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| Payroll Update - 5 January 2011 |
5th January 2011 |
Statutory Redundancy Payments
The cap for calculating statutory redundancy payments increased from 1 February 2011 to £400 per week.
New Statutory Payment Rates for 2011/12
Statutory Sick Pay: £81.60 per week (SSP)
Statutory maternity, paternity and adoption pay: £128.73 per week (SMP/OSPP/ASPP/SAP)
Unpaid Employees
HM Revenue & Customs stipulates Employees who have not been paid for three consecutive months should be issued with a form P45.
In Year Filing
Employers with 50 or more employees have been required to file their PAYE starters and leaver’s forms online since 6 April 2009. From 6 April 2011 all employers are required to file P45’s and P46’s electronically. For those who use our payroll bureau this system is already in place.
Note: The Personal Allowance reduces where the income is above £100,000, by £1 for every £2 of income above the £100,000 limit, irrespective of age.
National Insurance Contributions
The National Insurance earnings threshold above which NI contributions are paid is now different for employers and employees.
Employers £136 per week and Employees £139 per week.
For those below this level but above £102 per week no contributions due but an NI contribution is recorded as paid for pension purposes.
Employees primary Class 1 rate has increased to 12%
Employees Class 1 rate above upper earnings limit (£42,475 pa) increased to 2%
Employers contribution increased to 13.8%
Mileage Allowance Payments
From 6 April 2011 increased to 45p per mile (up from 40p) for the first 10,000 miles per year travelled by employee on business. The 25p per mile rate for business mileage in excess of 10,000 miles per year remains unchanged.
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