30 Mar Changes in Payroll – April 2022
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.
EA Assist offers an outsourced payroll service tailored to your needs to help you pay your staff accurately and on time, every time. We provide payroll support for a wide range of businesses from 1 or 100 employees and can also help you with work place pension administration.
Give us a call now on 01379 646943 or email info@ea-assist.com.
The new rates from April 2021:
| Age | Hourly rate 2021/22 | Hourly rate 2021/22 |
| 23+ | £9.50 | £8.91 |
| 21 – 22 | £9.18 | £8.36 |
| 18 – 20 | £6.83 | £6.56 |
| 16 – 17 | £4.81 | £4.62 |
| Apprentice Rate | £4.81 | £4.30 |
| Secondary Threshold NI (Director Minimum) | £758.00 | £737.00 |
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: www.livingwage.org.uk/what-real-living-wage
FPS – Don’t forget to make 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.
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%
https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2022-to-2023#class-1-national-insurance-rates
Employment Allowance
The Employment Allowance lets eligible employers reduce their National Insurance liability by up to £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.
In the Spring Statement, it was announced that from April 2022, the allowance will increase to £5,000.
Employers’ Class 1 National Insurance contributions are 13.8 per cent on all earnings above the secondary threshold, which for the 2021/22 tax year is £170 per week, £737 per month or £8,840 per year.
Rates and thresholds for the 2022/23 tax year can be found on the government website, including the Health and Social Care levy increase. For the 2022/23 tax year is £175 per week, £758 per month or £9100 per year.
If you find payroll a drain on your time and resource then please give us a call. We can offer a bespoke service to suit you and your staff at cost effective prices. Give us a call now on 01379 646943 or email us at info@ea-assist.co.uk.