You can configure Dayforce to generate tax and NI records automatically for employees if the information is missing in their employee profile in the Payroll > Tax Definitions screen in People. This functionality is useful when a new hire doesn't provide new starter declaration details in time for pay run processing. When you calculate or commit a pay run in Payroll, Dayforce identifies the employees in the pay group without active tax or NI records. In the UK Tax Info and UK NI Info sections, a record is automatically generated for the employee using predefined default values.
Enable Automatic Records for Pay Groups
Default Tax and NI records are only created for employees who are in pay groups with the Use Default Starter Declaration property enabled. To configure the property:
- Go to Pay Set-up > Pay Group and select a pay group.
- Click the Payroll Properties tab.
- In the Properties section, select the Use default Starter Declaration checkbox.
- Click Save.
When the checkbox is selected, Dayforce does the following:
- If there are current entries for UK tax or NI information in the employee's record, they aren't changed.
- If entries with a start date in the future are found, a current record is generated with the Effective To field set to the day before the future entry becomes active.
- If no current or future entries are found, Dayforce creates records with the predefined default values. See the reference tables below for more information about the default values that are used in the generated records.
When the checkbox is cleared, you have to add any missing records manually before you can commit the pay run.
Default Values in Automatic Tax and NI Records
| Field | Default Value |
|---|---|
| Effective From | The pay date or pay period end (whichever is greater) for the pay run in which the record is generated. |
| Change Reason | Set to Auto Updated. This change reason can’t be selected manually, and is only used when Dayforce updates the employee record. |
| Starter Declaration | Set to C. |
| Legal Entity | The legal entity associated with the pay group. |
| Tax Code | Set to 0T. |
| Tax Basis | Set to Week1/Month1. |
| Field | Default Value |
|---|---|
| Effective From | The pay date or pay period end (whichever is greater) for the pay run in which the record is generated. |
| Change Reason | Set to Auto Updated. This change reason can’t be selected manually, and is only used when Dayforce updates the employee record. |
| Legal Entity | The legal entity associated with the pay group. |
| NI Letter |
One of the following letters is assigned, based on the employee’s age:
|