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13th March 2019

Employment Law Changes Impacting Payroll

Each year regulations change that can often affect payroll. In 2019 there are several changes labour changes that could impact your employees. If you are managing payroll, here are some upcoming changes to consider:

Settled Status for EU Nationals
If you have employees originally from the EU that have been living in the UK for more than 5 years, they will be able to apply for settled status in 2019. They will be able to live in the UK indefinitely after the 2021 Brexit transition. If any employees have been living in the UK for less than 5 years, they can apply for temporary status until they meet the requirements for settled status. Make sure to talk to your employees about this new requirement so they can make the necessary arrangements for settled or temporary status.

Gender Pay Gap Reporting
In 2018, organisations with 250 employees or more were required to provide gender pay gap reporting. In 2019, the gender pay gap reporting is due on 4 April, and the new reports are expected to be highly analysed to determine how much progress or change has been made since last year in cases where there was a large disparity based on gender. This reporting will continue each year, so companies must address issues in gender pay gaps and how to rectify the situation. Payroll teams must stay informed of changes due to this reporting.

Auto Enrolment
The auto enrolment minimum contribution for employers and employees is increasing again this year beginning 6 April. Employers must now contribute 3% to employee pensions, and employees must now contribute 5%. The new contribution amounts for 2019 should be communicated to your employees and confirmed before making changes to stay compliant. Payroll teams should be working with employees to ensure they are ready for the changes.

There are so many compliance and regulatory changes taking place each year it can be difficult to keep up. If you need help with payroll or compliance changes, please contact us – we can assist your team and ensure compliance with new regulations. Click here for more information

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