The Chartered Institute of Payroll Professionals
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National Insurance contribution rate increase written into legislation 11 March 2022
The Social Security (Contributions) (Rates, Limits and Thresholds Amendments and National Insurance Funds Payments) Regulations 2022 have been laid before Parliament, taking effect from 6 April 2022. The increase in National Insurance contributions from April 2022 has now been announced and approved as anticipated. The legislation allows for the annual re-rating of National Insurance contribution rates for calculating class 1, class 2, class 3 and class 4 liabilities. The CIPP recommends that payroll departments work hard to educate their workforce and inform them of the upcoming rates, as communication is key to managing such unprecedented changes. All class 1 and class 4 contributions will be subject to an increase of 1.25% in the contribution percentage rate. Below is a table comparing the current rates to the new ones. Rate Current rate 2022-23 rate
Main employee rate
12%
13.25%
Married women’s rate
5.85%
7.1%
Deferred rate
2%
3.25%
Rate on employee’s earnings above UEL
2%
3.25%
Main employer rate
13.8%
15.05%
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SSP Rebate Scheme closes on 17 March 2022 14 March 2022
Originally implemented in March 2020, the Statutory Sick Pay (SSP) Rebate scheme allowed eligible employers to reclaim up to two weeks SSP paid to covid stricken employees. The first round of this scheme ran up until September 2021. As a result of the omicron variant, this scheme was re-introduced in December 2021.
Eligibility criteria for round two of the scheme are:
• You have already paid your employee’s sick pay
• You’re claiming for an employee who’s eligible for sick pay due to coronavirus (COVID-19)
• you have a PAYE payroll scheme that was created and started on or before 30 November 2021
• you had fewer than 250 employees on 30 November 2021 across all your PAYE payroll schemes
The Coronavirus Act, which lays into law temporary provisions such as this, is due to come to an end on 24 March 2022. However, the SSP Rebate scheme will end on 17 March 2022, one week earlier, this will allow employers 1 week, up until 24 March 2022, to submit claims before the provisions end. Make sure you check your records to see if you can make a claim before the deadline. It is also worth noting that claims can be made for the same employee in the separate rounds of the scheme, for up to two weeks in each. From 25 March 2022 normal SSP rules will apply.
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The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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