As we approach the end of the tax year, there are a number of issues that might require payroll administrators to take action:
Auto enrolment Contributions
From 6 April 2018, the minimum contributions increase to 2% for employers and 3% for employees.
Payrolling of Benefits
Employers who want to payroll certain benefits in 2018/19 need to register with HMRC by 5 April 2018.
All benefits apart from living accommodation and beneficial loans can be payrolled. Employers add the cash equivalent of the employees’ benefits to their pay, and then tax them through the payroll. It is then not necessary to use form P11D or P46 (Car) to report these benefits, but employers do still need to work out the Class 1A National Insurance contributions on benefits and complete form P11D(b).
HMRC will make sure that these benefit are removed from employees’ tax codes so they won’t be taxed twice on them!
It is possible to start payrolling benefits part of the way through a tax year but if you do then you still need to submit forms P11D, so it makes sense to register in advance.
Note that if you are registered for payrolling of benefits for 2018/19 then from 6 April 2018 you must include car and car fuel in the Full Payment Submission (FPS).
The apprenticeship Levy applies to employers who have a pay bill of more than £3m. Those with payrolls around this level need to monitor this on a monthly basis. The calculation works by giving an annual ‘allowance’ of £15,000. Each month you need to take 0.5% of your year to date payroll cost and compare this with the proportion of the £15,000 annual allowance due for the year to date, and the payments made so far in the year.
Employers should also consider if they can benefit from the apprenticeship scheme.
The National Minimum and National Living Wage rates increase on 1 April 2018.
The increases for the rates that apply to 18-24 year olds are the largest for a decade and will mean that far more employers and employees will be affected.
General Data Protection Regulation (GDPR)
Whilst the GDPR is about far more than payroll records, the sensitive personal data they include is affected by it and employers will need to make sure they are compliant by 25 May 2018.
For example, payroll administrators need to make sure they hold only data absolutely necessary for the payroll and auto enrolment. Other information, which might be relevant for an employer such as next of kin emergency contact details might form part of an HR file but should be excluded from payroll records.
Payroll data must be kept securely and in compliance with the regulation.
Shipleys payroll service. Taking the pain away
Payroll rules have become increasingly complicated over the last few years. So we know that keeping on top of all the current rules can be time-consuming. And that investing in the right systems can be expensive.
That’s why we offer flexible, scalable payroll services for our clients. Whatever you need. From making the calculations to running your entire payroll process. We help take your payroll headache away.
If you’d like to have a no obligation chat about how we could help you contact our payroll expert Jackie Boyton
Specific advice should be obtained before taking action, or refraining from taking action, on any of the subjects covered above. If you would like advice or further information, please speak to your usual Shipleys contact.