in IT0069 from A to D with effect from the hire date i.e. 01.04.2013

 

After having the payroll run of this employee for period 2 2013 i.e May 2013, it will retro back to April and NIRA table will have some value in payroll results. In transaction pc_payresult, you can see now 2 records

 

 

Period 1 in 2 2013 won’t have RTI table created as shown below

 

However, period 2 in 2 2013 will contain all the values as evident from below screenshots

 

 

Now, Calculation of RTI Net Pay in the RTI table is as per the below formula :

RTI NET PAY = Taxable Pay TP (RTI Table) – Tax Paid TP (RTI Table) – EE NIC (RTINI table or /301 in RT table) – /CSL (SL TP in RTI table) – NIC Arrears / Refunds from NIRA table

NOTE : If arrears are present in NIRA, will be subtracted and if refunds are present in NIRA, will be added.

As per the above 3 screenshots, since there is a value present in NIRA, the calculation will take place as below :

5000.00 – 1151.30 – 367.88 – 327.00 – (– 40.00) = 3233.60 GBP

 

 

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