One of the biggest concerns for payroll operators with RTI is "What happens if the RTI submission is wrong?".
The regulations state that the RTI file must be transmitted before or at the time of the payroll period update. With most payroll software the RTI transmission and the payroll period update will be part of the one process. However, it can be fairly common for the update to occur and then the operator realises that something was missed, like an overtime amount or some promised bonus. At present (prior to RTI), all the operator has to do is reverse or correct what they have just processed. But how would RTI deal with this?
This very scenario was one of the main issues brought up by us and other payroll software developers during the various RTI workshops organised by HMRC. It would be unworkable if there was some complicated resubmission process. Also, the periodic payroll processing would become very stressful if the implication of getting it wrong every now and again was a lot more work.
HMRC took this on board and conceded that once the year to date figures in the next RTI submission were correct, then the employer's obligations have been met. There is also a procedure in place if an incorrect RTI submission is made for a final pay period (e.g. week 52 or month 12).
The year to date or cumulative amounts are the most important items in the RTI submission with relatively minor importance being placed on the pay or tax figures for a particular pay period.
So, all of you payroll operators can relax. You are allowed to be human now and again!