PSA6040 - Using the Employer Compliance System (ECS) for PSAs: Recording a PSA Charge on ECS

PSA2040 explains what action to take when the employer provides you with a calculation of the amounts payable on a PSA and how to create a charge through SAFE.

To record the PSA charge on ECS you must take the following action

  • go into the PAYE Settlement Agreement screen
  • select all the items showing status ‘Included’
  • click on the Charge button

Your selected item will be displayed at the top of the screen

  • enter the number of employees in each rate band for the item displayed
  • enter the expenditure incurred by the employer in providing the item to each employee for the year of the PSA, or
  • enter the total expenditure incurred by the employer in providing the item selected for the year of the PSA.

Total Item Value

The Total Item Value (overall cost for the year) is calculated when you Tab from the Item Value field.

Next 

The Next button will take you to the next entry in the list of items included within the PSA for the selected employer and year.

Previous

The Previous button will take you to the previous entry in the list of items included within the PSA for the selected employer and year.

OK

The OK button saves details of the charge on the selected item and returns you to the PSA screen for the selected employer and year.

The charge details are now recorded in the PSA screen.

Cancel

The Cancel button returns you to the PSA screen for the selected employer and year with no changes to any fields or values.

NIC CLASS 1B

The NIC Class 1B section allows you to calculate NIC Class 1B. NICs are calculated automatically by selecting one of the three options displayed in the charge screen

  • Tax and Item Value
  • Tax and Adjusted Item Value
  • Tax.

The system will automatically default to the option Tax and Item Value. If you wish to change this default select one of the other two options.

To select Tax

  • select the radio button.

NIC Class 1B will be calculated on the PSA tax only.

To select Tax and Adjusted Item Value

  • select the radio button then
  • click on the Adjust Value button to go to the Adjusted NIC Item Value screen
  • adjust the value to the reduced amount on which NIC Class 1B is payable
  • click on the OK button to accept and return to the Charge screen.

Cancel

The Cancel button will return you to the Charge screen with no changes to any fields or values.

Recording a Settlement

When the charge has been determined the PSA can be finalised by recording a settlement.

To do this

  • click on the Update button to go to the Update PSA screen (PSA6030 refers.)
  • enter the date of settlement in the settlement field

Note: The settlement date must be recorded before the computer will allow you to record the Settlement Type

  • select Payslip from the drop down menu
  • click on the OK button.

A charge reference will be displayed but this is superfluous as the PSA charge has been created through SAFE.

Note: The charge details for the year must be more than zero before the computer will allocate a charge reference.