Composite Service Companies

[Former Member]

Hi,

I am involved with an organisation that has transferred all its UK employees into a Guernsey based composite service company. The employees pay or seem to pay UK PAYE and employees NI but the employer pays no NI.

Has anyone come across this before?

Are there any issues regarding tax year end submissions?

Are there any other issues that need to be considered?

[Former Member]

Hi Taj

SAP UK payroll does not support Guernsey. Hence you cannot run payroll for Guernsey in SAP unless your client has created a special schema or included the tax & NI calculations for Guernsey employees.

For Guernsey employees you need to create infotype 570 and 571. Check with your client where they would be running payroll for these employees. The same system should be able to produce end year submission reports.

Hope this helps

Regards

UR