Employer payment summary (EPS) submissions and P32 payments

Summary

Learn what an EPS includes and how it affects your P32 payments in Sage Payroll.

Description

You submit an EPS to HMRC to report values that reduce your liability. The values can affect the payments you make to HMRC on a monthly or quarterly basis. The P32 shows you the breakdown of these figures and what you owe HMCR.

NOTE: Submit EPSs in chronological order to ensure the recorded values on the P32 are correct

What is the difference between an EPS and a P32?

An EPS is a submission that goes to HMRC. It includes any figures that reduce your liability to HMRC for that reporting period. Sage doesnt' submit this automatically. This is because you need to answer questions and possibly enter figures manually.

▼About the EPS

It tells HMRC if you’re classed as a small employer. This effects how much of any statutory payments made you can recover
It reports the actual values of statutory payments made and how much you're reclaiming
It reports figures of any Employment Allowance claimed from HMRC
It reports figures of any year to date CIS withheld
You can only submit it once per reporting frequency
The option only becomes available once all pay runs in the period have been processed

A P32 is a report that shows the breakdown of your liability yo HMRC. It uses the figures from your FPS, and offsets them against the figures from your EPS

▼About the P32

The report is for your reference and doesn't go to HMRC
You can generate it as many times as is needed
Any changes to a pay run you have already processed, will show in the next P32 report
For more information, read The P32 Employer Payment Record

How are they linked?

A P32 relies on the figures from your EPS, therefore you should always submit your EPS before generating your P32. Next periods EPS will then reference what shows on the previous P32.

▼What happens

Submitting the EPS closes the P32 reporting period and updates the status of your Employment allowance claim on the P32
The P32 carries a running total of allowance left to claim, claimed this period and the balance carried forward to the next period
It allows you to see any values that carry forward from a previously closed P32 period. This occurs if corrections are made to a pay run in a previous P32 period
Shows your year-to-date values of your Statutory payments and compensation reclaimed

Resolution

How do I submit the EPS and run the P32 report?

Select Summary from the menu bar.
Under HMRC Real Time Information (RTI) Scheme, identify the heading EPS submission.
Select Action and then either Record payment / EPS or View P32.

For more information, read either Exporting your P32 or Record your P32 payment details and submit an employer payment summary (EPS).

Why is the option called Record payment / EPS?

Sage combines two processes into one action. There are three windows to complete before you can submit your EPS. You must review the information at each stage to ensure you submit the correct information and therefore your P32.

1. P32 PAYMENT

You must answer questions relating to Small employers relief and Employment allowance. What you select will change what you owe HMRC
You can adjust the Record amount paid to HMRC figure if what you will pay them differs to what Sage Payroll has calculated. For example, your balance with HMRC is in credit. This records in Sage for future reference and posts to Sage Accounting if your have Payroll integration enabled
You must select a Payment date. This is either the date you have already paid, or are planning to pay them. It’s again saved in Sage Payroll and Sage Accounting if applicable

2. BALANCES

The only field you can edit is for Amount of CIS Deductions suffered under Year to Date (incl. this period). Leave blank if you don’t operate a CIS scheme
The figures for Total Recovery and Compensation for Statutory Payments are generated by what you have already processed, and whether you’re a small employer

3. POST P32 VALUES

You may not need to submit an EPS for every period. You’ll see if its required here
What you have already processed in the pay runs, and the information on the previous two windows will determine this

Once you’re happy with the information, select Submit.