- CWPS New Calendar Year and Increase in CWPS Rates (From October 1st)
CWPS New Calendar Year and Increase in CWPS Rates (From 1st October) Explained:
The Calendar year for the Construction Workers Pension Scheme is changing. In previous years it has been a ‘Jan – Dec’ year. From 1st October 2019, they will be changing it to an ‘Oct – Sept’ year. Due to the new CWPS calendar year, the CWPS Rates will be increasing.
V22.4 supports those increases to the Construction Workers Pensions Scheme (CWPS) which come in to effect from 1st of October 2019. When installed, the update will immediately apply increases in CWPS Pension, Sick Pay and Death in Service contributions. If this applies to your payroll, then this update will help you to remain compliant. Please note though, that this update will need to be installed on a particular period so as not to apply the increases too soon.
You will need to carry out the following steps to complete the update:
- Choose the Appropriate Period to Run the Update
- Backup Your Payroll
- Download & Install The Update
- Set up the new CWPS Tax Year Calendar
- Set your Applicable Period (‘Period Date’ must be on or after 30/09/2019)
- Browse The New Rates & Check Categories
- Clear the CWPS Balance History
- Run your CWPS Report (1-52) to confirm it is blank.
Steps 1-8 are detailed below:
1. Choose the Appropriate Period to Run the Update:
If the increase in CWPS rates effect your payroll, then it is imperative that you install the update at the appropriate time. At the moment you install the update, the CWPS Rates will change in your payroll software. As the rate increase is only applicable from 1st of October 2019, you should wait to install the update, until prior to your first October payroll. That is, the first payroll where ‘Pay Date’ is an October 2019 Date (See ‘Pay Date’ in Image Below).
You can check this in advance, by clicking the ‘Company/Payroll’ menu at the top of the screen, and choosing ‘Calendar’. In the example below, it would be appropriate to run the update and set up the new CWPS Calendar at End Of Period on Period 38. This way the new rates and new CWPS Calendar will exist before setting period 39, which in this example is the first applicable period.
Note On ‘Period Date’: Your ‘Period Date’ must be on or after 30/09/2019. This date (30th Sept) is the start date for the new CWPS Calendar. If your period date is prior to this, your CWPS contributions will not report into the correct period. (See ‘Period Date’ in Image Below).
Your payroll(s) may differ to this example, so check the calendar in each of your payrolls, before processing timesheets.
2. Backup Your Payroll
We recommend to take a backup of your payroll data, in your usual manner, before running an update.
3. Download & Install The Update:
As per step 1 above, make sure you have chosen the correct moment to install the 22.4 update, as the CWPS Rate Increases must not be used until your appropriate period. Once you have identified the moment you need to run the update in, you can click the link below to download the update. Run the update in the usual manner.
4. Set up the new CWPS Tax Year Calendar:
In order to comply with the new CWPS calendar year format, you will need to set up a new CWPS calendar. To do this:
- Click on ‘Company/Payroll’ menu.
- Choose the ‘Construction Workers Pension’ option.
- In the window that is presented click on the ‘Calendar’ tab.
- In here click on the ‘Create New Calendar’ button.
- Enter the start date of 30/09/2019 (This is the Monday of the first week of the new CWPS calendar).
- Click ‘Create’
- Click ‘OK’
5. Set your Applicable Period:
Set you applicable period number. ensure that your ‘Period Date’ is on or after 30/09/2019. This date (30th Sept) is the start date for the new CWPS Calendar. If your period date is prior to this, your CWPS contributions will not report into the correct period. In the example above, this is period 39. Your applicable period may differ to this.
Note On ‘Set Period’: When you click ‘Set Period’ make sure that the ‘Week To’ and ‘Week From’ fields in the ‘CWPS’ area of the screen are: both equal to ‘1’ if running a weekly payroll, or show From ‘1’ To ‘4’ if running a monthly payroll. If this is not correct, then your CWPS data will report to the incorrect CWPS ‘Pay Week’.
6. Browse The New Rates & Check Categories:
After you have set the period, browse the CWPS categories & new rates under the ‘Company/Payroll’ menu – ‘Construction Workers Pension’ option.
The three Active Categories are: POC (Pension Only no DIS), SPB (Pension/Sick Pay) and SPI (Standard Contrib + Industry Additions). Other earlier categories are no longer in use.
It is also advisable to browse your employees, and ensure that they are assigned to the correct category. To do this:
Choose the relevant employee in ‘Employee Details’, Click ‘Deductions’ Tab, Under ‘Construction Worker’s Pension Scheme’ select the correct category from the drop down list. Click Save.
7. Clear the CWPS Balance History:
- From the menu bar at the top of your window, click Year End then click New Construction Pension Year.
- When you receive the prompt to clear the balances and history, to continue, click Yes.
8. Run your CWPS Report (1-52) to confirm it is blank:
- Click ‘Other Reports’
- Choose ‘Construction Pension’ on the left hand side.
- Click ‘Preview’
- There should be no data for any ‘Pay Weeks’ in the report.
Once you have carried out steps 1-8 above, you can continue to process your timesheets & do End Of Period as normal.
Check your CWPS Report after EOP to view contributions at new rates for CWPS Week1.