This week is National Payroll Week, so we thought we’d take the opportunity to run through a few need-to-knows if you are entering the world of payroll for the first time. If you have taken our quiz, you will find the answers below!
Before it became law for employers to provide a pension, 49% of the population in the UK admitted to having no pension at all. Thanks to auto enrolment, all employers are now required by law to offer a pension scheme to employers.
Did you know: Auto enrolment duties start from the moment you employ your first employee? If you are setting up a payroll you will also need to set up a qualifying workplace pension scheme for your employee straightaway if their salary is over £10,000 per year. The minimum auto-enrolment is currently 5% of qualifying earnings of which at least 2% must be paid by the employer. From April 2019 this will rise to 8% with 3% contributed by the employer.
Did you know: All employers must go through a cyclical re-enrolment process every three years on the anniversary of their staging date? They can “flex” the date up to three months either side of the original staging date, but will be required to auto enrol employees who have opted out of their workplace pension scheme. They are also required to complete a re-Declaration of Compliance with the Pension Regulator within 5 months.
According to research from the Chartered Institute of Payroll Professionals (CIPP), the number of employers using electronic payslips, or e-payslips, has significantly increased. In one year between 2015 and 2016 the use of e-payslips increased from 37.2% to 58.1%. As e-payslips increase in popularity, it is well worth considering the switch if you still use paper payslips – plus they are much more secure.
Did you know: Payslips can be emailed direct to employees password protected? If we do your payroll at Wilkins Kennedy, we can send the payroll to you first for approval and can later email the payslips to employees on a date agreed with you. You can also send us payroll information before your payroll is due to be run, such as new employee details, pay increases and bonuses.
Did you know: From April 2019, employees paid with reference to time worked will have to have the number of hours they are being paid for clearly displayed on their payslip. You can read more about this from our latest blog (link to blog when live).
New starter checklist
Employers must tell HMRC whenever they recruit a new employee. HMRC has issued a new starter checklist and it is important that these are filled out in order to operate Pay As You Earn (PAYE) for all new employees – even if they don’t have a recent P45 (issued at the end of every tax year).
Did you know: All new starters have to complete a New Starter checklist even if they have a P45? If they have a P45, your payroll provider will need both forms.
Finally, did you know?
All staff employed on the payroll are entitled to the National Minimum Wage or National Living Wage. From April 2018, the National Minimum Wage and Living Wage is as follows:
- 25 and over £7.83 (from £7.50)
- 21 to 24 £7.38 (from £7.05)
- 18 to 20 £5.90 (from £5.60)
- Under 18 £4.20 (from £4.05)
- Apprentice £3.70 (from £3.50)
Apprentices are entitled to the apprentice rate if they are either
- aged under 19, or
- aged 19 or over, but are in the first year of their apprenticeship.
If the apprentice is aged over 19 and has completed the first year of their apprenticeship, they are entitled to Minimum Wage.
If you would like any further information or advice relating to payroll for your business, contact Wilkins Kennedy to see how we can help.