The end of the tax year is upon us, and the yearly exercise of payroll updates is here. There are of course the usual suspects and more to update in SAP, and are you fully versed on all the other announcements including National Living Wage and Gender Pay Gap reporting that were made during 2015 and their requirements?
How to Manage the new National Living Wage?
April 2016 sees the introduction of the new National Living Wage, set at £7.20 for employees over the age of 25. There was no standard delivery for any checks or reporting to support the National Minimum Wage, and so it is not expected there’ll be anything delivered to help you manage the new National Living Wage either. But as an employer you need to ensure that you are paying the new NLW to those who quality and the NLW will be enforced as strictly as the the NMW is now. The level of management and monitoring within your Payroll is up to you, and could range from simple warnings within the Payroll to manage any employees who fall below the NLW rate to be amended manually, to a more automated process for a solution that could automatically uplift any rates below the threshold to the required level in the Payroll run itself. Whichever is the best fit for your organisations, get in touch with us today to discuss a solution.
The important thing is to act now; it will take time to identify any employees that need changes, and to get those changes made and to ensure ongoing compliancy.
Gender Pay Gap Reporting: To Report or Not To Report?
The previously announced Gender Pay Gap reporting requirements were original indicated to come into force this Spring, but have been pushed back with a follow up consultation on the matter having been announced on 12th Feb. The draft regulations so far will required analaysis and publishing of the overall mean and median pay gaps across all normal earnings, and also differences in means bonus payments across genders. With the reporting becoming an annual task once it comes into regulations, that is then published on your organisations website and uploaded to a Government site.
It looks like there could be a requirement for a ’snapshot‘ report in April 2017, with formal annual reporting from April 2018. So; a item to put on the longer term plans for changes.
However, managing diversity and reigning in on wage discrimination on gender and other criteria is definitely the right thing to do, be it with or without government regulations. iProCon has helped employers with in that respect before, so please get in touch if you want to act pro-actively and discuss your options.
In the Autumn statement, an Apprenticeship Levy was announced that will be payable next year from April 2017. The levy currently looks to be 0.5% of the paybill for all employers with a paybill of £3 million or more per year, and will payable through PAYE. The £3 million threshold should be calculated on your total employees‘ earnings.
Another change that, whilst requiring no action on your part now, you should bear in mind for any longer term planning for your organisation, and it looks like tax year 2017/18 change will be a busy one.
Our full blog post of analysis of the new year tax and legal changes will following in the next couple of weeks for in depth analysis of all the changes you need to apply to your SAP payroll as well as the usual errors known by then. Watch this space to ensure that there are no nasty surprises come April!