CSLM9025 - Compliance: employer compliance: employer compliance - walk through tests
References on this page to P14/P35 applies to years before the introduction of Real Time Information (RTI). For RTI years, reference should be made to Full Payment Summary (FPS) submissions.
The subject is presented as follows
Walk through tests
Payroll walk through
Remittance walk through
P35 walk through
Scrutiny of cash / petty cash records
Walk through tests
Employer Compliance caseworkers should undertake a walk through test of each system operated by the employer, see COG905090. This includes tests to ensure that student and or postgraduate loan borrowers have been identified and the correct deductions have been made and returned.
Walk through templates are available on SEES on which to record the walk through tests. However, where you decide the use of the templates is not appropriate, you must ensure that the test is undertaken and the same level of detail is recorded.
In addition to the specific student loan walk through test, EC staff should also ensure that their payroll and remittance tests include a period where student and or postgraduate loan deductions were made.
Payroll walk through
Where you have established that the employer has been authorised to make Student and or Postgraduate Loan deductions or you have identified deductions in the pay records they should select
- At least one borrower to form part of the reconciliation check
And
- If possible, this borrower should be one of the key employees
Note: Large Business Service Employer Compliance checks should include at least one borrower per location, where appropriate.
You should check that Student and or Postgraduate Loan deductions have been calculated under the correct loan and or plan type and deducted correctly. In particular, ensure that the employer has
- Deducted on a non-cumulative basis
- Paid attention to the pay thresholds before making deductions
And
- Calculated deductions on the gross pay liable to NIC and not the net, after Class 1 NICs have already been deducted
Remittance walk through
You should check that
- The correct amount of Student and or Postgraduate Loan deductions have been paid to HMRC
And
- Compare the remittance with the BROCS printout, cashbook and other records
Note: There is no separate section for Student and or Postgraduate Loans on the BROCS printout. They are included in the total for tax.
The results of this check should be recorded in the case papers.
P35 walk through
You should compare the total Student and or Postgraduate Loan deductions recorded on a sample of P11s with the total figure returned on the P14s. If the employer cannot provide copies of the P14s you should continue this check at the office.
Where a P11 shows that more was deducted than entered on the P14, you must extend the check to all CSL employees.(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
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Scrutiny of cash / petty cash records
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
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(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
- (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
- (This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
- (This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000) CSLM9030