Employers should check that they are compliant with changes to payroll legislation, which came into force on 6 April 2019.
The changes have been introduced to improve transparency around worker’s pay and how it is calculated by employers. HM Revenue & Customs (HMRC) has published guidance to help businesses with the changes.
More than 300,000 workers are affected by the changes, and it is thought to affect employees on zero-hours contracts or employed in ‘casual’ roles.
The Government believe the new rules will help to identify where employers are failing to meet both national minimum wage (NMW) and national living wage (NLW) obligations, as well as contributions to workplace pensions and holiday entitlement.
The new legislation requires employers to provide payslips to all workers, not just employees, and crucially, they must be fully itemised payslips, with a clear breakdown of hours on payslips where pay varies by the amount of time worked.
HMRC guidance outlines that the hours can be shown either as a single total of all hours worked in the pay period, or they can be broken down into separate figures for types of different work or rates of pay. It must be clear which pay period they were worked in.
For help and guidance on new payroll legislation, or any other issues, contact Hethertons employment team today on 01904 528200.