Configure Eligibility for UK Employment Allowance

You can configure the application to claim the Employment Allowance against the NI ER tax paid, up to the statutory maximum each tax year. You configure this functionality at the legal entity level for the ER NI tax.

In the Tax Month Management subtab of the Post Commit Management tab of Payroll, when you select a legal entity and open the Tax Month Preview slide-out panel and click the Tax Month Reconciliation tab, the application displays the Employment Allowance field below the EPS - User Info heading.

Moreover, when you click the EPS Parameters tab of the slide-out panel, the application displays that the customer is eligible for the employment allowance. This setting is read-only and you can only define it in Org Set-up using the steps provided below:

To mark a UK legal entity as eligible for the employment allowance:

1. Go to Org Set-up > Org Payroll Set-up > Organization.
2. Select a UK legal entity from the list and click the Tax Authorities tab.
3. Select the ER NI tax from the list.
4. In the Tax Setting section on the right side of the screen, do one of the following:
   • If there is no current tax record click New and update the Effective Start and Effective End as needed.
   • If there is an existing tax record that is active, select it from the list.
5. Select the Eligibility For Employment Allowance checkbox.
6. If needed, update the amount in the Employment Allowance field, which is automatically populated with the limit for the year.
7. Click Save.