paiyroll® can be used to set up employees who are not subject to HMRC PAYE or CIS Tax. Examples are self-employed Actors or Musicians who work as sole traders or limited companies.
Setup #
The different types of workers are specified as follows:
| Type | Pay Item Editor > Show Statutory Pay Items | Pension Pay Item | Employees > Details > Tax > CIS | Payslip |
|---|---|---|---|---|
| PAYE (HMRC) | Standard set (AWE Sink, AWE Source, CIS, GB Liability, NIC, PAYE) imported or added automatically by adding AE | AE (Auto Enrolment) | No | Standard payslip |
| CIS (HMRC) | Standard set (AE, AWE Sink, AWE Source, CIS, GB Liability, NIC, PAYE) imported or added automatically by adding AE | CIS sole trader, partnership, trust or company | Construction Industry Scheme Payment and deduction statement | |
| Non PAYE or CIS (No tax) | AWE Sink and AWE Source only – ensure all other Statutory Pay Items are deleted | AE (Auto Enrolment) can be used | CIS sole trader, partnership, trust or company | Standard payslip |
Errors #
Incorrect CIS Payment and deduction statement payslip #
If you have incorrectly added a CIS Pay Item, this will generate a CIS Payment and deduction statement payslip, and the Live Payslip shows Tax basis “CIS verified -“. To correct this, you will need to remove the CIS Pay Item and clear the employee’s CIS state:
- Pay Item Editor > Show Statutory Pay Items > Delete the CIS Pay Item using the Trash icon
- Click Update/View payslip
Clear the CIS employee state:
- Employees > search or select the employee > Update
- System tab Click + State
- Enter “CIS” in the Search field (right) to filter only the CIS keys (which should all be zero)
- Select or double-click) each of the 3 CIS Keys and click Delete
- Click Delete when asked: Are you sure you wish to delete 1 row?
- Click Update to save the employee changes
The employee CIS state has been deleted. After a Pay Run Redo, the standard payslip will be visible.