National Minimum Wage (NMW) Rates Increase
One notable change is the National Minimum Wage (NMW) rate increase. From April 2023, the NMW will increase for all age groups. The new hourly rates will be:
- £9.57 for workers aged 23 and over
- £8.20 for workers aged 21 to 22
- £6.72 for workers aged 18 to 20
- £4.98 for workers under 18
- £4.62 for apprentices
Termination Payments Subject to Class 1A Employer NICs
In addition to the changes in NMW rates, there are updates to the termination payment rules. Starting April 6th, 2023, employers will have to pay Class 1A employer National Insurance Contributions (NICs) on any part of a termination payment exceeding £50,000. Non-contractual payments in lieu of notice (PILON) will also be subject to income tax and employee NICs.
Ensuring Minimum Entitlements for Employees
The bulletin also highlights the importance of ensuring employees receive their minimum entitlements, such as holiday pay and sick pay. Employers are reminded to keep accurate records of employee hours worked and to comply with the Working Time Regulations.
Preparing for Changes to IR35
Furthermore, the bulletin advises employers to prepare for the upcoming changes to the off-payroll working rules (IR35). From April 6th, 2023, medium and large-sized businesses will be responsible for determining the employment status of contractors.
Emphasising Cyber Security and Data Protection
Finally, the bulletin emphasises the importance of cyber security and data protection. Employers are encouraged to implement robust security measures to protect sensitive employee data and to guard against cyber attacks.
Overall, the April 2023 issue of the Employer Bulletin provides essential updates and advice for employers operating in the UK. It is vital for employers to remain aware of these changes and to ensure that they are fully compliant with all regulations and legislation. By doing so, businesses can avoid penalties and legal issues and provide a safe and secure working environment for their employees.
UK government, Employer Bulletin, National Minimum Wage (NMW), termination payments, Class 1A employer NICs, non-contractual payments in lieu of notice (PILON), income tax, employee NICs, minimum entitlements, accurate records, Working Time Regulations, IR35, cyber security, data protection, compliance, Star Sterling Outsource.
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