25 January 2016
We thought 2013 was busy with the introduction of Real Time Information (RTI). Looking back it now seems a doddle, but ever a hope that the wrinkles will disappear along with ‘disputed charge’, ‘duplicates’, and ‘misbalance’!
2016 is proving to be one of the most substantial change years ever for payroll, software and service providers and especially payroll managers. Never before have I seen such a wide, heavy plethora of change. The majority impact from April 2016, but New Year seems a good time to start the preparations in earnest and put the brain in gear.
So in traditional terms we ‘ring out the old’ with the abolition of Contracting Out National Insurance Contributions (NICs). The ECON (Employer Contracting Out Number) and SCON(Scheme Contracting Out Number) are not more. No reduction in NICs for those who are part of a Defined Benefit pension scheme. Employees in such pension schemes now face a 13.2% rise in their NI bill along with the employer facing a 32.7% rise. Will employer and employee contributions to the scheme drop to offset those rises?
And the new tax year sees us having to ‘ring in the new’.
One of the biggest changes (or is it really the smallest) is the real use for the first time of the ‘S’ prefix tax regime indicator on tax codes for those who are considered to be a Scottish Tax Payer. The indicator is critical in relation to the finances of the Scottish Parliament.
Introduced is the new Apprentice Under 25 NI letter H (with G for mariners). Employers no longer pay secondary NIC up to a new Apprentice Upper Secondary Threshold (AUSC).
Employment allowance rises to £3,000 and at the same time is denied to single director companies.
A new higher Direct Earnings Attachment (DEA) for those who have fraudulently claimed benefits and revised tables for Scottish Earnings Arrestment.
Plan Type 2 collection of Student Loans start with further proposals for new concurrent Plan Type 3 (first deduction from April 2019 at 6% above the £21,000 threshold). The New Starter Checklist questions have been revised to enable employees (whether they present a P45 or not) to declare the plan type applicable.
The Full Payment Submission (FPS) has been revised to enable employers and pension companies to indicate and report amounts that have been paid (taxed or tax free) in relation to Flexible Drawdown or for Death Benefit payments.
The Home Office is motoring in partnership with the Department of Work and Pensions (DWP) in streamlining the process of issuing a National Insurance Number (NINO) to migrant workers (the NINOis printed on some newly issued Biometric Residents Permit – the BRP).
The Office for Tax Simplification (OTS) proposal that P11D should not be required where an employer is voluntarily payrolling benefits in kind becomes a reality for Employers who register before 6th April. The regulations are considered so wide that the majority of current methods of payrolling will comply. Excluded are accommodation, loans and credit vouchers. April 2017 will see the introduction of a new method of reporting car benefits where they are also payrolled!
We also see the 50p premium above the standard National Minimum Wage (NMW) with the launch of the ‘Living Wage’. So following the uplift in NMW last October, employees of relevant age will see a further uplift. Future rises are expecting to align with the start of the new tax year. Recent rulings on uniform purchase have also hit some retailers policies of requiring employees to buy their own employer range clothes for wearing on the shop floor.
And into the future we see the proposed introduction of the Apprentice levy of 1/2% for employers with a ‘Pay Bill’ over £3 million. There is much to be considered and worked through on how the policy will work, especially for multi payroll employers across multi pay frequencies and also the impact on seasonal working such as agriculture and leisure. ‘Pay Bill’ Is not yet defined but is indicated potentially as being the same earnings National Insurance (so excluding anyone not subject to Class 1 NICs).
And then there are the ever changing requirements on the calculation of holiday pay…
If you want to learn best practice in handling data in light of the General Data Protection Regulations (GDPR), you can do no better than to look at DuPont. Now part of science giant DowDuPont following a merger last year, data is part of the DNA of the organisation and it has a long history of embedding data protection into its culture.8 March 2018
Here are the top five lessons on implementing GDPR from the session with Gert Beeckmans, Chief Risk and Security Officer at SD Worx, and Frank Rudolf, Director of Payroll at PAREXEL from the SD Worx European Conference 2018, held in London on 6th February.2 March 2018
With just three months to go until the General Data Protection Regulation (GDPR) comes into force, the clock is ticking for HR and payroll managers to get the systems and processes in place to ensure compliance. The regulation, coming into effect on 25 May 2018, updates data rights for today’s networked world, and organisations ignore it at their peril.1 March 2018
Clark Hoy, Business Development Manager at SD Worx UK & Ireland shares his top tips for all the new dads and dads to be (D2B) regarding all things paternity!26 February 2018
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GDPR is set to see the biggest shake-up in the way we handle data since the Data Protection Act of 1998. Over the last few years, the processing and control of data has seen many systematic changes. Updated legal obligations set out in the Regulation such as the ‘lawful basis’ of the processing of data is sure to see more changes to data handling.27 November 2017
Read Simon Parson's latest blog where he answers the frequently asked question: 'Do you know if HMRC are likely to want us to include more options for employees that may be transitioning or don’t identify themselves with either gender?'23 November 2017
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The EU’s General Data Protection Regulation (GDPR) comes into effect on 25 May 2018. It applies to any organisation that processes the personal data of
EU citizens regardless of where they are situated. Brexit won’t let UK companies off the hook as the government has announced that the legislation
will be brought into UK law.
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In order to get to understand Alabaster, we recommend that you know a little about the case precedent behind it.2 October 2017
Our Head of Legal, Leon Daniel, has written some useful information on GDPR and what it might mean for your organisation. This is the second of a series of articles on the steps we are taking at SD Worx to ensure GDPR compliance.14 August 2017
Our Head of Legal, Leon Daniel, has written some useful information on General Data Protection Regulation (GDPR) and what it might mean for your organisation. This is the first of a series of articles on the new Regulation and will cover the steps we are taking at SD Worx to ensure GDPR compliance.7 August 2017
Part two of our blog, our Commercial Director John Cusack and Business Development Manager Steve Knapman, built upon the information outlined by Mercer in part 1 – and discuss how SD Worx’s analysis tools can provide you with in-depth statistics on the gender pay gap. Read more on some of the useful points that we took away from the webinar...10 July 2017
Minimum pay is governed by employment law, and breach is criminal; HM Revenue & Customs are charged with policing its application based on a number of significant factors and structures. In this blog, our Director of Payment, Benefits & Compliance Strategies, Simon Parsons, discusses critical touch points for compliance and recent payroll error examples regarding this legal requirment.3 July 2017
The gender pay gap has been a hot topic for years, dominating discussion in the media and in boardrooms. Seemingly refusing to close, the gap stood at 9.4% in 2016, down from 17.4% in 1997. While the UK is getting nearer and nearer to gender parity in pay, figures suggest it still has a long way to go...19 June 2017
2017 is going to be both interesting & challenging. With Brexit and changing government leadership much is to be done and quickly. Now is the time for the business to come together and plan for change...2 March 2017
In August 2016, HMRC launched a ‘Consultation on salary sacrifice for the provision of benefits in kind’. The indication is to bring in law changes from April 2017.11 October 2016
Often once the deal is done you can’t see the lawyers for dust, so if you receive notice from a supplier or customer that they have been acquired, or if you have been acquired yourself, what do you need to do to keep your current contracts in order?3 October 2016
The way the government funds apprenticeships in England is changing. The 6th April 2017 sees the introduction of a new employment tax on United Kingdom employers. Scotland Wales and Northern Ireland, each having their share of the levy, will have to decide how apprenticeship spending will take place. In this blog I cover some key points that employers should be considering in order to prepare for the upcoming changes...5 September 2016
As a union, the UK has voted to leave the European Union with some Scottish politicians hinting of a further independence referendum, and some in Northern Ireland wanting a joint Irish nation! At the same time, Job Centre Plus has run out of National Insurance numbers and in June 2016, decided in to start issuing NINOs with prefix ‘KC’ - but there is an issue with this...15 August 2016
With the result of the UK referendum to leave the European Union and indication by Scotland's first minister to run a further Devolution referendum, Simon Parsons considers the potential implications for the next few years for Scotland and Payroll services...8 August 2016
So the nation has chosen to progress leaving the EU with a popular vote of 52%. So what's changed, apart from volatility in currency and stock markets? And what major action do we see impacting payroll?26 July 2016
The National Living Wage (NLW) became compulsory for employees aged 25 and above, at a new minimum rate... Have you considered the implications and reviewed your maternity leave payments and made top-ups of SMP?27 June 2016
April 2016 saw some of the most significant legal changes to impact payroll operations and software. I would venture that this year’s new changes have been some of the most impactful yet, more so than the introduction of Real Time Information (RTI). New requirements for Scotland including the Scottish Rate of Income Tax and changes to Earnings and Maintenance Arrestments. A revolution in national insurance with the removal of Contracting out and Under 25 Apprentice NICs being introduced. The list can go on.13 June 2016
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