Org Setup for UK Payroll

There are a number of configuration selections specifically for UK payroll that include settings for culture, organisation, legal entities, tax authorities, taxation parameters, pay groups, and pay calendars.

The general process flow for setting up an organisation in the United Kingdom to use the Payroll feature is:

• Add the UK English culture for your instance of Dayforce
• Set up your instance for international operating locations
• Set up pay group payroll properties
• Configure earnings and deductions for UK employees
• Configure taxation parameters

Site Setup - English (United Kingdom) Culture

When setting up an instance for UK payroll, you or an implementation consultant must add the English (United Kingdom) (sometimes shown as British) culture—which is shown as en-GB in the Name column—to the instance.

To add the en-GB culture to a customer instance:

1. Go to Site Set-up > Client and click the Cultures tab.
2. Click Add.
3. In the Culture drop-down list, select English (United Kingdom).
4. Select the checkbox in the Default column, if this is to be the default language for the instance.
5. Click Save.

Setting this also allows users to set their personal preferences to British English.

Organisation Setup - International Operating Locations

In addition to the standard organisation configurations, there are some optional selections specifically required for UK payroll.

To set up your organisation for UK payroll:

1. Go to System Admin > Client Properties and click the Properties tab.
2. In the General section, locate the Client Operating Locations drop-down list and ensure that International is selected.
3. Locate the Hide $ symbol checkbox and ensure that it's selected.
4. Click Save, then click Refresh.

Pay Group Set Up - Payroll Properties Tab

Before You Begin: For instructions on creating and configuring pay groups in Dayforce, see "Pay Setup" in the Dayforce Implementation Guide. This topic only describes the specific settings in the Payroll Properties and Pay Calendars tabs that are required to set up a pay group for the UK.

1. Go to Pay Set-up > Pay Group and click the Payroll Properties tab.
2. In the Country drop-down list, select United Kingdom. This selection automatically populates the Tax Year Start Day and Tax Year Start Month with 6 and April respectively.
3. Click Save, then click Refresh.
4. Click the Pay Calendars tab.
5. Click Generate.

Configure Earnings and Deductions for UK Employees

The following two topics describe where you can configure earnings and deductions for UK payroll: 

• UK Payroll Allowances
• UK Payroll Deductions

Configure Taxation Parameters in the Legal Entity

Taxation parameters for UK legal entities are configured in the Taxation Parameters tab of Org Set-up > Org Payroll Set-up > Organisation. The reference numbers configured in the Taxation Parameters tab are required to send NI and tax information to HMRC and the Centralised Attachment of Earnings Payments (Caps). For more information, see UK Taxation Parameters.