REWARD
l the application of the post-employment notice pay (PENP) rules where employees don’t work their full notice period. This should include the key principles which underpin the tax / NIC rules, as well as the key reporting requirements. Additionally, the complexities of trickier areas relating to termination settlements, including injury and disability payments, damages and hurt feelings should be covered.
to remind everyone about the key compliance aspects.
The national minimum wage (NMW) HMRC is very active in carrying out audits to recover arrears for workers and being subject to such a review isn’t something to be underestimated. Employers could face a penalty of up to 200% of the arrears, but this can be reduced if employers pay within 14 days of a notice of underpayment being issued by HMRC. Worse still, the employer could also be named and shamed for their errors; not the attention wanted by any employer hoping to attract and retain employees. Having the relevant skills in-house to carry out a review in your own timescales with the assistance of a NMW specialist can be invaluable and takes a lot less time than undergoing an HMRC NMW audit. Errors can be identified and corrected at the same time as providing training. Common errors include: l deductions from workers’ wages which can take them below the NMW rate l failing to pay workers for all the time they have worked, such as when they worked overtime or attended a team meeting outside their usual working hours l paying the incorrect apprenticeship rate, when the apprentice didn’t have the correct agreements in place, or where they were 19 or over and past the first year of their apprenticeship. These are just a few key areas where training can help to provide you with a level of knowledge that will assist you in your day-to-day work. At PSTAX, we aim to support payroll professionals and human resource (HR) specialists with in-depth training in all the above areas, plus much more. They say that knowledge is power – upskilling payroll professionals can provide organisations with assurance that their HR and payroll employees are equipped with the knowledge needed to provide an excellent and compliant service to all their employees. n
Travel and subsistence Changing work patterns over the past few years – exacerbated by the pandemic and an increase in agile working – can lead to difficulties in establishing what’s classed as a permanent workplace and what’s classed as a temporary workplace for tax / NICs purposes. Expenses policies must be carefully considered to ensure they’re compliant and don’t result in any unwanted liabilities. The policing of those policies by those paying mileage and subsistence expenses can be challenging. Therefore, training which covers the tax / NIC rules relating to travelling expenses with particular emphasis on the trickier issues that can arise can be invaluable. Training needs to explain HM Revenue and Customs’ (HMRC’s) rules for travel for tax / NICs purposes and the key definitions involved, i.e. permanent workplace, temporary workplace, 24-month rule etc. The more difficult issues here could include: l people with multiple workplaces – employees with responsibilities across different locations l area-based workers – employees with no permanent workplace l secondments – how the ’24-month’ rule works in practice l substantially ordinary commuting and the (often misunderstood) ten-mile rule, and its implications for shorter / longer journeys l home-based employees – the impact on mileage claims l agile workers – part home-based, part office-based l the use of hubs – downsizing of office locations.
Expenses and benefits Training courses should cover the rules regarding more complex benefits such as:
l travel and subsistence l living accommodation l relocation
l beneficial loans l cars and car fuel.
Other areas to also examine are the key P11D issues for employers and the ‘payrolling’ of benefits, pay as you earn (PAYE) settlement agreements, the ‘making good’ provisions and grossing up. The training should include plenty of practical examples and case studies to inform better understanding in these areas. For organisations with salary sacrifice arrangements in place, training should also provide an essential update on areas to focus on. The optional remuneration arrangements (OpRA) legislation presented a significant change which required substantial attention from employers to ensure they remained compliant in this area. The rule changes shifted attention from certain schemes where the savings are no longer possible to those where savings remain. Training should cover each of the salary sacrifice schemes relevant to the organisation
“Training in the payroll arena covers a diverse number of subjects which need to be dealt with properly if reputational and costly mistakes are to be avoided”
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| Professional in Payroll, Pensions and Reward |
Issue 97 | February 2024
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