What is the purpose of an Employer Payment Summary (EPS)?

The Employer Payment Summary (EPS) is a crucial component of the payroll submission process in the UK, primarily used to report specific payment details to HMRC. Its primary function is to reconcile the information provided in the Full Payment Submission (FPS) with the actual cash amounts paid to employees and the tax liabilities owed to HMRC.

When businesses make adjustments regarding their payroll, such as reporting statutory payments that might reduce their National Insurance contributions or correcting previous submissions, the EPS serves as a tool to communicate this information. It ensures that all payments, deductions, and contributions are accurately reflected, thereby helping to maintain compliance with HMRC regulations.

In contrast, the other options do not align with the functional purpose of the EPS. Reporting employee grievances pertains to workplace issues and does not involve payroll reporting. Summarizing company profits relates to financial performance, which is covered in annual financial statements rather than payroll summaries. Reporting on employee training programs is related to human resource management and does not fit within the payroll reporting framework the EPS establishes.