Payroll
The autumn Budget The 2021 autumn Budget laid out several changes that would impact
government’s target for minimum wage. On 1 April 2022, the national living wage (NLW) will increase to £9.50 per hour. In 2021, the real living wage (RLW) was set at £9.50, the key difference being that this applies to everyone aged eighteen and over. The new RLW rates were confirmed in November and are set at £9.90 per hour across the UK, and £11.05 in London. The increase in the NLW will be welcomed by many, but with a 1.25% increase created by the social care levy, and a further 6.6% rise in NLW, employers will be looking to introduce measures to offset additional employment costs. These measures could see future rises in the overall cost of living as the costs are passed on to the consumer. Payroll teams will also need to evaluate the payroll carefully, taking into consideration salary sacrifice arrangements and all working hours to ensure that employees do not fall into a non-compliant state when the increase becomes effective.
the introduction of ethnicity pay gap reporting, following a petition which gained more than 130,000 signatures in support of this legislative measure. Payroll teams are familiar with gender pay gap reporting, which will see its original deadlines for publication return to normal in March and April 2022. Ethnicity pay gap reporting could create a more significant statistical challenge in presenting the data. Gender pay gap reporting is completed using the binary male and female comparison. Conversely, the number of ethnic groups that would need to be considered could could easily reach double digits. Before this calculation can become mandatory, government would need to clearly define how the data should be analysed to present a clear and transparent picture. In addition, ethnicity data collection presents a further challenge. There is no mandate to provide employers with ethnicity, therefore, the information may not be available to produce the calculation at all. However, despite the challenges, Parliament recognised that, without mandatory reporting in this area, the gap was unlikely to close.
payroll professionals across the UK. The November 2021 magazine provided an overview on this, and the autumn Budget webcast talks through the key announcements from the day. Find it here: http://ow.ly/Hqnh30s1pLH. To stay up to date with the practical applications for the new tax year, be sure to sign up to BeConnected – our CIPP free-to-attend events for associate and above members. n
How will organisations deal with increases to the NLW and the real living wage?
Pay gap reporting In September 2021, Parliament debated
PP training courses – hich option is right for you? er you prefer to study online, face-to-face, or require an in-house training e for you or your team, the CIPP has a training option that’s right for you. Whether you prefer to study online, face-to-face, or require an in-house training course for you or your team, the CIPP has a training option that’s right for you. CIPP training courses Which option is right for you?
an now choose to study the following courses face-to-face: ayroll update troduction to payroll 11Ds expenses and benefits training course collection. ct our team to find out more and to book your location and date. d you or your team require in-house training sessions, these can vered either face-to-face, or online and can be tailored to suit eeds. Contact our team to find out more and to book your location and date. Should you or your team require in-house training sessions, these can be delivered either face-to-face, or online and can be tailored to suit your needs. You can nowchoose t study the f llowing courses face-to-face: ● payroll update ● introduction to payroll ● P11Ds expenses and benefits training course collection.
Simply contact enquiries@cipp.org.uk for more information and to book your place.
ply contact enquiries@cipp.org.uk for e information and took book your place.
*Price correct at time of print
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| Professional in Payroll, Pensions and Reward |
Issue 76 | December 2021 – January 2022
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