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What is full payment submission (FPS)?

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A full payment submission is a document companies with UK employees need to submit to the government or tax authorities every payment period. The document is used to ensure that the right amount has been deducted from an employee’s payroll payments for tax purposes.

If employers don’t submit this document in time, they can face penalties and fees and potentially even legal action.

What goes in a full payment submission?

What goes in an FPS will depend on the country and jurisdiction, but common points tends to include the following:

  • Employee details (national insurance number, address, and name)
  • Gross pay amount
  • Net pay amount
  • Details on bonuses and commissions
  • Deductions, including things like income tax and student loan repayments
  • Taxable benefits, like company car or health insurance
  • Pension contribution details
  • Employer’s reference number for tax authority or government

What’s the difference between FPS, EPS and RTI?

FPS, EPS, and RTI can sometimes become jumbled. We go through the differences in the definitions below:

FPS (Full Payment Submission)

FPS is a document that’s submitted to the tax authority every time payroll is processed. It includes information on employee payments and tax deductions.

EPS (Employer Payment Submission)

EPS is also a document that’s submitted to the tax authority and government. However, it’s used to report adjustments to the tax that had been paid in the current tax year. That means that if an employer overpays one period, they can reduce the payment in the next period using an EPS document – or vice versa.

RTI (Real Time Information)

RTI is a system that the UK introduced in 2013. It allows employers to submit payroll information to the tax authority and government in real time. This can present itself as an easier alternative compared to periodically sending these forms.

Employment tax forms around the world

Employment tax forms are not unique to the UK. In Japan, for example, employers are required to submit what’s called a Blue Form to the National Tax Agency every month. In the US, meanwhile, employers need to submit a Form 941 to the IRS on a quarterly basis.

In terms of effectively managing these types of forms without risking fees or penalties, companies with global workforces can rely on third-party providers to navigate the tax and compliance ecosystem and ensure that each form is filled out accurately regardless of the country in which the employee resides.

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