Legislation does change and your own circumstances may differ from the situation highlighted in this blog. Please note: This blog/news post provides an overview or insight only and therefore, should be viewed as being for guidance only purposes. For more details about our payroll services click here. Please get back to us if you wish to discuss the implications of the above or require any assistance with either budgeting/costing or payroll processing. To the cynics amongst us, that comes as no surprise.įor labour intensive businesses this will be a real cost that has somehow to be absorbed or passed on to customers. Therefore, given the above NLW increases, the employer is effectively funding the employees’ extra pension contributions. Thus, on this day the employee worked 9 hours, even though the schedule only reflected 8 hours.
all of the clocks are turned back one hour to 1a.m. 3, 2013) at 2 a.m., the employee works the hour from 1-2 a.m. This is coupled with further increases to pension contributions from 6 April 2019 to 3% (employer) and 5% (employee). On the Sunday that daylight-saving time ends (Nov. To make matters even more challenging, the Low Pay Commission has indicated that the NLW is likely to rise to “ around £8.20 per hour (ph) “ in 2019/20 and “ around £8.60 ph” in 2020/21. From 6 April 2018 those percentages increase to 2% (employer) and 3% (employee). Under pensions auto-enrolment you, as an employer, are required to contribute 1% of gross pay all the while that the employee also pays 1%.
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From 1 April 2018 the following increases apply:Įmployees over 25 (NLW) From £7.50 per hour to £7.83 (that’s 4.4%!)Įmployees aged 21-24 (NMW) From £7.05 per hour to £7.38Įmployees aged 18-20 (NMW) From £5.60 per hour to £5.90Įmployees aged 16 and 17 (NMW) From £4.05 per hour to £4.20Īpprentice NMW From £3.50 per hour to £3.70Īs you can see, the increase is quite a bit above the rate of inflation. Step 4 Paydata Examples Paydata Entry Third Party Sick Pay Time/Time Off Manual Checks & QuickCalc Imported Paydata Gross Receipts Creating Paydata Automatic Pay calculates standard pay for salaried employees or hourly employees with standard hours. In this regard you need to be aware of two changes, being an increase in the National Living Wage (NLW) and National Minimum Wage (NMW), and an increase in pension contributions.
This might be the time of year when you are thinking about pay rises for your staff and/or budgeting for the coming year. What Is National Insurance? Who Must Pay It? Our Tax Guide.
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