Category Archives: Payroll

Changes to payslips from 6 April ’19

From the start of the new tax year, payslips must show the total number of variable hours a worker has worked, meaning that it will no longer be acceptable to just show a total £ pay figure in some circumstances.

The guidance from ACAS is as follows:

‘From April 2019, a payslip must show the total number of variable hours a worker has worked. This is only required when workers get a different wage depending on the hours they have worked. This might be because they have worked overtime, the number of hours they work changes in each pay period, or the rate they get for working certain hours is different.

The payslip only needs to show the hours that actually vary. For example, if a worker is salaried to work for 20 hours in a pay period but also works 4 hours of overtime, only the additional 4 hours must be recorded.

These hours can be shown as a single total or they can be broken down.’

We suggest employers look at how their current payslip format can be amended to incorporate the extra data and stay within the new legal requirements.

If we can be of assistance with this, or any other aspect of payroll, please do get in touch.  We offer a cloud based payroll solution which incorporates a secure, self-service employee portal, ensuring GDPR compliance.

 

 

 

 

 

 

 

April ’19 increase in automatic enrolment pension contribution rates

Minimum workplace pension contribution rates are set to increase from April. 

Current contribution rates:

2% employer

3% employee

Contributions rates from 6 April 2019:

3% employer

5% employee

Employers will need to inform their workers of the increase and ensure that they collect and pay across the new pension contribution amounts.

This is the last of the planned phased increases announced when auto enrolment was introduced.  There has been some chatter about possible future changes to the auto enrolment system.  This includes the possible removal of the lower earnings limit in the calculation of ‘qualifying earnings’ on which pension contributions are based and the reduction of the age trigger for auto enrolment which is currently 22.  We’ll keep you posted!

Contact us today if we can be of assistance with any aspect of auto enrolment.  We offer affordable and bespoke payroll solutions for any size of business.

 

 

 

Employee contracts & staff handbooks

Do you have employment contracts in place for your employees?  Do you have a staff handbook outlining your company’s policies and procedures?

If the answer is no, or if your contracts aren’t up to date, then we are pleased to be able to offer a new service to help you meet your legal obligations in this area.

Employee contracts 

Most employees are legally entitled to a written statement of the main terms and conditions of their employment, such as pay, working hours and holiday entitlement, within two calendar months of starting work.  https://www.gov.uk/employment-contracts-and-conditions/written-statement-of-employment-particulars

Staff handbook

Additional information regarding general conditions of employment, such as sick leave, pensions, grievance procedures, etc. can be provided in a staff handbook.  The handbook allows you to outline your policies and procedures in more detail and provides all parties with clear guidelines should any issues arise.

Not having these documents in place can leave employers exposed to disputes over pay and conditions resulting in disgruntled employees, difficulties in recruiting and potentially expensive employment tribunal claims.

How we can help 

We can now provide you with up-to-date, legally compliant employment contracts and staff handbooks at an affordable price.

The cost

Our fee structure for this new service is as follows:

12 months subscription, to include 4 employee contracts plus staff handbook with unlimited updates to cover any changes in employment law – £160

Additional contracts – £40 each

For more information please contact us.

Payroll changes for the 2018 / 2019 tax year

With a new tax year fast approaching there are some key changes to be aware of:

  • the tax free personal allowance will increase to £11,850 and the new emergency tax code will be 1185L.
  • the National Living Wage NLW (for those aged 25 & over) will increase from £7.50 to £7.83.
  • the National Minimum Wage NMW will increase as follows:
Employees aged 21-24 – from £7.05 to £7.38
Employees aged 18-20- from £5.60 to £5.90
Employees aged under 18- from £4.05 to £4.20
Apprentices aged under 19, or aged over 19 in the first year of their apprenticeship – from £3.50 to £3.70 
  • the minimum contribution rates for workplace pension schemes will increase to 5%, with a minimum of 2% employer contribution.  (eg. employer 2%, employee 3% contribution)
  • Statutory Sick Pay will increase from £89.35 per week to £92.05 per week.
  • Statutory Maternity, Paternity, Adoption and Shared Parental Pay will increase from £140.98 per week to £145.18 per week.
  • the repayment threshold for student loans will increase as follows:
    Plan type 1 loans from £17,775 to £18,330
    Plan type 2 loans from £21,000 to £25,000

Please do not hesitate to contact us if we can help you meet your payroll and workplace pension duties.

Do you understand how new pension laws affect your business?

In a recent press release The Pensions Regulator urged small and micro employers to check how auto enrolment affects them. It comes at a time when quarterly figures show a rise in the number of non compliance penalties being issued.

The penalties for non compliance are sizeable and can include a fixed £400 penalty and an escalating penalty of £50 to £10,000 per day depending on number of staff.

The Pensions Regulator detailed two employers who were fined £400 when they did not comply with their duties after failing to understand how the law affected them:

  • A garage owner failed to complete a declaration of compliance as they thought a staff member had done it.
  • A travel agent with no staff eligible for automatic enrolment failed to complete other duties such as completing their declaration of compliance after wrongly assuming the law did not apply to them.

The good news is that Grant & Co can help. Whether you need just a little assistance to meet your new duties, or a fully comprehensive service, our value for money solution can be tailored to meet your exact needs. We can:

  • Introduce you to our experienced payroll team who will ensure the smooth transfer of your payroll scheme to our systems
  • Assist with choice & set up of a compliant pension scheme
  • Assess your workforce
  • Calculate your costs
  • Handle statutory staff communications
  • Enrol your staff into your chosen pension scheme
  • Calculate & report pensions contributions
  • Complete The Pensions Regulator declaration of compliance
  • Manage your ongoing employer duties

Call us today for a free, initial consultation.

Voluntary payrolling of benefits in kind

As the 6 July deadline for filing forms P11D, P9D and P11D(b) passes for this year, HMRC is consulting on the introduction of a voluntary system of payrolling benefits in kind.

The government believes that payrolling benefits in kind instead of submitting forms P11D can offer substantial administrative savings for some employers and wishes to create a system that will enable employers to do so if they wish.  In particular three priority areas for consultation are:

  • private use contributions for company cars and fuel,
  • private medical and gym membership fees, and
  • one-off large benefits through transfers of assets.

The consultation document can be found here and the consultation closes on 9 September 2014.  HMRC are particularly keen to hear from employers who already have payrolling in place.

After the introduction of RTI and the additional burden of Workplace Pensions and Auto-enrolment we wonder if this move will be welcomed or just add further strain to increasingly stretched payroll departments.

If you would like further information on how to handle expenses and benefits, or would like to know how we can help you with our Payroll and Auto-enrolment service, please do get in touch.