There are quite a few employment law changes from April 2020 that will affect your payroll.
New pay rates from 6th April 2020:
The National Living wage for over 25 year olds increases to £8.72 per hour from £8.21.
The National Minimum Wage for 21 to 24 year olds increases to £8.20 per hour from £7.70.
The National Minimum Wage for 18 to 20 year olds increases to £6.45 per hour from £6.15.
The National Minimum Wage for under 18 year olds increases to £4.55 per hour from £4.35.
The weekly earnings threshold for National Insurance and Statutory payments increases from £118 to £120 per week.
Statutory Sick pay increases from £94.25 to £95.85 per week.
Statutory Maternity/Paternity/Bereavement/Adoption Pay increases from £148.68 to £151.20 per week.
The Employment Allowance increases from £3000 to £4000 per year but will no longer apply to large companies or groups whose total Class 1 NICs for 2019-20 is greater than £100,000. This allowance needs to be claimed each tax year and included in the first Employer Payment Summary submission.
Student loan annual earnings threshold have increased:
Plan 1 £19,390
Plan 2 £26,575
Post graduate £21,000
Class 1A employer NIC is now due on termination payments over £30,000.
Holiday Pay calculations: the reference period for calculating holiday pay increases from 12 to 52 weeks for variable pay workers.
Employers that engage ‘off-payroll’ workers will become responsible for determining their employment status any paying NICS for those who are deemed to be employees.