Working within the payroll industry can be extremely busy, making it hard to keep on top of the latest payroll changes and regulations. This blog will explore the latest payroll changes for 2023/2024 to help make it easier for you to understand the latest changes.
A new H&SC levy is going to be introduced in 2023/2024 and will be classed as tax, meaning payslips will need to show deductions such as tax, employee National Insurance, and H&SC Levy as well as other deductions.
The H&SC Levy stands for the Health and Social Care Levy. It will have a temporary 1.25% increase to both the main and additional rates of Class 1, Class 1a, Class 1b and Class 4 National Insurance contributions for the 2022 to 2023 tax year. The revenue raised will go straight to the NHS and equivalent bodies across the UK to offer them support.
Those above state pension age won’t pay the temporary increase in the 2022/2023 tax year but will be liable to pay after April 2023.
Employers, employees and self-employed people liable to pay National Insurance contributions, as well as those who would be liable to pay National Insurance if it wasn’t for State Pension age restrictions are likely to be affected by the H&SC Levy.
Those who only pay Class 2 and 3 National Insurance won’t be affected by this.
The Autumn statement in 2022 announced that the pension triple lock will be honoured, meaning state pension rates will rise.
The Department for Work and Pensions have released a benefits and pension rate document explaining the rates for 2022/2023 and 2023/2024. The document confirms that state pension will be £203.85 for the 2023/2024 tax year.
The document also includes figures for statutory maternity, paternity, adoption, shared parental and parental bereavement pay (this being set at £172.48 per week). Statutory sick pay will also be set at £109.40 per week)
To review the benefits and pension rate document, click here.
New legislation means employers now need to ensure all tips, gratuities and service charges are paid to employees without deductions, while ensuring the distribution of these are fair and transparent.
Currently there’s no legislation preventing employers from deducting national insurance and employer pension liabilities from total tips before paying them to employees through payroll.
The Tips Act will have a huge impact on employers if it becomes law under the current proposals as it will make it illegal for employers to deduct National Insurance and pension liabilities from employees tips.
Outsourcing your payroll with Payescape will allow you to integrate your payroll and HR processes and systems to help you stay compliant. Our CIPP and CIPD certified teams will keep on top of changing rules and regulations so you don’t have to.
To learn more about how Payescape can help you simplify your payroll processes, book a demo today
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