The Chartered Institute of Payroll Professionals
News On Line
Do you need to pay staff for work on a leap year day? Published: 8 February 2024 Emailed: 14 February 2024
As this year is a leap year, the advisory team are getting some queries regarding what to do for employees that work on the leap year day. So, we thought we would try and answer the question and spread some awareness of this potentially troublesome situation.
Whether a worker must be paid for a leap year day largely comes down to the relevant document (usually a contract or employee handbook), so the answer is a rather deflating “it depends”.
If employees are paid an annual salary or other mechanism which does not relate to specific days or hours (e.g. a monthly fee), then it is probable that the leap year day would not affect any calculation of gross pay for this period. This does not stop you from paying an additional payment, but it may not be required. If by contrast, employees are paid for specific days or hours worked (for example, based on a shift rota) and paid an hourly or daily rate, then it is likely that the organisation would be contractually bound to pay employees for working on this day.
Irrespective of any contractual terms, your organisation would need to ensure that employees are paid at least the relevant NMW/NLW rate of pay across all reference periods, encompassing the hours worked on the leap year day.
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Lifetime Allowance: Frequently asked questions Published: 8 February 2024 Emailed: 14 February 2024
The Pension schemes newsletter has been updated to add additional information for a FAQ on lifetime allowance (LTA).
HM Revenue and Customs’ (HMRC’s) update notes state that:
“Question 8 within the lifetime allowance (LTA) frequently asked questions has been updated to correct a factual error and reflect that we will not be legislating to amend (and limit) which pension schemes individuals can apply to for a transitional tax-free amount certificate. We expect applications to be made to the scheme from which the first lump sum is paid after 6 April 2024, but it will remain the case that they can apply to any scheme of which they are a member.”
If you have any questions or concerns about the changes to LTA and the changes coming in April 2024, this newsletter is a good place to start.
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Retirement Living Standards updated Published: 13 February 2024 Emailed: 14 February 2024
The Pension and Lifetime Savings Association (PLSA) has released the updated Retirement Living Standards (RLS) which detail the income needed for different levels of lifestyles in retirement.
Standard Minimum Moderate
Single income per year
As a couple per year
£14,400 £31,300 £43,100
£22,400 £43,100 £59,000
Comfortable
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