What is a Full Payment Submission (FPS)?

A Full Payment Submission (FPS) is a document that companies with UK employees must submit to the government or tax authorities during each payment period. It serves the purpose of verifying that the correct amount has been deducted from an employee's payroll payments for tax-related purposes.

Why is it important to submit an FPS on time?

Failing to submit an FPS on time can result in penalties, fees, and potential legal actions for employers. Timely submission ensures compliance with tax regulations and accurate reporting of employee payroll information.

What information is included in an FPS?

An FPS typically contains the following details:

• Employee information (national insurance number, address, and name)
• Gross pay amount
• Net pay amount
• Information on bonuses and commissions
• Deductions, including income tax and student loan repayments
• Taxable benefits such as company cars or health insurance
• Details of pension contributions
• Employer's reference number for tax authorities or government

What is the difference between FPS, EPS, and RTI?

The terms FPS, EPS, and RTI are related to payroll reporting in the UK:

• FPS (Full Payment Submission): It is submitted to the tax authority every time payroll is processed and includes information on employee payments and tax deductions.
• EPS (Employer Payment Submission): EPS is used to report adjustments to tax payments made in the current tax year. Employers can use EPS to correct overpayments or underpayments made in previous periods.
• RTI (Real Time Information): RTI is a system introduced in the UK in 2013 that allows employers to submit payroll information to tax authorities and the government in real time. It simplifies the process of reporting payroll data compared to periodic submissions.

Are employment tax forms unique to the UK?

No, employment tax forms are not unique to the UK. Different countries have their own requirements for payroll reporting. For example, in Japan, employers must submit a "Blue Form" to the National Tax Agency monthly. In the United States, employers need to submit a "Form 941" to the IRS quarterly.

How can global companies manage various employment tax forms effectively?

Global companies with a diverse workforce across different countries can benefit from third-party providers who specialize in managing tax and compliance requirements worldwide. These providers can ensure accurate and timely submission of each form, regardless of the country in which the employee is located, reducing the risk of penalties and fees.