Category Archives: Payroll

PM+M payroll shortlisted at The Rewards 2018

We are pleased to announce that for a second year running, our PM+M payroll team have been shortlisted for The Service Provider Team Award at The Rewards 2018.

The popular ceremony, The Rewards, previously the payroll world awards, is returning for its 7th year and is known as the leading independent awards for payroll, HR and reward professionals in the UK.

The ceremony will be taking place at Hilton London Bankside on November 7 and is the most distinguished event on the industry’s calendar. It is the perfect opportunity to celebrate high achievements and excellence in payroll, reward and related sectors.

Entrants must demonstrate outstanding performance and the judges will be looking for evidence of success in one or more of the following criteria;

  • Outstanding effort under testing circumstances
  • Significant improvements in performance
  • Achievement of targets/incentives
  • Achievement of training/qualifications
  • Implementation of new procedures or systems
  • Excellent teamwork within their own team or with other departments
  • Excellent customer service record

Providing outsourced payroll solutions to over 400 clients, our payroll team at PM+M are highly regarded as one of the leading payroll providers in the North West. Over the past year we have seen many changes to our way of working, having implemented several changes that have enhanced both our procedures and our service delivery to clients.

Julie Mason – head of payroll at PM+M – commented: “The PM+M payroll bureau has grown tremendously and seen a digital transformation over the last twelve months. We have introduced new systems and procedures to improve our services for clients and ensure we provide great value for money.  We work really hard to help our clients and are thrilled to be nominated.  We can’t wait to find out the results!!”

Welcoming more members to our growing payroll team

In celebration of National Payroll Week, we are pleased to welcome two members to PM+M’s growing payroll team, our new payroll administrator, Andrea Wellock and payroll apprentice, Mohammed Aamir Patel. The addition of Andrea and Mohammed to PM+M has taken our payroll department to a team of eight, allowing us to dedicate even more time to helping our clients achieve more through their outsourced payroll solutions.

Whilst Andrea joined our team a few months ago, Mohammed joined our team only this week, following our appointment of six other apprentices across the firm. Working across all teams at PM+M, each apprentice will be studying towards a recognised qualification over the next three years, as well as gaining invaluable ‘on the job’ training.

Jane Parry, managing partner of PM+M, commented: “As a firm, we are fully committed to making sure that we invest in young local talent, so the apprenticeship programme is a hugely important part of the business. We are confident that these new recruits will further enhance the level of service that our clients have come to enjoy and we are really pleased to guide them through their studies and watch them develop as professionals.”

 

24/7 work culture – are you complying with minimum wage?

The advent of new technology has transformed the way we work and live. This dramatic change has wiped-out the 9-5 office culture, creating endless possibilities and making it far easier to work outside of the workplace. The average working week in the UK has risen to 42.7 hours for full time employees* so, how does this impact on your team and their salary?

 

What does this mean for employers?

Recently, a case was highlighted in Ireland where an executive was rewarded €7,500 after arguing that she was required to deal with out-of-hours work emails. This led to the individual working more than the maximum 48 hours a week set out in Ireland’s Organisation of Working Time Act 1997.

Obviously, enhanced communication can make our lives easier, but we can equally fall victim to constantly being tied to our job. In National Payroll Week our payroll team are encouraging employers to address the necessary policies to ensure that their employees can switch-off entirely.

No emails out of working hours or during holidays, no staying at the office outside normal hours, unless necessary and no calls to mobiles outside of the employees normal working hours, are just a few suggestions. Other measures include work-sharing and ensuring employees have a healthy and productive work-life balance.

Our digital mobility and capacity to work for longer periods of time and at differing hours can be very productive but also counter-productive for employee’s well-being and ultimately affect the salary. It is important that organisations work with individuals to produce guidance that is effective for all.

Julie Mason, who heads up the PM+M payroll team said: “Individual requirements for flexibility can make ‘a one for all policy’ difficult, but what is most imperative is to ensure that everyone can benefit and that a supportive culture is developed which focuses on the well-being of all team members. This in turn will mitigate any risk to the employer on dropping below the minimum wage.”.

If you would like to discuss any payroll issues with Julie Mason or any member of the payroll team, please contact our Payroll Services Manager, Julie Mason, on 01254 679131 or via email at julie.mason@pmm.co.uk.

Childcare Vouchers vs Tax-Free Childcare

Do you offer the childcare voucher scheme to your team ? The current tax-free scheme has proven very popular with working parents, allowing them to earn up to £55 per week in childcare vouchers. The scheme will soon be replaced by a new government initiative meaning that there are a few things that you, as a business owner, will need to consider.

You are still able to offer the current scheme to any eligible employees if they sign up before October 4, 2018. However, it is advised that you encourage your team to apply as soon as possible, as they must have received the first set of vouchers before the cut-off date. Alternatively, you could take this opportunity to stop your involvement in the scheme altogether. Whichever way you decide to proceed, it is vital that you inform your employees appropriately.

After the cut-off date, employees will only be eligible for the government led programme, which requires no input from yourself. The new scheme will require team members to deposit funds into an account on the HMRC website where the government will also contribute up to £2000 per child, per year.

The new scheme: what is Tax-Free Childcare?

The new scheme will be open to single parents/couples who work eight or more hours a week (including self-employed individuals), and who pay for Ofsted registered childcare for a child under the age of 12, or under 17 if the child is disabled.

Eligible families will receive 20% of their annual childcare costs paid for by the government. In other words, for every 80p in the £1 contributed by parents, an additional 20p will be funded by the government up to a maximum total of £10,000 per child per year.

The new scheme is open to all qualifying parents, unlike the current childcare voucher scheme which is only available to people whose employer offers the scheme.

New scheme vs current scheme

Childcare voucher scheme Tax free childcare
You can only apply for them if your employer offers them Anyone can apply
You do not have to earn any minimum amount and only one parent needs to be working You will need to earn a minimum of £115.00 per week and both parents need to be working
The maximum age where a child’s childcare can be paid for is 15 years (16 years if disabled) The maximum age where a child’s childcare can be paid for is 12 years (17 years if disabled)
There is no maximum amount of monies earned Parents must earn less than £100,000 per year

If you have any questions regarding the changes to the childcare scheme, please do not hesitate to get in touch with our Payroll Services Manager, Julie Mason, on 01254 679131 or via email at julie.mason@pmm.co.uk.

When Will Auto Enrolment Contributions Increase?

The minimum contributions rates for automatic enrolment are set to increase from 6 April 2018 and again from 6 April 2019. Employers will be required to increase the amount of their contributions into their employees’ automatic enrolment pension scheme. Employees’ own contributions will also increase.

 

The table below explains:

Date effective

Employer minimum contribution Employee minimum contribution

Total minimum contribution

Currently until 5 April 2018

1%

1%

2%

6 April 2018 to 5 April 2019

2%

3% 5%
6 April 2019 onwards 3% 5%

8%*

*subject to scheme set-up

Pensions Act 2008, every employer in the UK with at least one employee must put certain staff into a pension scheme and contribute towards it.

All employers that were in business prior to 30 September 2017 had a staged approach to auto-enrolment. However, since 1 October 2017, all new businesses have had to introduce a pension scheme immediately within the minimum 2% contribution level (usually split 1% employer and 1% employee).

What should you do to prepare?

Employers must act to ensure they are prepared to implement the increases correctly to all affected employees.

Employers should review contracts and pension announcements to see if the increased contributions apply automatically to their workers and employees.  If not, then employers may need to consider changes to contracts to increase member contributions which can also trigger a minimum 60-day consultation before the change can be made.

Future rises

The contribution levels will continue to rise until the employer is paying a minimum of 3% towards the pension and the total contribution reaches at least 8% – with the employee making up the rest.

Contact us

If you need advice on understanding these increases, implementing changes or help with any of your auto enrolment needs please contact our wealth management or payroll team on 01254 679131.

PM+M Wealth Management Ltd is authorised and regulated by the Financial Conduct Authority.

The Apprenticeship Levy

shutterstock_305418650The new apprenticeship levy will have its challenges but have you considered the benefits of this new legislation when it comes into effect in April 2017?

The Government have already made their mark by abolishing the employers’ National Insurance Contribution (NIC) for apprentices under the age of 25 back in April 2016. This new levy is part of their commitment to increase the quality and quantity of apprenticeships available in England  in order to reach their goal of 3 million by 2020.

The Levy will be payable on payroll bills of over £3 million per year at 0.5%. This will affect many businesses, who perhaps haven’t even considered apprenticeships for some time.

All employers will receive an allowance of £15,000 to be offset against the payment of the levy.  This levy “pot” is then to be used on apprenticeship training and assessments from an approved provider only.

The Government will top up levy contributions by 10%.

The payments for apprentices studying English and Maths will be paid direct to the providers and not taken from the levy payments.

This is essentially another tax. However, businesses can benefit from this by utilising the levy to upskill existing team members. There is a huge employment demand upon us with nearly 21,000 people due to retire in the next few years.

Don’t waste this opportunity – look into your options now and prepare.

If you’re not sure whether the levy will affect you and want advice on this or other payroll matters, please contact Julie Mason at julie.mason@pmm.co.uk or call 01254 679131.

 

HMRC to take tax debts from pay packets

HMRC tax debts from pay packets

HMRC are set to take tax debts from high earners’ pay packets, under new powers that come into force later this week. This measure was discussed in the 2013 budget and implemented through secondary legislation. It means that HMRC will be able to collect up to £17,000 a year of tax debts directly from pay packets, which is a significant increase from the current limit of £3,000.

The change is expected to raise £115m in the 2015-16 tax year and has been overshadowed by new HMRC powers to recover debts directly from bank accounts. Despite receiving intense criticism, HMRC continues to defend its crackdown. The matter may end up being decided by the next government, as the May general election is likely to result in a reduced Finance Bill.

It should be noted that this proposal has been introduced on a sliding scale, consequently only individuals earning more than £90,000 would face a £17,000 deduction and this will not affect those earning less than £30,000, who will still be subject to the £3,000 limit. HMRC have also issued a guarantee that it would not take more than half the salary of those concerned. This new measure has caused less controversy than the plans to deduct the money straight from bank accounts, as it spreads the payments over the year via a PAYE coding notice.

Experience would suggest that once HMRC start interfering with your PAYE code number it can easily get confusing therefore those affected should seek advice and also take care to ensure it is removed from the code for the following year.

For advice on this, or any other tax issues, contact Jane Parry jane.parry@pmm.co.uk or any member of the tax team.

SME Finance Update: Payroll and Employment News April 2014

2014-04-09 16.32.37

The PM+M payroll team – hard at work!

There are 4 key things you and your business need to be aware of this April:

1. Employment Allowance

Don’t miss your chance to claim the new Employment Allowance – The Government have introduced the new tax cut for businesses and charities and could take up to £2,000 off your employer National Insurance Contributions (NICs) from 6th April 2014.

The allowance will be available to eligible businesses and charities, regardless of size and can be claimed back through your payroll processes by notifying HMRC you are claiming this on your RTI submissions.  Claims can be made up to 4 years from the date the allowance applies.

The Employment allowance is only applicable to employer class 1 NICs and cannot be used against Class 1A, Class B NICs or offset against late payment penalties or interest.

There is only one allowance per employer, no matter how many PAYE schemes you operate. If you operate more than one company, you can choose which scheme takes advantage of the allowance.

The new Employment Allowance is intended to be an incentive for Job creation and assist in the recovery of the private sector. Although, you may spend this saving how you please.

The allowance will give the employer the opportunity to employ someone with a starting salary of up to £22,400 without paying any employer NICs at all.

2. Student Loan Deductions

The repayment threshold has risen from 6th April 2014 in line with the Retail Price Index.  Therefore a Plan 1 loan is repaid at 9% of NIC’able pay above the threshold being £16,910 per annum. (Or £1,409.16 per month or £325.19 a week.)

3. Statutory Sick Pay – Percentage threshold Scheme

From the 6th April 2014 the percentage threshold scheme has been abolished and the recovery of Statutory Sick pay (SSP) will no longer apply.

Unfortunately this change does not affect an employer’s responsibility to Pay SSP and retain SSP records to show they are meeting employer obligations, but records may now be kept in a way that suits the employer.

4. New Absence Rates for 2014/15

Statutory Sick Pay (SSP) – £87.55 per week

Statutory Maternity Pay (SMP) – Higher Rate: 90% of average weekly earnings for the first 6 weeks

Statutory Maternity Pay (SMP) – Lower Rate: the lower of £138.18 per week or 90% of average weekly earnings

Statutory Adoption Pay (SAP) – Lower of £138.18 per week or 90% of average weekly earnings

Ordinary Statutory Paternity pay (OSPP) – Lower of £138.18 per week or 90% of average weekly earnings for a maximum of two weeks.

If you have any questions or would like further information please drop me (Julie Mason) an email: julie.mason@pmm.co.uk or call: 01254 604311.

I’d love to hear your feedback on our April update, so feel free to leave a quick comment at the bottom of this post.  And, if you found this information useful you can use the social sharing icons to share this post on social media platforms.

We’ll be back soon with another payroll and employment news update.

Julie Mason – Payroll Services Manager, PM+M Accountants

The future is bright…………the future is e-Payslips

Have you considered going green with your employees’ payslips?

Not only would you be helping the environment, but it is a more cost effective and secure way of supplying your employees with their payslips.

If you currently hand deliver payslips, consider not having to walk around the building handing payslips out, not having a collection of them building up in your drawer.  Your time can be better spent focusing on your business.  Similarly, if you post them, think of the regular postage cost and the risk of things going astray occasionally.

ePayslips are a brilliant solution to all of this.  Simply opt for ePayslips and these can be uploaded to a secure portal for your employees to retrieve electronically.  The service is easy to use, secure, cost effective and eco-friendly.

ePayslips will be available at each pay frequency on the published date, that you, the employer specify.  Employees will have their own employee ID and PIN.  The ePayslips website will retain historical payslips within the employee’s record and these will be stored there for future viewing and printing.  ePayslips also has an employer view which will enable you to get an overview of ePayslip information held on the internet.

Make it your own – you can personalise the payslips to your business and can add your company logo.

ePayslip on the go……. Employees are now able to view their ePayslips on a mobile device.

 

Make your life easier and call our Payroll Team to set up on 01254 604311.

Julie Mason – Payroll Services Manager

How much do you really know about the Construction Industry Scheme?

Are you a contractor or an employer?

Do you have time to check your subcontractor’s status with HMRC?

Are you struggling to keep up with providing statements?

Then there’s the monthly returns to be sumitted to HMRC by the 19th of each month, not to mention the fines if it’s late!

The construction industry tax regulations are only relevant when all 3 of the below elements are present:

  1. Construction Operations
  2. Self Employed Subcontractor (or Subcontractor Company or partnership)
  3. Contractor

One of the main points to consider is whether an individual subcontractor is really self-employed. If you get this wrong, it could become very costly.

If the indicators below are present then the individual is likely to be an employee:

  1. Set Hours
  2. Timesheets
  3. Paid an hourly rate
  4. No substitute allowed
  5. Contractor controls the individual
  6. Contractor pays for all the individual’s tools and equipment

Furthermore if there is a mutual obligation in that there is an on-going obligation to offer work on a regular and continuing basis by the contractor to the individual and there is an obligation for the individual to accept, carry out and perform all the work offered then the individual is highly likely to be an EMPLOYEE.

An individual is regarded as a self employed subcontractor if, under the contract, he is under a duty to the contractor to carry out the operations, or to furnish his own labour and some or all of the below apply:

  1. No Timesheet
  2. Flexibility
  3. Minimal control by the Contractor
  4. A substitute may be sent in an individual’s place
  5. The individual is paid on completion of work
  6. The individual provides and pays for his own tools

Once you have determined if the individual is a true subcontractor, you then have to check their status with HM Revenue and Customs by verifying their personal details and UTR number.  HM Revenue and Customs will then confirm how you should tax the subcontractor.

All of this can take time that might be better used running your business.  Add on to this the risks of getting it wrong and incurring penalties and it makes outsourcing your CIS returns to us an easy decision.

Let us prepare your subcontractor returns – we will provide the subcontractors with statements each time they carry out work for you and we will submit your electronic returns to HM Revenue and Customs by the 19th of the following month.  Saving you time, hassle and money and giving you peace of mind.

For more information contact Julie Mason on Julie.mason@pmm.co.uk or 01254 604311