BDO Payroll Newsletter - April 2020

PAYROLL ON POINT APRIL 2020

CONTENTS X National MinimumWage X Statutory Sick Pay X Statutory Maternity, Paternity, Shared Payments (SMP, SAP, SPP and ShPP) X Pension contributions X Employment allowance X Parental Bereavement leave X Holiday Pay Reference period for flexible working hours X IR35 private sector reforms postponed X Share plan reporting 2020 X Class 1A National Insurance on Termination Awards X Importance of cash flow forecasting X Coronavirus – impact on Payroll

Welcome to the spring edition of Payroll on Point. This newsletter is designed to help you keep up to date with legislative changes, new developments and key dates in the future. We hope you will find Payroll on Point informative and if you have any questions on the topics raised please don’t hesitate to get in touch. Kind regards,

MARIA MASON DIRECTOR

NATIONAL MINIMUMWAGE

The Government is again increasing the National Minimum and National Living Wage rates on 1 April 2020. These changes are being made in line with the Low Pay Commission recommendations, which is an independent body made up of employers, trade unions and experts whose role is to advise the Government on the minimum wage.

A new rate applies when the next pay reference period begins on or after the date a rate increase begins, or, an employee reaches a new age bracket. The apprentice rate applies to apprentices under the age of 19 or those on the first year of their apprenticeship, only. Those who fall outside this criteria must receive the rate applicable to their age group.

As an employer, it is your responsibility to ensure your employees are paid in accordance with the guidelines provided, as BDO will not make automatic changes to staff members’ salaries to accommodate these changes. Therefore, you must advise us of any changes to rates of pay, or annual salary, effective from April 2020.

25 AND OVER

YEAR

21 TO 24 18 TO 20 UNDER 18 APPRENTICE

April 2019 (current) £8.21

£7.70 £8.20

£6.15 £6.45

£4.35 £4.55

£3.90 £4.15

April 2020

£8.72

IDEAS | PEOPLE | TRUST

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