Payroll changes coming up for 2019-20

The new payroll year starts on 6 April 2019. To help keep employers on top of statutory changes that will apply from then, we’ve pulled together a summary of the key things to be aware of.

Changes to detail that must be shown on a payslip

For pay periods starting on or after 6 April, payslips must show the number of hours worked where the hours worked affects the amount of salary or wages.

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The total number of hours worked that result in variable pay must be shown. This can be as a single aggregate figure, or as separate figures if there are different types of work or different rates of pay – the employer can choose which way to show the hours. There is no need to show hours worked where there is no variation in pay – i.e. if a salaried worker who normally works 40 hours a week also does overtime, only the overtime hours need to be shown on the payslip.

Changes to who must receive a payslip

From 6 April 2019, itemised payslips must be provided to the broader category of ‘workers’ not just employees. Guidance on how to check if a person is a ‘worker’ is available on the government website. For example, this will cover casuals and those on zero-hours contracts.

Changes to pension contributions

The minimum pension contribution rates under auto-enrolment increase:

  • up to 5 April they are 2% employer, 5% in total
  • from 6 April they become 3% employer, 8% in total.

Statutory payments increase

Statutory Sick Pay increases to £94.25 per week

Family Pay increases to £148.68 per week.

National Living Wage and National Minimum Wage rates all increase.

Student loan repayment threshold changes

The earnings levels at which the repayment of loans begins will increase to:

Plan 1 – £18,935

Plan 2 – £25,725

Postgraduate loan – £21,000.

Payrolling benefits

Employers who plan to payroll benefits in the 2019-20 tax year must register the benefits that they wish to payroll with the HMRC before 6 April 2019. This can be done online on the HMRC website.