Businesses braced for payrolling changes

With Christmas and New Year celebrations now becoming a distant memory, businesses are settling back into work for 2019.

Without doubt, the main focus for businesses this year is Brexit, but the uncertainty around the deal is making companies feel unprepared for change.

However, there are some payrolling changes that will be introduced from April 6 which businesses can plan for now.

Changes from the new financial year include:

  • Changes to hours on payslips – employers will be required to provide the number of hours being paid on the payslips of employees who are paid according to ‘time worked’.
  • Payslips for all workers – currently all people in full-time employment receive a payslip, but from April it will also become compulsory for non-employees such as freelancers and contractors to receive a payslip.
  • Welsh tax rates – for the first time, a proportion of the income tax paid by 1.34 million taxpayers living in Wales will directly fund Welsh public services.
  • Pension auto-enrolment – presently under auto-enrolment, 5% of qualifying earnings are set aside for the employee’s retirement, of which at least 2% must be paid by the employer. In April, this will increase to 8% of qualifying earnings of which at least 3% must be paid by the employer.

 

  • National Minimum Wage and National Living Wage – the hourly rates will also increase:
  • For 25 year olds and over – an increase from £7.83 to £8.21
  • 21 to 24-year olds – an increase from £7.38 to £7.70
  • 18 to 20-year olds – an increase from £5.90 to £6.15
  • Under 18s – an increase from £4.20 to £4.35
  • Apprentices – an increase from £3.70 to £3.90
  • Termination payments – payments over £30,000 are currently subject to income tax and will also be subject to Employer National Insurance Contributions from April 2019.
  • Student loans – the Department for Education is introducing a new loan type, the Postgraduate Loan (PGL).  The threshold for paying back the loan in 2019/20 is £21,000, earnings above this will be calculated at 6%.

For more information on the changes to payrolling, email l.kennery@pierce.co.uk

Your Holiday Entitlement and Minimum Wage

by:  Lisa Kennery

Your Holiday Entitlement and Minimum Wage

The current Holiday entitlement is 28 days inclusive of bank holidays. For full timers 5days * 5.6 weeks.

20130924 holiday-destinations-india

Working part-time

Part-time workers are also entitled to a minimum of 5.6 weeks of paid holiday each year, although this may amount to fewer actual days of paid holiday than a full-time worker would get.

Example
A worker works 3 days a week, their leave is calculated by multiplying 3 by 5.6 which comes to 16.8 days of annual paid leave.

20130924 singles-holidays

For irregular hours worked or a complex situation you may want to look at the following website:

https://www.gov.uk/calculate-your-holiday-entitlement

Please note any holiday entitlements calculated should be rounded up to the nearest half or complete day.

Your Minimum Wage Entitlement

Please be aware that the National Minimum Wage will be changing with effect from 1st October 2013.

 20130801 National Minimum Wage

The statutory rates will be as follows:

Aged 21 and over                                        £6.31

Aged 18-20 inclusive                                  £5.03

Aged 16-17 inclusive                                  £3.72

Apprentices under 19 or in 1st Year of apprenticeship                      £2.68

If we look after your payroll and the above new rates affect any of your employees and are to be amended accordingly please contact us with instructions via email or facsimile. Please also confirm the date when the amendments should be implemented.