New for 2022
HEALTH AND SOCIAL CARE LEVY MESSAGE In September 2021, the government announced the introduction of a new health and social care levy. In the 2022/23 tax year, the levy was introduced as an increase to National Insurance (NI) before becoming a deduction in its own right from 2023/24 tax year. Her Majesty’s Revenue and Customs (HMRC) has recommended a payslip message for the 2022/23 tax year to explain why the rate of NI has increased. The message reads; “1.25% uplift in NICs funds NHS, health and social care.” Commentators have criticised the message, with some describing it as too political. The CIPP has encouraged members to use the payslip message, or a similar alternative to support communication regarding the change with employees. 61% confirmed they would include the message on all payslips, and only 16% said they wouldn’t include the message at all. Unexpectedly, 3% weren’t aware of the message at all. 18% said they would include the message, but only if the payslip software did so automatically.
As evidenced earlier in this report, the payslip message is often used as a tool to communicate with employees. This research demonstrates that many businesses see the value in updating employees in this way.
Are you including the health and social care message on payslips in the 2022-23 tax years?
ONGOING IMPACT OF CJRS The coronavirus job retention scheme (CJRS) closed in September 2021, however there is an ongoing legacy for certain payroll calculations moving forwards. If an employee was furloughed on less than 100% pay during their qualifying period for maternity, the employee must have their earnings adjusted to reflect their full pay. Furthermore, any redundancy payments processed within 12 weeks of an employee returning from furlough should have reflected full pay, and not any reduced furloughed payments received when calculating average weekly earnings. The consequence of this is that 40% of respondents have had to calculate redundancy or maternity pay manually, with only 8% using a system which did this automatically. 42% weren’t impacted at all by CJRS and the remaining 10% either weren’t sure, or this scenario had not yet happened.
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