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What's the take on the new payslip guidance?

New legislation for Payslip details for April 2019

Currently looking at the new legislation for payslip details :  https://assets.publishing.service.gov.uk/government/uploads/system/uploa...

and the biggest bugbear for us is the day rate hours as per example 6 of the guidance.

In brief, a worker with a day rate is to have their hours worked reported on the payslip rather than just the number of days worked - means the worker needs to indicate the number of horus on their timesheet submission, plus needs recording in the payroll and then used for reporting on payslip.

Apologies if i am being simple here, but for what purpose is this to be forcibly required for payslips?

The legislation has not yet been interpreted by courts or tribunals but the implications of the recording of day rate hours seems quite onerous at first glance.

Anyone else had a chance to check it out? Thoughts?

thanks

Al

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24th Jan 2019 08:40

Onerous? Really?

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24th Jan 2019 08:42

Yeah ... we’re just gonna keep reporting days. That’s what makes sense. A day rate is a day rate.

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to atleastisoundknowledgable...
24th Jan 2019 09:35

atleastisoundknowledgable... wrote:

Yeah ... we’re just gonna keep reporting days. That’s what makes sense. A day rate is a day rate.

I think you're kidding yourself if you think you won't need to say, at some point, how many hours are included in your "day rate".

This is all about NMW.

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to lionofludesch
25th Jan 2019 08:15

You would think it was all about NMW - it would seem pretty pointless if that wasn't the aim. But it can't be. As the gov.uk website says "The hours that must be shown on a payslip are a separate matter from the number of hours worked for National Minimum Wage (NMW) purposes". They may not even be the same.

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24th Jan 2019 08:44

alan.falcondale wrote:

Thoughts?

Another waste of time / over regulation which will no doubt result in decisions against the 'good guys' who try to cope with the amount of petty legislation that business is subject to and will have no effect at all on the 'bad guys'.
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24th Jan 2019 09:23

No doubt part of the crackdown on NMW (See the Iceland savings scheme decision).

Good luck getting the day rate workers to report their hours.

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24th Jan 2019 09:48

No problem at all, as we've long advised clients to do it that way. It saves any arguments with either the employee or HMRC about the actual hours works.

One client didn't take the advice, got stitched up by an employee, and fined for a non-existent breach of NMW rules.

I don't see the difficulty. If a day rate is for 8 hours then it's straightforward.

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to Cloudcounter
24th Jan 2019 09:53

I agree.

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to Cloudcounter
24th Jan 2019 12:59

Cloudcounter wrote:
....

I don't see the difficulty. If a day rate is for 8 hours then it's straightforward.

Reading the example given in the guidance it looks like it may not be just as simple as converting the agreed day hours to the number of days worked - which i figure is what the reason is - i.e. day rate persons will need to declare the number of hours worked each day in order to give evidence for NMW and LW.

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By tom123
24th Jan 2019 10:11

I love how legislation just slips out. If I were not on Aweb, I would have no knowledge of this.

However, all my hourly paid staff have hours on the payslip, salaried staff have level payments etc - so no problem for me.

It is an interesting idea - someone who is paid 'by the day' (which to me is more of a contracting type term) but also on PAYE.

I wonder how often this would happen in companies where the 'worker' and the 'owner' were not the same?

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to tom123
24th Jan 2019 10:33

Ignorance of The Law is no excuse, Tom !!

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By tom123
to lionofludesch
24th Jan 2019 13:06

I agree - and was going to use that phrase. However, there must be millions of small employers out there who wouldn't even think of looking for changes in the law like this. Of all the things one might think were changing, payslip layouts wouldn't be one of them.

Having said that, I am sure the vast majority of trading businesses already give out payslips that their staff can follow. I know mine always come back to me if there is anything unexpected.

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to tom123
24th Jan 2019 15:56

It happens quite a lot even for PAYE workers where we are concerned.

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By NYB
24th Jan 2019 13:31

Why the hell cant we be left to run our business and pay our staff following all the rigid rules and regs without stupid little niggling bits being made mandatory. Surely if the day rate equates to NMW or abovewhen divided by hours then surely the employer should be left alone.

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24th Jan 2019 21:49

I am not sure "onerous" would be the way to describe it - the use of timesheets and the inclusion of that data on a pay slip is really very easy if your payroll application properly manages this - if you provide bureau services to your clients, I would look at this as an opportunity to increase the value to your customer and add a pricing change.

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to rich_keypay
25th Jan 2019 08:23

"onerous" as i now realise was innapropriate term for it.
PITA would probably be better

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