PC Payroll has created this employment law and payroll update.
In line with the amendments and updates due to come into effect with the new tax year from April 2019, we thought it would be useful to highlight a few changes that may affect you on the legal and payroll side, in relation to being an employer.
Employment Rights (Employment Particulars and Paid Annual Leave (Amendment)) Regulations 2018
This new legislation comes into force on 6 April 2019 (and takes effect from April 2020), it implements parts of the Government’s Good Work Plan. As an employer the main implications are:
- The need to provide your new employee a written statement of their employment on day one, rather than as it currently stands within eight weeks of the start date.
- An increase in the amount of information such a written statement must contain.
- All employees are entitled to an itemised pay statement every month.
For further contractual advice, please contact Parental Choice’s solicitor.
National Minimum Wage/National Living Wage
The national minimum wage will increase from April 2019. The new rates will be as follows:
|Year||25 and over||21 to 24||18 to 20||Under 18||Apprentice|
|April 2018 (current rate)||
Should your employee be paid at the current National Minimum Wage rates and Parental Choice are aware of this, we will re-assess them and be in touch with you directly. Please note it is the employers’ responsibility to ensure they conform to this legislation. If you have any questions please do give us a call.
Employer and employee pension contributions are increasing from the beginning of the new tax year. From April 2019 the total minimum contribution will be 8%, with the employee paying a minimum of 5% and 3% covered by the employer.
AUTO-ENROLLMENT PENSION CONTRIBUTIONS will increase as follows:
|Current rate til April 2019||
|6 April 2019 onwards||
Remember, if your employee is 22 years old or over and earning £10,000 pa in your employment, they must be enrolled in a qualifying pension scheme.
For further information on pensions, please do contact the Parental Choice payroll team.
Statutory sick pay (SSP) and statutory maternity pay (SMP) are both increasing in April 2019. SSP will be increasing from £92.05 per week to £94.25 per week, where eligible.
SMP is paid at 90% of the employee’s average earnings for the first 6 weeks, then reverts to the statutory weekly amount of £146.68 or 90% of their average weekly earnings, depending which is less, for the remaining 33 weeks.
Please be aware that if you are a small business you can re-coup the costs of SMP from HMRC.
Tax and National Insurance Thresholds
The personal tax threshold for 2019/2020 will be increased to £12,500 per annum. The National Insurance threshold is also increasing, with NI being payable from £8,632 .
Parental Choice can assist you in being the best employer you can be. To help, we can:
- create a contract and provide ongoing legal advice for your new employee from just £95. Find out more.
- Set up and operate your payroll, which includes regular itemised payslips, providing all relevant updates, and liaising with HMRC on your behalf, from just £18 per month. Find out more.
- Guide, assist and administer the workplace pension for any relevant employees. Find out more.
- assist you in calculating any statutory payments due to your employees. Find out more.
Call PC Payroll on 020 8979 6453 or email firstname.lastname@example.org