What is an Employer Payment Summary (EPS)?

An Employer Payment Summary (EPS) is a form used in the United Kingdom that employers submit to HMRC (Her Majesty's Revenue and Customs) to report adjustments to their national insurance liability. It is used in conjunction with the Full Payment Submission (FPS), which provides details of payments and deductions made to employees throughout the tax year.

When should I submit an EPS?

An EPS should be submitted under specific circumstances, including:

• Apprentice levy adjustments.
• Reporting statutory payments.
• Declaring CIS (Construction Industry Scheme) deductions suffered.
• When employees have not been paid within a tax month (e.g., due to temporary business closure or seasonal operations).
• When employees will not be paid in future months.

While it is not always mandatory to submit an EPS, it is considered best practice to do so, even if there is nothing to report, for auditing purposes.

How often should I submit an EPS?

The frequency of EPS submissions depends on your company's payroll cycle. If employees are paid on a weekly basis, you can submit an EPS weekly, and if they are paid monthly, you can submit it monthly.

Are there similar concepts to EPS in other countries?

Yes, other countries have their own processes for reporting payroll taxes:

• In the United States, employers are required to submit Form 941 quarterly to report payroll taxes to the IRS, including details on social security tax, federal tax, and Medicare tax.
• In Australia, the Single Touch Payroll System is used, where employers report all payments made to employees, and the reports are sent to the Australian Taxation Office.
• In Canada, employers report payments to employees using the Payroll Deductions Online Calculator and Payroll Deductions Tables.

How can a global payment distribution platform assist with payroll reporting for a global workforce?

Managing payroll reporting for a global workforce can be complex due to varying regulations, processes, and deadlines in different countries. A global payment distribution platform can streamline the process by offering services such as compliance expertise and currency conversion, ensuring that organizations can effectively manage their global payroll reporting requirements.