After generating Revenue Payroll Notifications (RPN), to put an employee on an exclusion order, you need to enable the P35 Levy Exclusion option in PeopleXD Payroll.
To do this, follow the steps below in Portal.
From the dashboard menu, click Payroll Dashboard.
Click Employee then in the search field, search for the employee.
Highlight the relevant employee then click View.
Click Tax Details then turn on the P35 Levy Exclusion toggle.
To save changes, click Save.
📌Note: Check if the employee needs to pay USC; if not, change the Universal Social Charge (Emergency Basis) USC status to exempt on the Tax Details screen.
Enable Enhanced Tax Exclusion toggle
The reason no PAYE refund is being generated for the employee under a tax exclusion order is due to a system configuration setting for Enhanced Tax Exclusion.
If it were enabled, the system would automatically generate a PAYE refund for the employee when required. For example, if an employee has had PAYE deducted and is now tax excluded, check the Enhanced Tax Exclusion setting.
To do this, follow the steps in portal.
From the dashboard menu, click on Payroll Dashboard.
Click Settings then under General, click System Configuration.
Click Payroll Validation/Update.
📌Note: We recommend testing any significant system changes, like enabling this setting, in your User Acceptance Testing (UAT) environments before applying them to the live environment.
This is important because enabling the Enhanced Tax Exclusion setting will affect employee payslips and PAYE submissions, which you may wish to review.
If you decide not to enable any changes, a manual adjustment will be required each time a Revenue Payroll Notification (RPN) is retrieved. The system does not anticipate any RPNs for those on tax exclusion, so if Revenue is sending these notifications, you'll need to inquire about the reason.