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All employers must provide a workplace pension scheme with a minimum 5% employee and 3% employer contributions. The workforce is assessed each pay period with eligible workers automatically enrolled into the company workplace pension scheme:

This is the definition of Eligible worker:

· They are aged between 22 and state pension age

· They earn over the earnings threshold of £10,000 per year (£120 weekly/£833 monthly)

· They mainly work in the UK

Other workers are classed as either non-eligible or entitled workers, these employees must receive a letter providing them the opportunity to join the company scheme if they wish.

Pension Regulator Declaration of Compliance and 3 yearly re-enrolment duties are also legal requirements and we recommend contacting the Pension Regulator if you require further information.

ALL WORKERS are entitled to 5.6 weeks paid holiday a year, this includes:

• Agency workers
• Workers on irregular hours (for example those on zero-hour contracts)
• Part-year workers (for example, those who work term-time only)

It is also worth mentioning that holiday pay must be the employees’ ‘normal wages’ including all pay components they would normally earn, for example, regular overtime or performance-related bonuses must be calculated on a rolling 52-week average and paid on top of their fixed monthly salary.

However, calculating an employee’s yearly entitlement and pay can be very complex, follow current HMRC guidelines or use an HR professional to make sure you are always up to date.

GLX offers payroll packages that include holiday pay calculations for irregular-hour workers and additional holiday pay based on overtime etc. Please contact us directly for further details.

A person’s tax code will usually change in the event of their personal allowance going up or down as decided by HMRC, for example, increase/reduction to taxable benefits, changing or obtaining a second job, or additional income such as receiving state or private pension.

To avoid new employees being placed on an emergency tax code, a P45 must be forwarded to the payroll provider before the first pay is processed. Otherwise, notification will need to be obtained from HMRC regarding year-to-date earnings, tax paid and correct tax code.

You can direct employees to HMRC via the employee helpline or through their personal Government Gateway, should they wish to get further details on their current tax code.

Useful Links: https://www.gov.uk/check-income-tax-current-year

https://www.tax.service.gov.uk/guidance/get-help-understanding-your-tax-code/start/where-do-you-live

https://www.gov.uk/tax-codes/emergency-tax-codes

Employees are eligible for SSP if the following rules apply:

• They’re classed as an employee (including agency workers).
• They’ve completed some work for the employer.
• They’ve earnt at least £123 per week on average.
• They have been ill for at least 4 days in a row (qualifying days)

The employer must be informed based on their Terms of Employment. If nothing is in place then HMRC guidance states within 7 days. SSP could be lost if the employer is not informed in time.

There are situations when no SSP is due and a SSP1 form must be completed by the employee:

• If they are currently receiving statutory Maternity Pay.
• If they have received SSP for the maximum time of 28 weeks or a continuous series of linked periods that lasts more than 3 years.
• If their average earnings are less than £123 per week.

More details can be found at: https://www.gov.uk/statutory-sick-pay.