All Change for Payslips in April

All change for payslips in April
Alongside the arrival of Making Tax Digital in April comes changes to the information required to be given on payslips.
These changes as well as extending the requirement to provide an itemised payslip to all workers, not just employees. In addition Employers must now also show the number of hours worked on the payslip not just a total pay figure.
The key points to note are as follows:
• Hours can be shown either as a single total of all such hours in the pay period or they can be broken down into separate figures for different types of work or different rates of pay;
• It must be clear which pay period those hours were worked in;
• Hours only need to be shown for pay periods which begin on or after April 6 this year;
• Payslips may be provided in either a physical format or an electronic version that the worker can print;
• Salaried workers with no variable pay do not need any changes to their payslips.
HMRC have provided guidance (add link to HMRC website), which details how to deal with variations caused by unpaid leave or statutory sick pay and also includes several case studies – e.g, a salaried worker with additional variable pay, a worker paid by the hour, term time and day rate workers – which may assist employers in putting the new legislation into context.
A worker who thinks that they have not received a payslip, or that the payslip they have received lacks the required information, may bring a claim before an employment tribunal.

Another change in April is the increase in minimum pension contributions required.

Employee minimum contribution Employer minimum contribution
Current 3% 2%
From 5th April 2019 5% 3%

Finally April will also see a rise in the national minimum wage.

Year 25 and over 21 to 24 18 to 20 Under 18 Apprentice

April 2018 (current rate) £7.83 £7.38 £5.90 £4.20 £3.70

April 2019 £8.21 £7.70 £6.15 £4.35 £3.90

Please contact us if you have any queries about the new legislation.
Alternatively, you may wish to consider outsourcing your payroll to our friendly and professional team, who will ensure that your employees are being paid properly and your compliance responsibilities are being taken care of.