New Payroll Legislation Coming In This April
Employers and HR departments should prepare for a few changes to payroll processes in the coming weeks and months. New legislation surrounding the provision and format of payslips will come into force in April 2019, requiring employers to provide payslips to every worker. These documents must state the number of hours a given employee has worked if their pay varies according to the amount of time spent working.
How Can I Get Up To Date On All The Changes?
Fortunately for employers, HMRC has published some handy new guidance to help prepare for the upcoming changes.
What Are The Main Legislative Changes I Need To Know About?
The most significant change to legislation is that employers must provide an itemised payslip to every worker they take on.
On top of this, employers will be required to show the number of extra hours worked, if applicable. In this way, if a worker with a fixed salary works a number of hours of overtime for additional pay, only the number of overtime hours worked will need to be stated.
HMRC’s guidance states that the number of hours worked can be displayed as a simple total number of hours worked in a given pay period or can be divided into separate figures according to different pay rates or different types of work. Either way, it should be clearly stated which pay period the worker is being paid for.
When Do I Need To Take Action?
Employers only need to start showing hours worked on payslips for pay periods that begin after or on 6 April 2019.
What If Workers Are Already Paid By The Hour?
The hours that need to be shown on a payslip according to new legislation are a different matter to the number of hours worked by those on National Minimum Wage. However, it may well be the case that those paid by the hour receive similar payslips to those that are salaried.
How Should A Payslip Be Presented?
Employers may present a payslip either in a physical format or in an electronic message that the employee can print if they wish.
What Else Does The Guidance State?
The HMRC guidance also includes some useful information on what to do in cases of unpaid leave or statutory sick pay, as well as how the new stipulations will be enforced.