Employer Payroll Tips 2019

Are you an employer wondering how you can better manage your payroll? Read our top tips below to ensure you’re compliant and up to date with recent changes.

1. Auto enrolment contributions increase

As an employer, you will now be required to contribute a minimum of 3% towards your employees’ pension plan. Employees will be required to contribute a minimum of 5%, making a total minimum contribution of 8%.

2. Auto enrolment communications

When an employee is first automatically enrolled, the letter they receive from you will note that contribution levels will increase over time. You may wish to advise employees about the minimum increases to reduce queries and workers leaving to schemes.

3. New rules to payslip layout

A payslip must now show the total number of variable hours an employee has worked. If they have worked overtime, the number of hours they work changes each pay period, or the rate they get for working certain hours differs, the variable hours and rates must be detailed on their payslip.

4. Declaration of compliance

This needs to be completed no later than 5 months after your staging date, duties start date or re-enrolment date. You will be fined if you fail to complete this accurately and on time.

5. Childcare Vouchers and Tax-Free Childcare

From 4 October 2018, the employer supported childcare voucher arrangement closed to new applicants.
In its place, the government introduced the Tax-Free Childcare scheme. This is a direct arrangement between the employee and the Government to help provide income tax relief on qualifying childcare support.

6. Personal Tax Account

Employees can view their personal tax information online through a Personal Tax Account. This account is useful for all employees and allows them to update HMRC on changes that may affect the tax they pay.

7. Company Car Tax Diesel Supplement

If you’re an employer providing diesel company cars that are available for private use, there is now a requirement to check whether the car meets the Euro Standard 6d. This is important as it will determine if the additional 4% diesel supplement is applicable.

8. The Apprenticeship Levy Allowance

An Apprenticeship Levy Allowance of up to £15,000 is available to every qualifying employer. This means you only pay the Apprenticeship Levy charge of 0.5% on a pay bill that is more than £3m (i.e. £3m x 0.5% – £15,000).

It is important to be aware that if you are part of a group of connected companies or charities that each have payroll costs, only one Apprenticeship Levy Allowance will be available across the whole group.

If you have any questions on the above, or have any other payroll queries, please get in touch today.

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