End of Year 2020/21 and P60 End of Year Certificate
The final submission for the tax year is due this month. Please ensure all payments made to employees have been recorded through the payroll. If this is not the case please let us know straight away as we may need to submit an amended submission for the year.
If you have not yet received the P60 End of Year Certificates for your staff, we will be sending these to you shortly. These need to be given to your employees by the deadline of 31st May 2021.
Working Patterns and Weekly Hours
It is important that we know the working patterns and weekly hours for your employees. We need these details when calculating statutory payments, such as Statutory Sick Pay, in order to calculate the correct weekly amount due.
This also aids us when calculating the hourly rate for your employees and ensuring that you meet the National Minimum Wage requirements.
Increase in the National Minimum Wage and National Living Wage
The National Minimum Wage and National Living Wage is a legal right which covers almost all workers above compulsory school leaving age.
With effect from 1 April 2021 the rates will increase, so it is important to review your employees’ rates of pay to ensure that they are not being underpaid.
From April 2021 the National Living Wage will apply for those aged 23 and over (previously 25 and over). There are different minimum wage rates for different groups of workers, as follows:
|Aged 23 and above (National Living Wage rate)||£8.91|
|Aged 21 to 22 inclusive||£8.36|
|Aged 18 to 20 inclusive||£6.56|
|Aged under 18||£4.62|
|Apprentice aged under 19||£4.30|
|Apprentices aged 19 and over, but in the first year of their apprenticeship||£4.30|
Please remember when taking on a new member of staff that we require the following information to enable us to add them onto the payroll:
- Full name
- Date of birth
- Any apprenticeship details
- Rate of pay
- Standard hours
- Start date
- National Insurance number
If Together We Count process payments to your staff via BACS, we will also require the employee’s bank details.
If you use our ePayslip service then we will also require the employee’s email address.
As more of us than ever are working from home, you may wish to take advantage of our ePaylips service. ePayslips is a self-service payslip facility that enables employees to access their payslips and P60’s directly from a secure web site: https://www.myepaywindow.com
If you would like further information please do not hesitate to contact a member of the payroll team at firstname.lastname@example.org
Rates and allowances for 2021/22 Tax Year
Please note the following increases to rates and allowances which apply from 6 April 2021 to 5 April 2022:
- Emergency Tax Code: 1257L (Can earn £12,570 per annum before paying tax)
- Tax becomes payable once earnings exceed £241 per week / £1,048 per month
NATIONAL INSURANCE (NI)
- Employers National Insurance is payable on earnings over £170 per week / £737 per month
- Employees National Insurance is payable on earnings over £184 per week / £797 per month
STUDENT LOAN RECOVERY
|Employee earnings threshold Plan 1||£19,895 per year – deduction 9%|
Employee earnings threshold Plan 2
£27,295 per year – deduction 9%
Employee earnings threshold Plan 4
£25,000 per year – deduction 9%
|Postgraduate loan||£21,000 per year – deduction 6%|
STATUTORY SICK PAY
- Weekly rate: £96.35
- Payable for a maximum of 28 weeks
- Earnings must exceed £120 per week to qualify
STATUTORY MATERNITY PAY (SMP)
- 6 weeks at 90% of average weekly earnings
- 33 weeks at £151.97 or 90% of average weekly earnings, whichever is lower
- Additional Maternity Leave: 13 weeks unpaid (52 weeks leave in total)
- Must have been continuously employed for at least 41 weeks
- Employee can work up to 10 ‘keep in touch days’ without losing SMP
- Will accrue holiday pay for the entire 52 weeks of leave taken
- If pregnancy related illness continues or starts within 4 weeks before the week the baby is due then Maternity Leave and Pay begins automatically
- Maternity Leave can begin any time from 11 weeks before the expected week of birth up until the birth itself
STATUTORY PATERNITY PAY (SPP)
- 2 weeks at £151.97 per week or 90% of average weekly earnings, whichever is lower
FUNDING OF SMP/SPP
- If you are classed as a small employer, you will be entitled to recover all of the SMP/SPP you have paid, plus 3% compensation
- A larger employer, who has total National Insurance Contributions in excess of £45,000 for the year, can recover 92% of the SMP/SPP paid
If you wish to discuss any of the content in this blog please do not hesitate to get in touch.
0114 400 0119