Managing Tax Code and Tax Calculation Sync for UK Hibob-Employment Hero Integration Customers

Managing Tax Code and Tax Calculation Sync for UK Hibob-Employment Hero Integration Customers

Overview                    

This article delivers an in-depth explanation of the functionality and highlights a new feature specifically designed to tackle tax-related challenges encountered by users.

Issue with Tax Code and Calculation Updates

In the UK, HMRC (HM Revenue & Customs) periodically updates an employee's tax code and tax calculation method (Week 1/Month 1 basis) directly within Employment Hero. However, when these updates occur, they can be overridden by the integration with Hibob. This happens because Hibob retains the older tax code information, which is then pushed back to Employment Hero during synchronization. As a result, the tax code and tax calculation method updated by HMRC are inadvertently replaced, potentially causing discrepancies in payroll processing.

New Toggle Feature for UK Customers

To address this issue, we have implemented a toggle feature for our UK customers using the Hibob-Employment Hero integration. This toggle allows greater control over how tax codes and tax calculation methods are synchronized between the two systems. Here’s how it works:

Initial Sync Behavior

  • When the toggle is enabled, the integration will sync the employee data from Hibob to Employment Hero, including the tax code and tax calculation method, only during the initial synchronization. This ensures that the initial setup aligns with the data stored in Hibob.

Post-Sync Behavior

  • After the initial synchronization, the integration will stop sending updates to the tax code and tax calculation method fields. This means:

    • If HMRC updates the tax code or tax calculation method directly in Employment Hero, those changes will remain intact.

    • The integration will no longer override these fields with values from Hibob.

Benefits of the Toggle Feature

  • Accurate Payroll Processing: Ensures that payroll calculations reflect the correct tax code and method as updated by HMRC.

  • Reduced Manual Interventions: Minimizes the need for manual adjustments in Employment Hero caused by unintended overrides.

  • Improved Data Integrity: Maintains consistency and accuracy between the two systems.

Enabling the Toggle

For customers wishing to utilize this feature, the toggle can be enabled in the integration settings. Once activated, the behavior described above will take effect immediately. It is recommended that users review their synchronization settings and ensure the toggle is configured according to their operational needs.