Payroll Changes coming in April 2022

Payroll Update for April 2022

Are you prepared for the Payroll changes coming in April 2022? 

Minimum Wage Increase - April 2022

The National Minimum wage will increase in April 2022 and now includes 23 and 24 year olds at the highest rate. Employers should start paying the new rates on the first pay reference period on or after 1 April 2022.

The new rates from April 2021:

You must be school leaving age, see the government guide lines on school leaving age, to get the National Minimum wage and aged 23 or over to get the National Living Wage. The government website will help you work out minimum wages for different types of work if your employees are not paid by the hour.

There is also the Real Living Wage, and Living London wage, find out more here: https://www.livingwage.org.uk/what-real-living-wage

FPS - Don’t forget to make sure your last RTI submission to HMRC is marked as the final one of the year so you can raise P60’s for employees where necessary.

Haines Watts offers payroll solutions tailored to your needs to ensure you pay your staff accurately and on time, every time. We can provide payroll support for 1 or 100 employees and help with workplace pension administration.

Give us a call now on 01379 640555 or email diss@hwca.com or visit our webpage here: https://www.hwca.com/accountants-diss/outsourced-payroll/.

National Insurance

A new ‘Health and Social Care Levy’ to fund investment in the NHS and social care is to be introduced by the Government from April 2022.

From April 2022, National Insurance contributions for working age employees, self-employed people and employers will increase by 1.25% and will be added to the existing NHS allocation.

The NIC rate for most employees was 12% in 2021-22, and this will rise to 13.25% in 2022-23.

The rate at which employers pay NIC will also rise from 13.8% in 2021-22 to 15.05% in 2022-23.

For NI contributions over £50,270, this will increase to 3.25%

You can find the full details here. 

Employment Allowance

In the Spring Statement, it was announced that from April 2022, the Employment allowance limit will increase to £5,000.

The Employment Allowance lets eligible employers reduce their National Insurance liability by up to £5,000 for the 2022/23 tax year (it was £4,000 for the 2021/22 tax year) It’s designed to support smaller employers with their employment costs and is deducted from the PAYE employers Class 1 National Insurance until the allowance is used up.

Employers’ Class 1 National Insurance contributions will be 15.05% per cent on all earnings above the secondary threshold, which for the 2022/23 tax year is £175 per week, £758 per month or £9,100 per year.

Haines Watts Payroll

If you are struggling to keep up with the changes to PAYE, Employment Allowance and the National Insurance contributions please get in touch.

Payroll can be time consuming and mean taking time out from other business tasks. Let us help with your payroll function. We can offer a competitive, experienced and simple service whether you have 1 or 100 employees.

Using the latest software we offer an efficient and secure service, leaving you to focus on your business. Get in touch with us to find out how we can help, you can read more about our payroll service here: https://www.hwca.com/accountants-diss/outsourced-payroll/