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The Top Five Payroll Software and Other Changes for 2015/16

14th Apr 2015
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The payroll solution that provides all you need for Auto Enrolment.

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Organizations that use payroll software reduce cycle times and manual errors. Some companies choose to outsource the payroll process to a third-party provider that runs payroll software on its own systems. Whether you choose to run your payroll function in-house or outsource your payroll function, running your payroll and staying on top of the latest legislation can seem daunting, but with the help of payroll software, a lot of the heavy lifting of payroll management is done for you.

A range of employment changes are set to come into effect in 2015. Employers need to familiarise themselves with these changes to ensure they are processing payroll correctly. Some of the most significant changes to be aware of include:

1. Family Friendly Changes

(a) Shared Parental Leave & Pay

This is brand new legislation which will apply to parents with babies due to be born/placed for adoption on or after 5th April 2015. Eligible parents will have the flexibility to share statutory leave and statutory pay in the child’s first year. Under the legislation, leave and pay may be taken in discontinuous blocks, and also both parents may take leave and be in receipt of statutory pay at the same time. Whilst using payroll software will ease the burden of processing shared parental leave and pay, there is a rigorous application process that must be completed by employees. To be sure you are ready, employers are well advised to familiarise themselves with the regulations early.

(b) Changes to Statutory Adoption Leave and Pay

From 5 April 2015 there will be no service requirement in order for employees to be eligible to take adoptive leave. Additionally, from 5 April 2015 the Statutory Adoption Pay rates will increase; the first six weeks will be paid at 90% of average weekly earnings. After that SAP will be paid at the lower of either the weekly standard rate or 90% of average weekly earnings. This will mirror the Statutory Maternity Pay rates. Finally, primary adopters will now be entitled to paid time off to attend up to five adoption appointments.

(c) Rise of child’s age limit for parental leave

The current right to take 18 weeks’ unpaid parental leave before a child’s 5th birthday is to be extended from 5 April 2015, so that leave can be taken up to the child’s 18th birthday.

2. Automatic Enrolment

Auto Enrolment will continue to be rolled out to all employers. Every UK employer has a date on which workplace pension’s automatic enrolment applies to them, for instance, a staging date. For most employers that had between 30 and 58 staff on 1st April 2012 their staging date will be during 2015. However staging dates can vary, so employers are well advised to check out their staging date on the Pensions Regulator site.

3. New Fit for Work Service

Due to be rolled out during the year, the Fit for Work Service will offer employers access to free occupational assistance for employees who have been off sick for four weeks or more. Employers will also be able to claim up to £500 tax relief on payments for medical treatment for their employees where the treatment has been recommended under the new scheme.

4. Statutory Pay Rates

The usual shifts in statutory rates of pay are scheduled for 2015. Rates for statutory maternity, paternity, and adoption pay will increase from 5 April 2015, as too will statutory sick pay rates. Any changes to the national minimum wage rates will be effective from 1 October 2015.

5. NIC and Under 21s

The abolition of employer NICs for Under 21s comes in to effect from 6th April 2015. Employers will not be required to pay Class 1 secondary NICs on earnings up to £815 per week, for employees who are under the age of 21. Class 1 secondary NICs will continue to be payable on all earnings in excess of £815 per week. This could result in savings to an employer of up to £90 per week for hiring an employee who is under 21!

BrightPay payroll changes

BrightPay will contain all the necessary features to allow you manage the above changes quickly and smoothly. There’s no need to let legislative changes become a headache, BrightPay has the changes covered.

Key updates will include:

  • Ability to easily log and track shared parental leave & pay, ensuring correct payments are made and records kept. BrightPay will also provide template letters and forms to assist you negotiating the statutory application process with employees.

  • Changes to adoption pay will be automatically applied to BrightPay meaning you never have to worry about incorrect payments.

  • BrightPay provides everything you need to prepare for Auto Enrolment including; assessing individuals, prompting you when action needs to be taken, preparing personalized communication for employees, and postponement.

  • As with other tax relief schemes, any new schemes will be handled by BrightPay.

  • Other functionalities for example; automatic changes to statutory payment rates and NIC calculation rules.

What’s more there are no hidden charges with BrightPay, support is included for all customers. A full free 60 day trial is available at www.brightpay.co.uk

Written by Laura Murphy for BrightPay

 
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