Don’t know your HRIS from your HRMS? Discover the meaning of the latest UK payroll and HR terms and abbreviations with this free glossary.
Financial management Financial management is when an organisation organises its financial resources. A senior financial manager will take charge of planning, directing, monitoring, organising and controlling resources to meet business objectives and return maximum value to stakeholders. It involves devising a financial plan and establishing procedures to collect data and make financial decisions.
Fines Fines are penalties issued by HMRC if the FPS isn’t filed on time, the expected number of FPSs weren’t sent, or an EPS wasn’t sent to indicate that no employees were paid in a tax month. The size of the fine will depend on the number of employees in your company. It ranges from £100 to £400.
Fixed assets Fixed assets are what a company buys for long-term use – such as machinery to manufacture goods, land, or buildings. Fixed assets aren’t expected to be turned into cash, except in exceptional circumstances.
FPS The Full Payment Submission (FPS) is sent to HMRC every time you pay one or more employees with details about your employees’ pay and any starters or leavers. HMRC can now keep updated with your payroll and your employees’ tax and National Insurance. FPS can only be sent using payroll software.
Fringe Benefit A fringe benefit is an extra benefit on top of the wages provided to an employee. They can include health and life insurance, a holiday, company car, and public transport subsidies that may be taxable or non-taxable.
FTE FTE stands for full-time employee, someone who works between 35 and 40 hours per week for a company. In return, they receive a salary and are entitled to benefits that casual, freelance, part-time or temporary workers aren’t eligible for. These include annual leave, sick leave and health benefits.
Full Payment Submission Every time an employer pays an employee, a Full Payment Submission must be sent to HMRC, on or before the date the employee is paid. HMRC will use this submission to calculate how much PAYE and National Insurance contributions (NIC) liability is due from employers every tax month.
Fully managed payroll Fully managed payroll is when a business outsources their payroll to an external expert, rather than using inhouse staff. The benefits of fully managed payroll include saving time, reducing fixed overheads, ensuring compliance and migrating payroll to an automated system for greater transparency and productivity.