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New payslip rules come into force for employers

The new tax year typically brings with it a multitude of changes that businesses should be aware of. This includes those that affect your payroll obligations.

Payroll and pensions legislation is constantly changing, making it difficult to stay abreast of at times.

Changes to payslip rules

From 6 April 2019, employers must itemise payslips for employees’ wages which fluctuate depending on how much time they have worked. 

This might be because they have worked overtime or because the number of hours they work changes in each pay period. Alternatively, the rate of pay may differ depending on the hours that the employee works.

You must detail the exact number of hours that the employee is being paid for, on the payslip. The hours can be shown as a total, or they can be broken down for different types of work and rates of pay.

If a salaried worker receives additional pay for overtime, only information relating to the additional hours and associated pay must be detailed.

The worker’s salaried hours and associated pay need not be detailed.

The new requirements apply whether the payslip is paper or electronic.

What does this mean for employees/employers?

The new rules should enable workers to check more easily that they are being paid the legal minimum wage.

Similarly, it should become easier to identify where employers are not meeting their obligations in respect of the National Minimum Wage (NMW) and the National Living Wage (NLW), as well as to ensure that holiday entitlements are being correctly applied.

The rules also mean that some 300,000 workers will receive payslips for the first time. This includes those working casual or zero-hours contracts, as well as contractors and freelancers who wouldn’t typically be classified as employees.

Employees may bring a claim to the Employment Tribunal if a payslip is not provided. This is also the case if a payslip lacks the necessary information.

If the Tribunal finds the employer has failed to meet their obligations, it must make a declaration to this effect. The declaration may be published on the Tribunal website.

Additionally, where a payslip is not provided, the Tribunal may order repayment of any un-notified wage deductions made in the 13 weeks preceding the presentation of the claim. This applies even if the employer was entitled to make the deductions.

How can GH Payscheme help?

Failing to keep on top of your legal obligations, as an employer, can have serious consequences. Failings can attract significant financial penalties and potentially damage your reputation as well.

You should always be prepared to accommodate legislative changes, and to take action to ensure your payroll is administered accordingly.

If you’re concerned about any of the recent changes to payroll legislation, including those relating to employees payslips, or if you’re looking to lighten the administrative load, contact us today on 01767 315010. Our professional payroll bureau service is dedicated to helping businesses to operate more efficiently and cost-effectively.

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