Payroll Legislation update
Here is a round-up of some of the UK’s payroll legislation developments for 2019.
Itemised Pay Statements
From April 6th 2019, new legislation will change how employers in the UK provide payslips to their workforce. UK employers will be required to submit an itemised payslip for all workers on their payroll. In situations where an employee’s pay fluctuates by reference of time worked, employers must ensure that all employee payslips include the total number of hours they are being paid for. This can be displayed as a single combined amount or as an itemised list illustrating different rates of pay for different hours worked. All payslips must be delivered either on or before the employees pay date.
Find out more here.
Auto-Enrolment Contributions
From April 6th 2019, the minimum contribution for both employers and employees for auto-enrolment will increase. This will see minimum contributions increasing from 5% to 8%. The employer will be required to make a minimum contribution of 3% with the remainder of the balance being made by the employee
Find out more here.
Income Tax Threshold
The income tax threshold will change. The tax-free personal allowance will increase from £11,850 to £12,500.
The threshold for the higher rate of income tax will also increase to £50,000.
Gender Pay Gap Report
All private organisations with 250 or more employees will be required to publish and report on their specific gender gap pay figures.
Reports for public sector organisations must be published by March 31st 2019
Reports for businesses and charities must be published by April 4th 2019
Failure to provide these reports on time and supply accurate data will put employers at risk of facing legal action, leading to court orders and fines.
Find out more here.
Increase In National Minimum Wage
From April 2019 the UK will see an increase in both the National Living Wage and National Minimum Wage.
Increases to national minimum wage for workers will be as follows:
- Workers aged 25yrs and over will see a rise form £7.83 per hour to £8.21 per hour
- Workers aged 21 to 24yrs will see a rise from £7.38 to £7.70 per hour
- Workers aged 18 – 20yrs will see a rise form £5.90 to £6.15 per hour
- Workers under the age of 18yrs will see a rise from £4.20 to £4.35 per hour.
Apprentices that are under 19 will also see an increase in their hourly rate which will rise from £3.70 to £3.90. This will also apply to apprentices 19 and over, where they are still in the first year of their current apprenticeship.
Find out more here.
Student Loan Recovery
From April 2019 there will be changes to student loan repayments. Currently, the repayment threshold for Plan Type 1 sits at £18,330. This will increase to £18,935. Pan Type 2 will see an increase from £25,000 to £27,725. The percentage of earnings contributions will remain the same at 9%.
Find out more here.
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