Expat Employers

Setting up an Expat Employer   

To create a new employer select: File > New > Employer from the menu.

Alternatively click on the ‘New employer’ hyperlink at the top right of the ‘All Employers’ home page control.

The ‘Employer’s name’ window appears:

Type in the first part of the Contact / Clients name.

The matching contacts will appear in a grid below the ‘Name of employer’ field. Tick the relevant check box and click on the ‘Next>>’ button.

The ‘Input employer address’ window appears:

You can accept the address or edit it. Then click on the ‘Finish’ button to create the ‘Expat’ employer. The ‘Tax years for …’ screen is displayed. Where the employer does not yet exist in the database then no grid will appear below the ‘Name of employer’ field on the ‘Employer’s name’ window.

Click on the ‘Next >>’ button to open the ‘Input employer address’ window:

Type in the address or use the ‘Click here to select an existing address’ hyperlink to select an existing address.

Click on the ‘Finish’ button to create the ‘Expat’ employer. A contact will also be set up in the database. The ‘Tax years for …’ screen is displayed.

Click on the ‘Click here to create a new year…’ hyperlink to open the ‘Select year’ window and add a new tax year to the Expat Employer.
Select the Tax year from the drop-down.

and click on the ‘Next >>’ button.

Click on the ‘Finish’ button to create the new tax year. The ‘Employer Details’ tab opens.

Add in the ‘PAYE Reference’. If appropriate tick the ‘Close company?’ and ‘Foreign employer?’ check boxes.
The other tabs are detailed below.

‘Equalisation Option’ tab

Click on the ‘Equalisation’ tab to make that tab the active tab.

The ‘Equalisation Option’ is set on this screen. The options are:

• Full
• Employment only
• Specific
• None

‘Full’ equalisation is where all the employment and non-employment income and gains are included in the gross up and the employer gets the benefit of all the allowances, deductions, rate bands etc.

‘Employment only’ equalisation is where only the employment income is included in the gross up calculation. Non personal income e.g. bank interest is excluded. The employer gets the benefit of the pension contributions to a registered overseas pension plan, personal allowances and the rate bands (including the extension of the rate bands) in the gross up calculation.

‘Specific’ equalisation is where the income, allowances, deductions to be included in the gross up are selected by the user. The template can be set up for a given employer. If this option is selected then the ‘Specific Equalisation’ tab becomes visible.

‘None’ is used where there is no gross up but the user wants the Expatriate Backing Schedules to show the split between UK and Non-UK duties.

The default ‘Equalisation Option’ is ‘None’. Click on another radio button to select that option.

The ‘Modified PAYE scheme’ check box should be ticked where the employer operates a Modified PAYE scheme and payments on account are not due.

'Renumeration Template' tab

Click on the ‘Remuneration Template’ tab to make that tab the active tab.

 

This is a standard grid screen within Personal Tax. New items are added to the bottom of the list. The ‘Move up’ and ‘Move down’ buttons can be used to move the highlighted row up or down and change the order of items in the template. This re-ordering of the items can not be done within the employment.

The ‘Home currency’ drop down defaults to ‘Great Britain (GBP)’. This can be changed to set the payroll home currency for this employer.
The template can also be copied from another employer by clicking on the ‘Copy from …’ button. Click on the ‘Copy from …’ button to open the ‘Employer select’ window:

Type in the first part of the employer’s name that you want to copy the template from or use the * or ? characters to get a full list of the expat employers.
 

Click on the ‘Employer’ in the list to display its remuneration template.

Click on the ‘Copy’ button to append the selected template to the current employer. A message box is displayed.

Click on the ‘Yes’ button to confirm that you want to copy across the template. The ‘Remuneration Template’ will be appended to this employer.

Where the ‘Deduction’ check box is ticked this indicates that the item will always have a negative value.

'Specific Equalisation' tab

The ‘Specific Equalisation’ tab becomes active if the ‘Equalisation option’ is set to ‘Specific’. The screen uses a tree structure.

The detail for the ‘Compensation’ group comes from the ‘Cash payments’ screen.

The group header rows e.g. ‘Compensation’ are identified by being in a bold font and having a button to the left of them.

To expand a particular group click on the + button in front of the ‘Description’. To collapse a group click on the – button in front of the ‘Description’.

It is possible to fully expand the tree structure by right clicking anywhere on the screen and selecting ‘Expand All’ from the right click menu. Similarly it is possible to completely collapse the tree structure by right clicking anywhere on the screen and selecting ‘Collapse All’ from the right click menu.

The functionality of the ‘Include in gross up?’ flag follows a top down approach as follows:

• When the ‘Include in gross up?’ flag for a group heading is set to ‘Yes’ then the flags for the members of that group are also set to ‘Yes’.
• When the ‘Include in gross up?’ flag for a group heading is set to ‘No’ then the flags for the members of that group are also set to ‘No’.
• If the row is a detail row or forms part of the sub-group of another group then the ‘Include in gross up?’ flag can be changed from ‘Yes’ to ‘No’, and vice versa, regardless of the value of the ‘Include in gross up?’ flag for the parent of the group.
• Where some members of a group have the ‘Include in gross up?’ flag set to ‘Yes’ and others have the flag set to ‘No’ (or ‘Partial’) then the system will set the ‘Include in gross up?’ flag for the parent of the group to ‘Partial’.

'Repayments Details' tab

Click on the ‘Repayments Details’ tab to make that the active tab

This screen is used to set the repayment options for this employer. The ‘Select alternative address’ hyperlink will only be active if there are two or more addresses held within the Contact.

Where there is an address within the Contact with an ‘Address Type’ of ‘Repayment’ then that address will be used to populate the ‘Repayment Address’ field. If not the ‘Main’ address will be used to populate the ‘Repayment Address’ field.

'Bank Details' tab

Click on the ‘Bank Details’ tab to make that the active tab.

Where the repayment is going to be repaid into the employer’s bank account then those details can be entered on this screen.

Accessing the 'Expat Employer'

The Expat employer can be accessed in a number of ways:

• From the ‘All Employers’ home page control;
• From the menus by selecting View > Employers (which brings up the ‘List of employers’ tab; or
• By opening the Contact/Client and clicking on the ‘Employer Details’ tab.