11 April 2016
In the 2015 Queens speech, the Government set out to create 3 million new apprenticeships by 2020. As part of the Enterprise Bill, apprenticeships would gain the same legal treatment of degrees. ‘The Richard Review’ brings new standards being developed by ‘trailblazers’ and new funding trialled giving employers greater control over spend on training delivery.
An apprentice is a full-time paid job which incorporates on and off the job training, receiving a nationally recognised qualification. There are over 200 different types with study at Intermediate, Advanced, Higher and Degree levels. Additionally, Traineeships are also available for people who are unemployed or have little work experience so they can be prepared for an apprenticeship. Minimum standards apply such as: minimum length of 12 months; 270 houses of guided learning; 30 hours of work each week; training in English and Maths. Apprentices are employees and entitled to the same employment rights as other employees including holiday and maternity leave.
So what impacts does this have on payroll and the operation of PAYE – I will cover three: National Minimum Wage; National Insurance Exemption for Apprentices Under 25 and hints at the new Apprenticeship levy being introduced from April 2017.
National Minimum Wage – Apprentices aged 16-18 are entitled to £3.30 per hour for both work and time training. Those aged 19 and over are also entitled to £3.30 for the first 12 months and then the standard national minimum wage rates apply. So 18-20 years £5.80, 21-24 years £6.70 and with the introduction of the new Living wage, those 25 years and over, a new rate of £7.20 minimum.
As well as other funding grants employers see a new incentive introduced from 6th April 2016 in the form of the ‘Abolition of employer National Insurance (NI) contributions for apprentices under 25’. Where there is an apprenticeship in place, the employer will no longer pay the 13.8% secondary contribution up to the new Apprentice Upper Secondary Threshold (AUST). The reduction in NI is undertaken through the operation of new NI categories H (standard) and G (for mariner apprentices). When the apprenticeship ends then the employee will revert to the standard NI category letters, or if still aged under 21, then the equivalent appropriate under 21 NI category.
To qualify the employee must be under 25 years old and following an ‘approved UK government statutory apprenticeship framework). The employer needs to have evidence to be able to apply the relief. This can be: a written agreement between the employer, the apprentice and the training provider; evidence that the apprenticeship receives government funding. The written agreement would show: the government apprentice framework or standard; a start and the expected end date for the individual’s apprenticeship scheme.
Please note that with usual NIC practice, the judgement point of the age and status of whether an apprenticeship is in place is the point of the payment and applied to the full payment period with no pro-ration. The date of birth is critical payroll data along with a recording of the Apprenticeship start and stop date needed for validating the entitlement to both Under 25 Apprentices versus standard and Under 21 NI.
April 2017 sees the Apprenticeship levy which affects all employers that have a joint ‘annual paybills’ in excess of £3 million. On that basis less than 2% of employers will pay anything! The aim of the levy is to help deliver new apprenticeships, ‘Employer who are committed to training will be able to have back more than they put in’.
Announced in the Summer Budget 2015 and Autumn Statement, a levy will be charged at a rate of 0.5% payable alongside tax and National Insurance. ‘Paybill’ is to be based on the total employee earnings subject to Class 1 secondary NICs.
In potentially a similar way to the Employment Allowance (including the connected persons rule), each employer will receive one annual allowance of £15,000 to offset against the levy. Where there are multiple payroll and PAYEschemes, only one allowance may be claimed. The detail on how has yet to be decided. Is this a once off similar to the Employment Allowance or pro-rata cumulative across the tax year? How will employers and payroll combine multiple payrolls and PAYE scheme amounts together? Under which PAYE scheme is the levy applied? Watch this space…
There have been many publications about the Good Work Plan over the past 18 months and it can be confusing to work through complex, legislative documentation to understand how you stay compliant. While the good work plan covers many topics, this blog aims to take you through one aspect of this, Holiday Pay, and asks the simple question – are you ready for the changes?29 October 2019
With summer just around the corner, businesses face the inevitable yearly challenge of balancing an influx of annual leave requests with keeping the company running at full capacity. Absence management is a vital, yet often overlooked part of running a business – get it wrong and the impact of summer holidays can last all year round.19 June 2019
I just don’t understand why organisations do not see the Living Wage, and I mean the Living Wage, NOT the government’s rebranded minimum wage (National Living Wage), as an *opportunity*. This is an opportunity to increase “engagement”, “efficiency” and to “empower” employees. Yet far too many organisations just see it as yet another cost they have to accommodate.1 February 2019
More than anything, this year’s data highlights the need for a new and more agile approach to HR. Conservative strategies simply aren’t going to cut it going forwards, because by the time the ink is dry, things will have moved on. Increasing business agility is now the #2 business driver for 86% of HR professionals, second only to increasing performance and profitability.28 November 2018
How do UK businesses tend to approach reward currently? Is there a shift in approach and if so, what is causing this?16 August 2018
How do UK businesses tend to approach reward currently? Is there a shift in approach and if so, what is causing this?14 August 2018
Autonomous Vehicles And Smart Warehouses Are So Last Year – 2018 Is All About Digitising Your HR Function.
Hear from our CEO Steven Van Hoorebeke during an interview with The Business Debate.18 April 2018
On 6th February at Hilton Park Lane in London, we joined HR and payroll professionals from across the globe for the SD Worx European Conference 2018. With the "Future of Collaboration: HR leading the way" theme, this one-of-a-kind event played host to industry-leading experts, practitioners and organisations.16 March 2018
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
Millennials: entitled, lazy job hoppers. Gen X: cynical and poor team players. Baby Boomers: out of touch, independent, money-driven workaholics. And what about the iGen: those house-bound, tech-obsessed kids who were born with a smartphone in their hand? These stereotypes are bandied around regularly, but is there really any truth in them? And do different generations expect to be treated differently by their employers?5 March 2018
On Tuesday 6th February, at Hilton Park Lane in London, we were delighted to join our partner SD Worx at its European Conference 2018.The theme for the day was close to our heart: ‘The Future of Collaboration’. This unique event played host to the industry's most influential experts, practitioners and businesses, attracting leading HR and payroll professionals from all over the world.5 March 2018
Adam Burgess, Business Development Manager at SD Worx UK & Ireland reflects on his first experience of an SD Worx conference. SD Worx hosted its 22nd Annual European Conference at the Park Lane Hilton in London in February 2018, with "The Future of Collaboration" as its 2018 theme.2 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
At the SD Worx European Conference, held at the Park Lane Hilton on Tuesday 6 February, a panel of six individuals from different generations gave their thoughts on age-based stereotypes, their personal values, career aspirations, the challenges they’ve encountered and what, if anything, can be done to address the differences between the age brackets within the workplace.20 February 2018
As a Business Development Manager, I am often invited to most company events. Certainly anything client or prospect facing, and usually internal gatherings too. The SD Worx Business Kick Off 2018 was no different. Hosted in Manchester over the course of 2 days, we had a packed agenda and over a hundred colleagues in attendance, all ready to be WOW’ed.24 January 2018
With the aim to build a model employee experience, HR departments are compelled to rewrite the rules by revolutionising talent practices. Human resource management is designed to maximise staff performance, and the HR department should be a key component in an organisation’s digital transformation.10 January 2018
Technology is the wheel that never stops turning. If Moore’s Law is to be believed, the sheer power of processing units will have doubled within two years – and that means plenty of new pieces of tech that could shake up HR and payroll processes. With that in mind, here are three technological trends that could significantly alter your industry.10 January 2018
As an employee who has the privilege of representing SD Worx to an awful lot of prospective clients, I get to hear what’s important to the market straight from key decision makers. ISO 27001, and data security in general, is one of the hottest topics in our market space.5 January 2018
With the ever-increasing benefit costs for company cars for both the employee and the employer, and the new rules for Optional Remuneration Arrangements (OpRA), is a company car as cost-effective as it once was?20 December 2017
During Christmas and the associated holiday season, payroll managers experience some annual adjustments and events. Simon Parsons takes us through some of the festive benefits – and the associated tax implications.18 December 2017
UK payroll managers have a new year window of 3 months to prepare for the much older UK (and Isle of Man) new tax year start. With the setting of new year resolutions, it is a good time for payroll professionals in the UK to review their preparations on items which are not purely system change, but challenge process and rules within employment.11 December 2017
Retention of the personal data is ‘lawful basis’ where it is necessary, for compliance with a legal obligation, for the exercise or defence of legal claims. For Payroll and HR reasons, employers must hold and retain personal information about their employees and former employees to meet these legal requirements.4 December 2017
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
The terms artificial intelligence and robotics are often used synonymously but are quite different, albeit complementary, in their application. Robotics, in simple terms, means process automation - using technology to remove human intervention in some of the lower value add activities such as information keying, data analysis and performing complex calculations. Artificial intelligence is a somewhat different concept13 November 2017
Increasingly within global organisations we see that individuals have increasing international activity throughout a business’ empire with differing national fiscal obligations. Impact on employees and compliance with a variety of national fiscal government obligations brings into play significant complexities. Some will be available within Payroll Software or service, whereas others, a little more obscure, may require special handling. For UK Payroll, there are a variety of variants (to the normal) Pay As You Earn (PAYE) obligations.6 November 2017
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.
9 October 2017
In order to get to understand Alabaster, we recommend that you know a little about the case precedent behind it.2 October 2017
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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
Nobody is safe, according to many scientists and technology gurus. Artificial Intelligence (AI) and robots will soon to be able to do almost everything better than humans and will take over most jobs, including that of a doctor, lawyer and other professionals. Our Managing Director, Doug Sawers, shares his thoughts...3 April 2017
HR Tech World Congress, the UK’s biggest annual HR technology show, took place at the ExCel in London last week with the theme of "The Future of Work". It was a fantastic two-day event attended by more than 3,500 exhibitors and delegates, with plenty of interesting speakers! Read our highlights from the event...30 March 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
Technology in the workplace is not a new phenomenon but a continuous drive towards automation which has been taking place to varying degrees since the rise of Manchester Capitalism and the Industrial Revolution. As such, there is much we can learn from history regarding the nature of work...16 February 2017
We were delighted to exhibit at HR Tech World 2016 in Paris. Check out our short video here to get a flavour of this successful event.1 December 2016
Never before has it been more vital for businesses to optimise the ideas, strengths and skills of their entire workforce – and of others within their industry and beyond. Is it time for HR to become more proactive? Hear Doug's thoughts, MD of SD Wrox UK & Ireland, on HR and its role in the future of work.21 November 2016
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
In the UK alone, there are 11 million households with pets, equating to 57 million animals and a subsequent market where £4.6b is spent annually on pampering these additions to our family units. Despite this; pet owners do not feel confident to use their pet as the reason for a need to take unexpected absence when requesting time off or for needing flexible working. So is it not time for us to recognise the benefits that pet ownership has on both our employees and our businesses, and put stronger policies in place that continue to nurture and support our employees’ relationships with their pets?1 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
On 23rd June 2016, UK voters decided in favour of leaving the European Union (EU) in a landmark referendum. Since then it’s fair to say that UK politics has seen a fair amount of turmoil. One thing we can be sure of is that, whenever it does happen, the UK’s withdrawal from the EU will have implications for workers and employers. In this blog I want to focus on what this could mean...11 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
In today's world, "human capital management" seems to be the hot topic of choice. A complete HCM solution covers all the people related processes and data in an organisation, and by its very nature can get pretty full on and complicated to implement, with greater upheaval and cost involved. For that reason, it is not always appropriate for an organisation to consider changing all aspects of their HCM in one fell swoop.6 June 2016
Following the judgement of the Employment Appeal Tribunal (9th March 2016), the question of salary sacrifice and maternity rights has been thrown into question! Was HMRC errant in providing guidance? Are employers now off the hook with provision of non-cash benefits in kind during maternity?16 May 2016
Interview by FDE TV at HR Tech London 2016. David Woodward, our Chief Product & Marketing Officer, speaks with Darina Ivanova from FDE about HR and Payroll technologies, workforce optimisation and what it means to be "digital" from an enterprise level perspective.4 May 2016
600 people attended the Ceridian Conference 2016; find out their biggest challenges in new HR and Payroll legislation.18 April 2016
In my last blog I described how keeping the labour model as simple and transparent as possible increases the chances of user buy-in whilst still generating an accurate labour forecast. Today I want to talk about how critical the flexibility of your workforce is to the successful implementation of a WFM system...14 March 2016
Our WFM System experts, describe how keeping the labour model simple and transparent could increases chances of user buy-in, whilst still generating an accurate labour forecast.15 February 2016
We thought 2013 was busy with the introduction of Real Time Information, but looking back it now seems a doddle! 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. Now seems a good time to start the preparations in earnest and put the brain in gear...25 January 2016
Welcome to the future! I am back with a new blog, this time I look at 6 technology predictions over the next 5 years that will impact the world of HR & Payroll. Who knows where we’ll be in 2020? My predictions are based on detailed research, analysis of past and current technology trends, and consumer purchasing behaviour.11 January 2016
Before the advent of the internet, applying for jobs was a fairly straightforward process. Now, with an incredible amount of technology infused into the recruitment process, there’s an entirely new approach to talent acquisition. Here are 5 ways the resume is changing in modern recruitment...4 January 2016
With Christmas upon us, payroll managers will be experiencing some annual adjustment planning with the holiday season. In this blog I explore some of the most common scenarios in December's pay cycle.7 December 2015
As an HR leader, your assignment from day to day and from month to month is to maximise employee engagement, while increasing employee retention and productivity. Your company is investing a great deal in talent – and you want to make the most of that talent. So what makes us productive, and what doesn’t?30 November 2015
Paying the living wage isn’t optional for survival, but neither should it be a problem. Lidl were the first supermarket to recognise the benefits of paying the living wage. Their stores may be no frills but their operation is efficient. Lidl’s customers, many deserting the likes of Waitrose and Sainsbury’s for all or some of their purchases, have clearly embraced the shopping experience...19 October 2015
The initial challenge of recruiting can be divided into two important parts - first is the step of sourcing, and second is evaluating whether they're a good fit. HR offices everywhere are looking for new, innovative strategies for improving in both of those areas. But is corporate recruiting via social media a worthwhile use of your time?11 August 2015
Through HR and Marketing, you can promote internal success and employee achievement to greater extents. HR can pinpoint outstanding employee performance and Marketing can spread these positive actions through internal communication channels27 July 2015
Like many, I believe that HR and Marketing are, and will, continue to move closer and closer. This belief has been further accelerated by increased and dominating use of both social media and mobile.20 July 2015
We often hear about favouritism occurring in classrooms, amongst friends, or even families, but how about in the workplace?14 July 2015
A great deal of the conversation in human capital management concerns the on-going movement of generations through the workforce. There are two undeniable trends happening in the present day - one, the baby boomer generation is gradually moving into retirement, and two, millennials are entering the office in full force.24 June 2015
Every organisation experiences conflict in one form or another, not only in the workplace but in our homes and our social life. Honestly, it's bound to happen with people working and being together with different personalities, values and culture but actually in some situations conflict can be the base for a healthy debate. However, it's not so much the conflict that causes problems and issues but how it is managed.16 June 2015
There is little doubt that HR transformation is big business with many of the leading advisory firms reporting strong demand and healthy pipelines of future work. However, while we support the importance for the HR function to evolve in ensuring it delivers optimum value to the business, we see scope for improvement in the execution of such programmes8 June 2015
The long-term goal in HR is always to drive employee retention and productivity upwards - you're given a staff with a certain number of employees on board, and your job is to maximise their output. You want every single worker under your roof to have the highest possible impact on the achievements of the company, so that in the long run, the business stays profitable and everyone's happy.20 May 2015