SLIDE 1
Agenda
- Different payrolls
§ Who to pay § What to pay
- What is pay?
- The National Minimum Wage.
An Introduction to UK Payroll (3) Presenter Ian Holloway Agenda - - PowerPoint PPT Presentation
An Introduction to UK Payroll (3) Presenter Ian Holloway Agenda - - PowerPoint PPT Presentation
An Introduction to UK Payroll (3) Presenter Ian Holloway Agenda Different payrolls Who to pay What to pay What is pay? The National Minimum Wage. Different Payrolls Different Employers Many UK sectors Positive
SLIDE 2
SLIDE 3
Different Payrolls
SLIDE 4
- Many UK sectors
- Positive payrolls
§ Requires data entry
- Negative payrolls
§ Recurring payments § Irregular payments / amendments.
Different Employers
SLIDE 5
However…
SLIDE 6
Different Pay
SLIDE 7
Pay………….
- Gross pay
- Taxable pay
- NI’able pay
- Other
§ Student Loans § Pension § Apprenticeship Levy § Court Orders
- Net pay.
SLIDE 8
Gross Pay
- The total pay for the pay period
§ Salary § Overtime § Allowances § Commission § Bonus § Statutory payments (SSP, SMP etc) § Expenses
- A day’s pay.
SLIDE 9
A Day’s Pay
- Salary is usually paid
§ Annual salary / 12, or 52
- A day’s pay could be
§ Annual salary / 365 (calendar days) § Annual salary / 260 (working days) § Annual salary / 261 (working days in a Leap Year) § Or something else!
- A day’s pay is an important calculation.
SLIDE 10
A Day’s Pay
- Employee starts 10 April on £21,000
§ Monthly salary is £1,750 per month
- April’s pay could be calculated
§ £21,000 / 365 * 21 = £1,208.22 § £21,000 / 260 * 15 = £1,211.54 § £21,000 / 261 * 15 = £1,206.90 § Or something else!
- Consistency of operation.
April 2017
Su Mo Tu We Th Fr Sa
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
SLIDE 11
Taxable Pay
- Start with gross pay
- Reduce by
§ Expenses § Pension contributions § Charitable giving in the payroll § Contribution towards a Share Incentive Plan § Any Optional Remuneration Arrangement
- Add on
§ Payrolled benefits.
SLIDE 12
NI’able Pay
- Start with gross pay
- Reduce by
§ Expenses § Contribution towards a Share Incentive Plan § Any Optional Remuneration Arrangement
- Add on
§ Any Class 1 monies paid outside of payroll.
SLIDE 13
Pay for Student Loan Deductions
- As per NI’able pay
- Reduced by
§ Plan 1 threshold or § Plan 2 threshold.
SLIDE 14
Pay for Apprenticeship Levy
- The total pay on which the employer is subject to NICs
- NOT NI’able pay on which NICs are calculated
§ Not reduced by the value of the Secondary Threshold § From £1.
SLIDE 15
Pensionable Pay
- As governed by the contract of employment
§ May be basic pay only
OR
- As governed by Auto-Enrolment legislation
§ Uses different earnings
- Minimum contribution requirement.
SLIDE 16
Net Pay
- Gross pay less
§ Tax § National Insurance § Pension § Student Loan § Any other deduction.
SLIDE 17
Net Pay
SLIDE 18
The National Minimum Wage
SLIDE 19
National Minimum / Living Wage
Pay reference periods starting on or after 01 April 2017:
SLIDE 20
Next….. Income Tax
SLIDE 21