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Fix errors in QuickBooks Online Standard Payroll

SOLVEDby QuickBooks4Updated 3 weeks ago

Fix errors in QuickBooks Online Standard Payroll

Whether you're unable to submit an EPS to HMRC or finish setting up an employee in Standard Payroll, we'll show you how to get your QuickBooks back on track.

There may be a few reasons why an employee’s SMP may not be calculating or displaying on a pay run as expected:

  • The employee has not earned enough to qualify for SMP. They must be earning at least the Lower Earnings Limit (LEL) of National Insurance to qualify for statutory maternity pay.
    • Note: This can be overridden by the average weekly earnings at the employer’s discretion. 
  • The employee has not worked for the employer continuously for at least 41 weeks before the expected week of childbirth. 
  • Standard Payroll only calculates on full weeks. For example, if an employee starts their maternity leave in the middle of the week, the first few days of that week are pushed to the next week period. 
  • The pay date is within the pay period. HMRC will assume it’s the end date of the period. Use the HMRC maternity, paternity and adoption calculator

See SMP in Standard Payroll for more information.

Here's a list of potential reasons why you might not be able to send an FPS:

  • Make sure you’re using the correct Government Gateway sign in details.
  • National Insurance on the Lower Earnings Limit (LEL) is above Standard Payroll’s maximum threshold. See HMRC’s rates and allowances for more information.
  • If you have a new employee, make sure the Starter declaration section isn’t left blank in the Taxes section of the employee’s record in QuickBooks. 
  • Check to see that you have no invalid NIC letter changes, this includes NI changes for directors made in the middle of the tax year. (For example, letter changes from C to A, or C to J.)
    • NI letter changes in the middle of the tax year are supported for regular employees only.
    • NI letter B is only applicable to women and will require proof before it is applied.
    • For company directors with NI letter changes mid tax year, Advanced Payroll allows you to make these updates at the time of the change. Or, you can keep using the old letter in Standard Payroll and change it at the beginning of the new tax year. You'll need to let HMRC know of these changes.
  • Check that the Account Office (AO) reference/Small Employers Relief is saved. If these aren’t saved, the FPS won’t submit. 
  • A pay type addition was created with a minus value, leading to a negative year to date which the FPS won't allow.

See how to make a FPS submission and how to fix payroll errors when submitting to HMRC.

You can see the status of all your EPS submissions in Taxes > Payroll Tax.

Here are a few things you can check if you're unable to submit an EPS:

  • Make sure you’re using the correct Government Gateway sign in credentials in your Payroll settings.
  • Check that you are submitting between the 6th and 9th of the month following the end of the tax month. QuickBooks will let you know once there's an EPS ready. If you miss the submission window, you can always send one the following month.
  • Make sure Small Employer Relief is selected when reclaimable statutory payments are included on the pay run. 

You can't submit an EPS for the following:

1. Declaring Employer Allowance

To claim Employment Allowance, you only need to send an EPS to HMRC once. This can be at the beginning of the tax year or at any time during the tax year. Once you've made a claim, the EPS will be ready on the 6th of every tax month in QuickBooks and will include your eligibility. 

If this EPS submission is deleted it won't regenerate and the payroll is moved beyond tax period one.

To recreate a deleted EPS submission, you'll need to roll back the pay run to the start of the tax year by chronologically deleting each payroll. 

  1. Go to Settings ⚙, Account and Settings or (Company Settings). 
  2. In Payroll, select Employer NI relief.
  3. Change employment allowance to ‘No, I don’t qualify’ and Save.
  4. Go back to Payroll settings, and change employment allowance to ‘Yes, I qualify’, and Save.

This will recreate the submission and allow you to submit the EPS.

2. Reclaiming statutory payments

To claim statutory payments such as maternity and paternity pay, an EPS needs to be submitted during the same tax period that the SMP/SPP is in during the pay run. 

If there is no option to submit an EPS in the Payroll Taxes page, this is most commonly caused by one of two reasons:

  1. Under Employer NI Relief, the ‘Small employers relief’ and ‘Employment Allowance’ fields are empty in Payroll settings. Simply fill in the fields with either ‘yes’ or ‘no’ to generate an EPS.
  2. Statutory payment is recorded as an additional payment. To be able to file an EPS, you will need to enter the Statutory payment into the employee’s record. To do this in QuickBooks, go to Actions then Employees Leave, and choose the relevant statutory payment.

3. Stopping a Pay As You Earn (PAYE) scheme

Unfortunately you can’t send an EPS to end a PAYE scheme. If you need to stop a PAYE scheme, we recommend speaking to your accountant or reaching out to HMRC directly.

See how to make an EPS submission and how to fix payroll errors when submitting to HMRC

This message usually shows in QuickBooks if you: 

  • try to delete week 12/week 52-3 of the last tax year
  • Made recent changes to your payroll, like add a new employee or created a new pension scheme

Note: Make sure you make a note of all the details in the pay run.

To fix this, delete the new employees before deleting the pay run. Once you’ve made changes to the final period of the final tax year, you can add the employees back in QuickBooks. 

If you’ve created a new pension scheme, try deleting it and then roll back the pay run. If you’re still having trouble doing this, reach out to support for help.

See how to delete a pay run in QuickBooks Online Standard Payroll.

  • If your employee has a custom pension set up, make sure you select the correct taxation method in the pensions settings. 
  • You may have entered an unsupported National Insurance letter change like changing C to J. 
  • Check that the NI table letter in the employee’s details matches the code in their Pay History, Tax and NI details section in QuickBooks. 
  • If you’re setting up a new employee in the middle of the tax year, make sure you enter 0.00 in the Pay History section. 
  • You may have an incomplete employee setup. To fix this, simply complete your employee’s setup in QuickBooks. 

See how to edit employees in QuickBooks.

Here are a few things you can try:

  • Check that the employee’s date of birth is correct (it shouldn’t make the employee less than 16 year old or older than 74). 
  • Check that the worker status is correct. (For example, are they marked as an eligible jobholder but 20 years of age where they should be an entitled worker or non eligible job holder?)
  • If the employee has been accidentally postponed from auto enrolment, try and enrol the employees when prompted and enter 0.00 in the contributions field which is found in the employee settings.
  • If the employee has been opted out, you won’t be able to opt them back in until the next re enrolment period in Standard Payroll. 

See workplace pensions

If you see this error message it means there may be a browser/network issue. See clear cache and cookies to fix issues when using QuickBooks. If this doesn’t work, please reach out to support and we'll be happy to help.

If you see the message 'Something went wrong. Please wait a moment and try again. If the problem continues, contact us.', try checking the following in your QuickBooks:

  • Make sure you’re using the correct Accounts Office (AO) reference. 
  • You are using the correct PAYE reference.
  • Your Government Gateway user ID and password is correct–make sure there is no space before or after when entering your details.

If all the details are correct and you still see the error message, try resetting your Government Gateway password (this should be at least 12 characters long). 

More help

See an error when trying to make a submission to HMRC? Here's how to fix common payroll error codes.

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