Payroll Legislation Topics

Payroll Legislation Features

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Employment Contracts - links to main page

A written Statement Of Particulars of Employment must be given to each new employee within 2 months of joining your organisation.

Personal Tax Allowances- links to main page

It is important that your payroll complies to current legislation. Here are the latest earning thresholds for this tax year. If your employee has a main job elsewhere where they are paying the maximum national insurance, they can apply for a deferment of paying any additional national Insurance if this second job.

Statutory Sick Pay- links to main page

For employees earning £87.00 per week or more, the rate is £72.55 per week. All employees will be treated the same for SSP purposes whether they are on fixed term or permanent contract.

Statutory Maternity pay - The 1st 6 weeks of payment is 90% of the employees average weekly earnings. Statutory Maternity Pay- links to main page

From April 2007, the 1st 6 weeks of payment is 90% of the employees average weekly earnings. The remaining 33 weeks will be paid at £112.75. Paternity pay is 2 weeks @ £112.75. Up to 10 Keeping In Touch Days known as KIT days are now payable without loss of SMP.

NHS Pension Scheme Payroll- links to main page

There are changes to the NHS Pension scheme effective from 1 April 2008.

Pay thresholds (eg £19,166) will be adjusted in line with annual Agenda for Change pay awards.
In 2008/9 contribution rates will be based on pensionable pay in 2007/8. From April 2009, rates will be calculated on actual pensionable pay each month for staff and every year for GPs and dental practitioners.

National Minimum Wage- links to main page

The UK national minimum wage is aimed at providing employees with decent minimum living standards. It is illegal for an employer to pay less than the minimum wage. There are currently three levels of minimum wage which changes every October.

Stakeholder Pension- links to main page

By law any employer with five or more employees must offer a stakeholder pension scheme, which must be brought to the attention of all employees who must be given the chance to make an informed decision. If you are a GP Practice. then the NHS Pension scheme must be offered unless the employee opts out by completing SD502 form.

Student Loans- links to main page Employees must earn £15,000 per annum or more before student loans can be deducted.

From April 6 2000, legislation came into force requiring employers to deduct student loan repayments from employees who become liable to repay their loan, along with deductions of tax and NIC.

Employees must earn £15,000 per annum or more before student loans can be deducted.

Holiday Pay- links to main page

From October 2007, legislation states that all employees are entitled to 5.6 weeks by April 2009. Phasing in the extra days will be done in two stages:

20 days increased to 24 effective 01 October 2007 (4.8 weeks) .
24 days increased to 28 days from 01 April 2009 (5.6 weeks).

Setting Up A New Business- links to main page

Legislation states that you must register your company with the HM Revenue & Customs for PAYE if you employ any staff or if you are a new Limited Company which have just started trading.

This page was last updated 01/11/2007