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If you’re looking for an answer to the question “what is automatic enrolment?” then look no further than this course. It highlights employers’ challenges, responsibilities and obligations to all parties involved with pensions and auto-enrolment, to enable compliance. You will leave this course equipped with the knowledge and skills to administer this vital and much- changed arena. Automatic enrolment and pensions for payroll
You and your employer will continue to make pension contributions if you’re getting paid during maternity leave. If you’re not getting paid, your employer still has to make pension contributions in the first 26 weeks of your leave (‘Ordinary Maternity Leave’). They have to carry on making contributions afterwards if it’s in your contract. Check your employer’s maternity policy.” The application of attachment of earnings orders (AOEs) Q: Can a direct earnings attachment (DEA) be applied with two council tax AOEs? A: No more than two council tax AOEs can be operated at the same time. However, a DEA can be applied in conjunction with the two council tax AOEs. You would need to prioritise the AOEs, as a council tax AOE takes priority over a DEA, and you’d also need to consider the protected earnings.
“Normal pay day Regulations define a ‘normal pay day’ as either the pay day specified in the contract, or the day on which they are usually paid if: ● they have no contract, or ● their contract does not specify a pay day.”
Director NI
Could someone explain the rules surrounding NI when an employee becomes a diretor?
Q: We have someone who was an employee from April 2023 and then became a director from December 2023. We’re struggling with how to calculate the NI for the tax year 2023/24. A: The calculations for the individual will need to be done manually / separately e.g., the employee earnings cannot be added to the director earnings. Also, there’s a blended rate for the director earnings for tax year 2023/24 of 11.5% for employees. You should prorate the annual earnings for the director earnings from the point at which they were appointed. Please see the following link and below for guidance on this: https://ow.ly/ MeGF50R6F8J: “Earnings paid for a period before appointment Earnings paid to a person before the date on which they were appointed as a director which relate, for example, to when they were employees of your company, are not included with the earnings paid after that date when the director’s NICs are assessed. Earnings paid to a person after the date on which they were appointed as a director which relate, for example, to when they were employees of your company, are included with the other earnings paid after that date when the director’s NICs are assessed. Use the director’s earnings period (annual or pro rata annual).” n
Statutory maternity pay (SMP) calculations
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What happens to the calculations for SMP when payments are made earlier than the contractual pay date?
Q: We’ve been discussing the calculation of average weekly earnings (AWE) for SMP when payments are made earlier than the contractual pay dates (due to a payday falling at the weekend, for example). When the actual payday falls within the qualifying week, but the contractual payday falls into the following week, what should we do for the purposes of paying SMP? A: HMRC states that it’s the ‘normal’ pay date which should be used for calculating the AWE for SMP. If the normal payday is the 24th of the month, this would be the date used to work out the AWE and not the date the employee was actually paid on. The following link and below information corroborate this: https://ow.ly/ okle50R6GmV:
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| Professional in Payroll, Pensions and Reward |
Issue 100 | May 2024
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