PAYE update

The hour is nigh…. and essential

Payslip Law under the Payment of Wages Act 1991 requires that a payslip is provided to all employees each time they are paid.  There are very few exceptions to this legal requirement and employees must be given details of their earnings before and after any deductions including the amount and description of the deductions taken.

The employer can choose to provide the payslip in a paper printed version or in an electronic format.  However it is produced, the payslip must be provided on or before the employee’s payday.

With so many big legislative shake ups surrounding pay, such as the National Minimum Wage and National Living Wage, pay has been getting closer scrutiny from the Government.

It has been revealed that some employers are either inadvertently or deliberately breaking UK employment law and denying employees the right to minimum pay.   Employers in some circumstances have not been including all worked time that should be paid; not paying the correct holiday pay entitlement; making illegal deductions; or not taking account of deductions for the benefit of the employer which would reduce the employees pay below the legal requirement.

 

Earlier this year, The Employment Rights Act 1996 (Itemised Pay Statement) (Amendment) Order 2018 was passed and stated that, from April 2019, where an employee’s pay varies by reference to time worked, employers must include the number of hours for which the employee is being paid on his or her itemised pay statement.

The change is designed to make it easier for hourly paid staff to ensure that they are paid correctly and to address underpayments.

Prior to April 2019, employers must review their business and payroll processes and ensure they are going to meet the requirements of this new law.  We will be working with all our clients to make sure all essential information is included on employee payslips.

Please click here to go back to other Taxing Times stories…

<Apr 2019>
MTWTFSS
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

Apr 24

No events today
The partners and I wanted to thank you again for your work this year on our behalf. We have found, since changing to your firm some time ago, that our lives have been made so much easier! We are very impressed and grateful for your attention to detail, your understanding of our practice and general practice in the whole, the sheer speed and helpfulness of your responses to our requests, questions and need for help. It really does make a difference to have a firm of accountants that understand general practice and the problems that we face, especially recently. We find the meetings with yourselves pleasant, easy to understand and easy to see where we can make improvements. I wish all GPs had accountants like yourselves! I am always happy to recommend to you friends and colleagues and would be more than happy for you to share this personal and practice recommendation with others.   Dr Andrew Dearden Roathwell Surgery (Senior Partner) and Treasurer of the British Medical Association (BMA)
-- Dr Andrew Dearden