The menu option ‘Members, Payroll’ is only visible if you subscribe to the Omni PAYE Module.


The scheme administrators should ensure that all necessary data is entered under ‘Members, Pensions’ before the PAYE is processed.


The Pension Payroll Processing (Payroll Schedule) uses all of the data from that screen to produce a list of the gross amount of all pensions due in a month. This schedule can then be passed to the person responsible for the PAYE, who then ensures that all the data described below is correct before processing the PAYE. This ensures that the correct amounts net of tax are paid to the correct bank accounts.


New Payroll Member


To add a pensioner to the payroll, the member needs to have a status of ‘Pensioner’ and the Payment Method on the ‘Basic Data’ tab of the ‘Members, Payroll’ screen needs to be present.


Tax Year Data


When a new pensioner is added to the Payroll, the first Tax Year record should be entered using the First Tax Year button. A comment can be added for each tax year. The tax code for that year can then be entered.


At the start of each new tax year, a new tax year record should be created globally for all pensioners, by the Master User, using the System menu. This creates a record for all members that are not archived in schemes where the status is ‘Live’ or ‘Pensioners’, where ‘Which Payroll’ is ‘Omni’ and there is no date in Date Pension Ceased field. The list of records generated should be checked and if any pensioners were missed, the data can be changed and the program re-run. When re-running it will not duplicate records that have already been created.



Tax Code and Interval


The ‘Latest tax code’ field should be updated as it changes. The tax code used for each month’s tax is stored in the monthly payments grid and so any tax code changes can be seen.


The Pay Interval can be different from the frequency of pension payments. The Pay Interval should follow the HMRC definition (set out in the PAYE guide – CWG2) and is not necessarily the member’s choice. For example, if a member decides to draw £10,000 once a year and the pension limit is £10,000 then there is no scope for further payments and it could be argued that the pay interval should be ‘Yearly’. However, if the pension limit is £20,000, the member has the option of drawing further pension at any time and so a monthly Pay Interval may be more appropriate than yearly.


If ‘Month 1’ is ticked then this overrides whatever is entered in Pay Interval.


Member’s Personal Bank Account


The details of the bank account that will receive the member’s pension should be entered in the ‘Member’s Personal Bank Account’ panel – this is the account that receives the net pay and not the scheme account that pays the pension. This data does not relate to any particular tax year.


The date that any of the details for the Member’s Bank Account were last changed is displayed. ‘Unknown’ is shown if this date was before January 2009. This date cannot be edited, it is updated by Omni automatically whenever anything in that panel is amended. This date is shown on the BACS report so that all recent changes can be checked to see whether they were legitimate.


Processing PAYE


Once the above details have been entered, you should process the PAYE using the ‘Reports, PAYE processing’ option.


Once the PAYE calculations have been finalised and processed, Omni will store the Month End, Gross Pension, Tax due and the tax coding used in that particular month in the grid in the bottom right of the screen.


The grid which stores the payment history cannot be entered manually – it is either auto generated once the PAYE has been processed or changed by additional payments (below).


P45 Received for New Pensioner


The ‘P45 received’ button allows you to enter the Gross pension and tax paid from a previous employer, if the member becomes a pensioner during a tax year.


P45 for Pensioner Leaving


The ‘Issue P45’ button allows you to produce a P45 for a pensioner who leaves the payroll (e.g. an annuity is bought), based on all the payments made in the tax year.  Omni will submit the details held on the P45 with the RTI submission.


Additional Payments


The ‘Manual Payments’ button allows you to make a manual pension payment (either adding to an existing payment for the latest month or a one-off payment for an individual member) and produce a payslip.  An Excel report will be produced confirming the Gross, Net and Tax paid.


If more than one payment is made in a tax month, Omni has to store the amounts paid previously in that month (so that the latest payment can be calculated when reporting to HMRC under RTI). If there are any previous amounts these are shown in the monthly details grid.


If pension is being paid from Trivial Commutation, the Manual Payments option has to be used – for details in Trivial Pensions.




 When Omni calculates the tax, it stores the workings each month. These can be accessed by selecting the appropriate month in the grid and then clicking the Workings button.



See also                Pension Data,

Pension Payroll Processing.