Our Partner Pegasus Software has announced an important change for users of Pegasus Opera 3 Payroll.
In the Autumn Statement of 2023, the Government confirmed a reduction in the Class 1 National Insurance Contribution (NIC) rates from 12% to 10%, applicable from the 6th January 2024. As a result of these changes, Pegasus plan to release a mid-year payroll release of Opera 3 (2.95.50) for all variants to cater for the new legislation.
This release of Opera 3 2.95.50 (all variants) will include the necessary updates to the Opera 3 PAYE/NI/Stat. Payments tables and software changes on how Directors National Insurance should be calculated for the remainder of the 2023/24 tax year.
- If you run Payroll AND have Directors on the Payroll a full upgrade will be required. Please note that directors who are classed as “S” type directors will also need the full upgrade.
- If you run Payroll and DO NOT have Directors on the Payroll then you will need the Copy NI Rates Utility installed.
Pegasus plan to release during week commencing 11 December for general distribution to Partners.
Users can use the flow chart below to help identify whether they are affected and what action to take, there is also an FAQ below that might answer any questions you may have.
Q: Do I have to upgrade to Opera 3 2.95.50?
A: Yes you have to upgrade if you have directors on the Payroll. However, if you only process employees i.e. no directors on the payroll, then you can use the stand alone Copy NI Rates Utility which will be available to download from the Infor Support Portal and then run the Payroll-Utilities-Copy Statutory Rates from the payroll application of your current software version.
Q: Do you need to run an Update Data Structure (UDS) after installing Opera 3 2.95.50?
A: A UDS is not required if upgrading from 2.95.00 or later.
Reminder: Opera 3 SQL SE will update the table structures automatically when the SE service restarts following the successful upgrade. The rate can also be automatically deployed if the ‘Auto-deploy payroll statutory rates upon system upgrade’ option within SAM is switched on.
Q: What about directors who are not paid as directors (i.e. “S” type directors)?
A: They will still need the full software upgrade – Opera 3 2.95.50.
Q: If we UDS this version, will we also have to run a UDS for the full Payroll Update release in 2024 as well?
A: Yes, the Opera 3 2.96.00 Payroll 2024 release will require a UDS.
Q: If I choose not to run UDS how do I use the new set of NI rates?
A: Run Payroll – Utilities – Copy Statutory Rates and select ‘Set to System Default’. It is best practice to check that the new tables have been successfully deployed.
Please note: for Opera 3 SQL SE you can use the ‘Auto-deploy payroll statutory rates upon system upgrade’ option within SAM (switching the option on prior to upgrading to 2.95.50 will automatically deploy the new tables when the SE Service re-starts following the successful upgrade).
Q: When should the new NI rates be deployed?
A: The new tables can be immediately deployed but must be in place before any payroll runs with a date of 6 January 2024 or later. Therefore, we suggest that weekly payrolls are actioned as a priority.
Q: Does Opera 3 2.95.50 support the NICs rate changes for Termination Awards and Sporting Testimonial Payments?
A: The rates for these payments have not changed.
Q: What do you need to consider if you need to make an employee NI backdated adjustment?
A: The Adjust NI function in Payroll – Utilities can continue to be used for current-year changes.
Q: What do you need to consider if you need to make an employee Statutory Payment backdated adjustment?
A: If the Statutory Payment adjustment relates to the current tax year (from 6 April 2023) then the customer can use the Statutory Payment function in the Payroll – Payroll Processing – Action menu as normal.
The Next Step
Next, you will need to contact us to book an install date for your upgrade. Please click the link below to book your appointment. We advise you to book in as soon as possible to avoid disappointment. We will endeavour to keep that date, if at all possible.
To upgrade the server and clients (including all internal testing, client updates, backups and UDS) – £275.
Please be aware that we will need the admin password. It’s advisable you make your IT support provider aware of the date we will be upgrading so if we do need any additional details, they know to expect our call.
If you do not have Directors on the Payroll, you will not need a full upgrade at this time. The Copy NI Utility will be available for us to install for you during December 2023. The usual cost of £99 for installation will apply.
Want more information on Pegasus Opera?
To learn more about anything in this news article, or to book a demo, please contact the Synergy team today. You can call us on 0345 456 0050 or send us an email via our contact page at any time and we will be delighted to assist you.
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