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Are you up-to-date with the latest payroll changes?

Since the 6th April 2024, UK employers have faced a series of payroll changes that are essential to maintaining compliance and operational efficiency, have you made these changes yet?

These adjustments are due to updates in national insurance, national minim wage, and statutory payment and understanding these changes is important for business owners and payroll professionals…

Changes of the National Minimum Wage

1st April marked a significant increase in both the National Minimum Wage (NMW) and the National Living Wage (NLW). The main change is for employees over 21 years old; the NLW has seen an uplift to £11.44 per hour. These payroll changes demand immediate attention from payroll departments to ensure all employees are compensated according to the new statutory minimums, you can read more on the changes of NMW and MLW here.

Updates to Statutory Pay rates

There have been increases across various forms of statutory pay. For instance:

  • Statutory Sick Pay (SSP) has risen to £116.75 per week compared to the previous £109.40 per week.
  • Rates for maternity, paternity, adoption, shared parental, and bereavement pay have all been updated to £184.03 per week, compared to the previous £172.48.

These changes ensure that employees receive fair compensation during their leave periods, supporting employee welfare while imposing additional considerations for payroll management.

National Insurance Contributions

This new tax year brings a significant reduction in Class 1 employee National Insurance Contributions by four percentage points, now at 8%. While employee contributions see this reduction, employer contributions remain at 13.8%. It’s important for employers to update payroll systems to reflect these changes and manage budgeting for payroll taxes effectively.

Handling holiday pay for irregular hours

The method of calculating holiday pay for employees with irregular hours has undergone a revision. From April 2024, the calculation must consider the average pay over the previous 52 weeks, rather than the former 12-week period.

This change aims to make holiday pay calculations more reflective of actual earnings.

Making sure your business is compliant with BK Plus

The payroll changes for 2024/25 are comprehensive, impacting everything from National Minimum Wage to holiday pay calculations. It’s important for employers to update their systems and processes to remain compliant. These adjustments not only ensure legal compliance but also contribute to the financial well-being of employees.

For tailored payroll solutions that adapt seamlessly to these changes, consider our specialised payroll services. Alternatively, reach out to us for more support to ensure your business is equipped to handle these new challenges effectively.

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