BACS provide a handy table which reminds payroll professionals of the dates in which payments will need to be processed so that they are paid to their employees on time.
Many employers decide to pay employees’ wages earlier in the month of December so that monies are received prior to the Christmas break. It is important to remember that if you change your pay date for this very reason, you will need to ensure that when you submit your Full Payment Submission (FPS) for that period, that the payment date remains the same as the usual pay date. This easement was originally implemented back in 2018, however, as detailed in the December 2019 Employer Bulletin, HMRC advised that this easement would become permanent for years to come. Whilst employers may feel that they are ‘helping out’ employees by paying them earlier, if the usual payment date is not entered, it could in fact have the opposite affect if those employees are in receipt of universal credits.
The same also applies when payments are made earlier due to the usual pay date falling on either a bank holiday or a weekend (non-processing days).
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Increases to the real Living Wage confirmed 10 November 2020
The Living Wage Foundation has confirmed that the Real Living Wage has been increased to £10.85 in London (an increase of 10 pence), and £9.50 (an increase of 20 pence) in the rest of the UK.
These are the rates set for 2020-21 and will mean that over 250,000 individuals, working for nearly 7,000 employers, will see an increase to their wages. Data shows that, since 2011, more than £1.3 billion in extra wages has been directed to low-paid workers, with £800 million of that sent to those working in key worker industries. Approximately £200 million has been awarded to low-paid workers since the start of lockdown. Research carried out by the Living Wage Foundation indicates that a fifth of employees, or 5.5 million staff, are still paid below the level of the real Living Wage. Living Wage rates are calculated independently and are determined on the basis of the amounts that people need to live on, to cover their everyday needs. They are not to be confused with the National Living Wage (NLW) rates that are set out by the Government each year, which must be paid by employers to the majority of staff aged 25 and over. The current rate for tax year 2020-21 is £8.72 per hour. The UK real Living Wage rate is 78 pence higher per hour than the NLW, and the London Living Wage is £2.13 more per hour. More than 800 employers have accredited with the Living Wage Foundation since the start of the breakout of coronavirus, and they have joined a network of nearly 7,000 businesses across the UK who have opted to pay the real Living Wage to their staff. Living Wage Week, which runs from 9-15 November 2020 celebrates those employers that have chosen to ensure that their employees and sub-contracted staff receive the real Living Wage. The rates that have been announced should be implemented by employers as soon as possible, but within six months of the date of the announcement, meaning that employees should be receiving the new rate by 9 May 2021 at the very latest if work for an accredited Living Wage employer.
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The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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