CIPP comment
The CIPP’s Policy team will be producing a survey on the topic of NLW and NMW rates for application from April 2022, to collate the views of payroll professionals prior to submitting our formal consultation response to the LPC. In addition to this, any CIPP members holding full membership and above will have the opportunity to participate in a virtual roundtable thinktank meeting, attended by Commissioners of the LPC, who will be listening to your views and opinions on the future of the NLW and NMW. More details will be available shortly.
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Update to National Minimum Wage Regulations – record-keeping requirements 29 March 2021 Payroll professionals should be aware of the National Minimum Wage (Amendment) Regulations 2021, as a new requirement for employers to retain records for National minimum Wage (NMW) enforcement purposes for a period of six years, as opposed to three, has been introduced. The Regulations amend the National Living Wage (NLW) and NMW rates for use from 1 April 2021. The NLW age limit has been lowered so that workers aged 23 or over will now qualify for it, and the rates applicable to each of the other NMW age brackets have also been altered. Additionally, the accommodation offset amount has been uplifted. The period of time for which an employer must retain records for the purposes of NMW enforcement will double (from three years to six), following a recommendation from the Director of Labour Market Enforcement (DLME). This also ensures that the length of time records must be kept by employers is aligned with the period of time for which employers could be issued with a notice of underpayment in relation to underpayment of the NMW.
This extension also applies to records made prior to the instrument coming into force (1 April 2021), where employers were already required by regulation 59 to retain the records immediately before the instrument coming into force.
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Off-payroll Working
Public sector contractors will be eligible for the Coronavirus Job Retention Scheme 3 April 2020
In guidance notes published by The Cabinet Office, it has been confirmed that off-payroll contractors working through Personal Service Companies (PSCs) within public sector organisations, will be eligible for the furlough scheme.
The document, which is six pages in length, makes it clear that any contingent workers, inclusive of those who are on short term contracts or who have hours that vary can apply for the Coronavirus Job Retention Scheme, where they work within the public sector. There is no indication at the time of publication that this eligibility will be extended to off- payroll workers in the private sector. The off-payroll workers need to be in the middle of ongoing contracts for central government departments, their executive agencies or non-departmental bodies, in order for them to claim 80% of their pay up to a cap of £2,500 per month, for a minimum period of three months. This will also include any contingent workers in the NHS.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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