How to correct January 2020 pay runs in relation to the notice issued on February 4th 2020, by the Office of the Commissioner for Revenue in relation to Class 1 Social Security Rates for 2020

As WorkForce Payroll has already been updated to reflect this announcement, you may proceed to adjust any pay runs of January 2020 to align with the notice issued by the Office of the Commissioner for Revenue.

It is important to note that not all organisations will be affected by this announcement as this adjustment relates to the basic salary threshold of category ‘D’ for those persons born up to 31 December 1961.

Should you wish to see the statement issued, please see: https://cfr.gov.mt/en/News/Pages/2020/Adjusted-Class-1-Social-Security-Rates.aspx

Below are 3 possible scenarios that may be encountered if this update relates to any of your employees.

Scenario 1 – Payroll for January has been processed, FS5 for January has been submitted

In this scenario, we recommend you extract a Payroll Analysis Report for January 2020 prior to undoing and reprocess any available pay runs for January. After that point, you may undo and reprocess any pay runs for January and extract a new Payroll Analysis Report to see if there any differences. Should you be uncertain as to what information you should provide with your February FS5, please contact the IRD here: https://cfr.gov.mt/en/inlandrevenue/contact_us/Pages/Contact-Us.aspx

Scenario 2 – Payroll for January not yet processed

In this scenario, please proceed to process payroll normally and extract the FS5 for January. Organisations who have not yet been processed payroll will not be affected as the updates required have already been made to the system.

Scenario 3 – Payroll for January has been processed, FS5 for January has not been submitted

In this scenario, please proceed to undo and re-process any available pay runs for January. After that point, you may extract your FS5 for January and send payment to the IRD accordingly.

Notes in relation to Scenarios 1 and 3:

  • If you find a discrepancy in the NI paid before reprocessing January when compared to the new value, this will need to be included as a post-tax deduction in a February pay run.
  • Reprocess keeping previous parameters. IMP: Do not use the reset button on employees in this case as this will clear all manual additions and deductions.
  • When reprocessing pre-tax additions and deductions will not change.