As we welcome in the 2018/2019 tax year, should time be taken to review your payroll procedures and consider any legislative changes that may now be applicable to you as an employer? Yes.
As the year rolls from one to the next, it is easy to carry forward with ‘business as usual’. Taking time out to review your current payroll set up and processes can be easily overlooked, so let us help a little by way of a small reminder.
Remember, all employers will have to automatically enroll their eligible workers into a workplace pension scheme unless the worker chooses to opt out. Also, don’t forget that from this tax year the contribution rates have changed.
|Minimum auto enrolment contribution rates|
|Before April 5 2018||1%||2% (including 1% staff contribution)|
|April 6 2018 - April 5 2019||2%||5% (including 3% staff contribution)|
As an employer, if your your annual pay bill exceeds £3 million the Apprenticeship Levy will apply. These contributions ultimately go towards helping to choose and pay for apprenticeship training more easily. Here is more information on the Apprentice Levy.
Get something back. Claim up to £3,000 off your employer's National Insurance contributions bill. Make sure you take advantage of this this by flagging this in your payroll software.
National Minimum Wage
Be aware of the new NMW rates that came into play from 1 April 2018.
- 25 and over - £7.83
- 21 to 24 - £7.38
- 18 to 20 - £5.90
- Under 18 - £4.20
- Apprentice - £3.70
Get ahead of the game and have your P60s sent to your employees before the 31 May 2018 deadline.
We’ve got it covered
Running your business and keeping on top of your duties as an employer can prove to be timely and costly. To find out how RSM can help you reduce costs and free up your time by picking up the burden to allow you to grow your business, please contact Simon Balaam or your usual RSM contact.