As we approach the new financial year, it’s a perfect time for employers to consider the legislative changes coming into effect April 2019. One key change coming in that impacts payroll is the payslip legislation that states employers will need to provide additional information on workers’ payslips as of April 1 2019.
The new guidance states that all workers must be given a payslip by their employer and that payslip must provide a breakdown of hours where the pay varies dependant on the time worked. For example, if a salaried worker receives a basic salary this is not dependant on hours worked and therefore can be simply stated as a whole amount. However, if a worker receives an element of pay such as overtime, which will vary dependant on hours worked, the payslip will need to show a breakdown of how many hours of work relates to that payment.
This is one example of the change and will affect all those defined as a worker by the HMRC. Review your payslips and ensure they are detailed enough in light of the changes. For further information on how RSM can assist with these changes please contact Simon Balaam.