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Payroll Facts

National Minimum Wage (NMW) & National Living Wage (NLW) Increase

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 The NMW & NLW increased from 1 April 2018. The new rates are as follows:

     

Aged 25 and above (NLW) - £7.83

 

 Aged 21 to 24 inclusive (NMW) - £7.38

 

 Aged 18 to 20 inclusive (NMW) - £5.90

 

 Aged under 18 (NMW) -  £4.20

 

 Apprentices (NMW) - £3.70

Statutory Sick Pay (SSP)

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Individual’s may be entitled to Statutory Sick Pay (SSP), which begins on the fourth day of a sickness period and is payable for up to 28 weeks. The current SSP rate is £92.05 a week. If an employee is absent from work due to sickness and complies with the Company's rules relating to notification of absence, self-certification and providing medical certificates, they will be paid SSP. The qualifying days for SSP purposes are the usual contracted working days. 

   

Statutory Maternity Pay (SMP)

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SMP is payable for up to 39 weeks during maternity leave. SMP will be payable via the payroll system.  For the first 6 weeks, SMP will be paid at the higher rate, which is equivalent to 90% of the employee’s average weekly earnings calculated over the period of 8 weeks up to and including the qualifying week. The standard rate of SMP is £145.18 and is paid for the remaining 33 weeks but will stop if the employee returns to work sooner.     

Statutory Adoption Pay (SAP)

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 SAP is payable for up to 39 weeks during adoption leave. SAP will be payable via the payroll system. For the first six weeks, SAP will be paid at the higher rate, which is equivalent to 90% of the employee’s average weekly earnings calculated over the period of eight weeks up to and including the qualifying week. The standard rate of SAP is £145.18 and is paid for the remaining 33 weeks but will stop if the employee returns to work sooner.

Tax Bands & Rates

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Standard tax code is 1185L. This means £11,850 annual earnings allowance. This is tax free.


0-£34,500 - Taxed at 20%

£34,501 – £100,000 - Taxed at 40%

£100,000 – £150,000 - Taxed at 40% reducing personal allowances

Over £150,000 - Taxed at 45% no allowances

General Data Protection Regulation (GDPR)

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An employees payroll and tax information should be kept on file for at least 6 years post employment.