The new tax year will see a number of changes in the world of payroll.
As of April 2019 the National Minimum Wage will increase, as will Statutory Sick Pay, and Maternity / Paternity / Adoption Pay.
The rate of pension contributions will also increase and all employees will have the right to receive an itemised pay statement.
Here is what you need to know:
National Minimum/Living Wage
The rates for both National Minimum Wage and National Living Wage will increase on April 1, 2019.
|
Year |
25 and over |
21 to 24 |
18 to 20 |
Under 18 |
Apprentice* |
|
April 2019 |
£8.21 |
£7.70 |
£6.15 |
£4.35 |
£3.90 |
*Apprentices are entitled to this rate if they are aged under 19, or aged over 19 and in the first year of their apprenticeship.
Statutory Sick Pay
As of April 6, 2019 Statutory Sick Pay (SSP) rates will increase from £92.05 to £94.25. Note that if an employee earns less than £118 per week they will not be entitled to any SSP.
Statutory Maternity / Paternity / Adoption Pay
As of April 7, 2019 Statutory Maternity/ Paternity / Adoption Pay rates will increase from £145.18 to £148.68. Note that if an employee earns less than £118 per week they will not be entitled to any statutory pay.
Itemised payslips
As of April 6, 2019 all employees will have the right to receive an itemised pay slip.
Where pay varies according to time worked the employer will have to include the total number of hours worked for which variable pay is received.
This can be done as an aggregate figure or separate figures for different types of work or different rates of pay.
Pensions
Contributions for automatic enrolment pensions will increase from April 6, 2019.
Under the Pensions Act 2008, every UK employer must provide a pension scheme for their employees and contribute towards it.
It is compulsory for all employers to automatically enrol their employees into a pension scheme, even if they have one employee.
The contributions are required to increase over time, this second increase will see total contributions jump from 5% (current rate) to 8% (April 6, 2019 rate).
The minimum contribution (2019) by an employer will be 3%, the 5% shortfall is then paid by the employee.
The table below demonstrates the phases of contribution increases*
|
Date effective |
Employer contribution |
Employee contribution |
Total minimum contribution |
|
Current rate until April 5, 2019 |
2% |
3% |
5% |
|
April 6, 2019 onwards |
3% |
5% |
8% |
“The minimum amount paid into your workplace pension, both by the employer and employee, is going to increase on April 6 this year,” said Zoe Horswill, payroll manager at Ellis & Co.
“The increase will be automatic so does not require any action.
“However, we are reminding clients about re-enrolment, which takes place three years after your auto-enrolment start date, and every three years thereafter.
“Employers will have to re-enrol all staff members who want to contribute to the scheme, employees who opted out will need to opt themselves out of the scheme once again.”
For further information about any of the above changes, or any other payroll matter contact Ellis & Co on 01244 343504.
*Figures from HMRC