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We will be processing our weekly payroll as usual on a Tuesday which will fall on 5th April. This relates to payment of wages covering 3rd to 9th April and payday is on the Thursday 7th April.
Does this mean we have a week 53?
I don't think we do but am not exactly sure.
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I wonder if it would be in order to ask if you could possibly clarify a point in Payroll Tips in the November issue, which focused on gifts and annual parties and functions?
The fifth bullet point states an example, if there were a Christmas party, which cost £100 and a summer ball costing £60, only the summer ball costing £60 would be taxable.
Is the summer ball taxable as £60 or as £10 (ie in the excess over the cumulative £150 limit)?
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I understand that the rate of Statutory Sick Pay (SSP) increased to £66.15 per week from 6th April and the lower rate for Statutory Maternity Pay (SMP) increased from £100 per week to £102.80 (or 90% of weekly average earnings if less) from 4th April.
My question is: are the rates increased according to when they are paid or the period they represent? For example, if I paid someone Statutory Sick Pay for sickness in February on the April payroll, would I pay the SSP at the old rate or the new rate? I have been given conflicting advice.
Tracy Summers
Payroll Manager
Pizza Hut
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Dear Experts,
With regard to temporary employees, does holiday entitlement accrue during long periods of SSP and if so how are the average earnings calculated?
Jan Davies
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Dear Experts,
This query arose when putting together a HR policy regarding Term Time Contracts and SSP.
If an employee works term time (pay calculated for working 42 weeks per year including holiday pay and paid over 12 months) will they be entitled to payment of SSP for the time they are not due to work over the school holidays.
E.g. Employee supplies sickness certificates covering 4/8/03-15/8/03, they have QD's of M-F with earnings above the LEL. As they are not paid for these weeks no deductions are due but as they would qualify for SSP should this be paid in addition to their monthly salary?
Another example is where an employee goes sick before the holidays commence (say 14/7/03) and continues to be sick until 19/9/03. I would calculate this to be 9 weeks and 2 days of ssp. But as they were only due to work 3 weeks of this time would they be entitled to the full payment?
Your thoughts regarding this would be appreciated.
Many Thanks
Richard Gathercole
Europ Assistance Holdings Ltd
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Dear Expert,
I have been glancing through your journal and have read your "Payroll Tips" column with interest.
With regard to the fourth point concerning forms P11D, will you please explain under what circumstances a benefit could have been taxed through the payroll but still give rise to a Class 1A NIC liability. Surely the liability to the employers contribution would have arisen at the time that the benefit amount was treated through the payroll and a subsequent Class 1A liability would be a duplication of the charge.
Brian Whitcomb, London City Bond Ltd |
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Dear Experts
We are a hotel chain and we complete form 46 R1 for entertainers who earn over £1000 during the tax year.
Do you know if any new legislation is coming in or just in which will mean the entertainer’s earnings will be subject to Class 1 NICs?
Name and address supplied
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We have a private health scheme whereby we provide private health insurance cover for all employees on completion of two years service. One of our employees has already joined another scheme, which he pays for himself. He has just completed two year’s service and has asked if we could reimburse him his private health scheme fees (which are with another provider) instead of him joining our own scheme. Is there a NIC liability? |
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Dear Expert,
If we are paying an employee a weekly wage with no deductions e.g. tax and National Insurance, do we have to enter them on to the payroll? |
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Dear Experts,
A temporary member of staff is claiming car & travel expenses (40p per mile) but insists that these are not paid subject to tax and National Insurance. (IR124?)
Please advise as to the best course of action.
Fidelma McNicholas, TFPL
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Dear Experts,
Our company pays certain personal expenses on behalf of an employee, which have been invoiced directly to the employee such as telephone bill and motoring expenses for his own car.
Sometimes the company pays the bill direct to the telephone company etc and other times simply reimburses the employee. The total amount paid by the employer is declared on the P11D for tax purposes but what type of NI should be deducted? Class 1 or 1A?
Name supplied |
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Dear Expert,
Can a new father take 5 days paid holiday and claim SPP in the same week?
Name supplied
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Dear Expert,
Given that SMP is now above the NI threshold, are employers still liable for NICs for ex-employees who qualify for SMP, but who were not working for the company at the commencement of maternity leave or those not returning to work?
As a temporary employment agency we currently have 2 ladies in the former category and another who will definitely not be returning to work after her baby is born. The new rules mean that yet again employers are paying for what should be the Government's responsibilities!
Janet Davies, Payroll Controller
Eurosite Human Resources Ltd
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Dear Expert,
Is it true that men can be paid SMP? |
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