Nov 2020
18
The Living Wage Week took place from 9th to 15th November 2020 and as part of this week the new living wage rates details were announced. The new rates apply to employees aged 18 years of age and older from 9th November 2020, but employers who are already part of this scheme will have six months to apply the new pay rises.
The new London Real Living Wage announced by the Living Wage Foundation, has increased by 10p from £10.75 to £10.85 per hour. This helps reflect the higher cost of living facing families in the city. The UK Living Wage rate has increased by 20p from £9.30 to £9.50, an increase of 2.1%. The Government's current national minimum wage for over 25s is £8.72, which is £78p less than this rate.
It is estimated that over 250,000 employees will be affected by the new real living wage increase. An employee working 37.5 hours per week being paid the new Living Wage rate of £9.50 will earn more than £1,500 more annually compared to an employee on the current national minimum wage for over 25s. And an employee working the same hours per week in London being paid the new Living Wage rate of £10.85 will earn more than £4,000 per year compared to an employee on the national minimum wage for over 25s.
The total number of accredited Living Wage organisations is nearly at 7,000. Over 800 employers have been accredited by the Living Wage Foundation since the start of the Coronavirus pandemic. New companies that have signed up include Capital One, Tate & Lyle and All England Lawn Tennis Club.
An upgrade to BrightPay payroll software has now been released catering for the new Living Wage rates. For information about the Living Wage Foundation visit the Living Wage Foundation website here.
Nov 2020
12
We are delighted to reveal that we have been shortlisted for both ICB LUCA Payroll Software of the Year 2020 and ICB LUCA Friendliest Software of the Year 2020. Having won the LUCA Award for Payroll Software of the Year last year, 2019, we are hoping to make it two years running.
The LUCA Awards are the ‘Oscars’ of the bookkeeping profession and are presented in recognition of the year’s outstanding bookkeepers and the many organisations and vendors that complement the valuable work that they do. It will be down to ICB students and members to vote and determine which payroll software provider is the best and friendliest.
Our recent BrightPay customer survey suggests some of the reasons why we have been shortlisted:
The winners will be announced as part of the 11th Annual Bookkeeping Summit, being held virtually at the awards evening on 17th November. Best of luck to all the finalists!
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Nov 2020
3
The Coronavirus Job Retention Scheme (CJRS) was due to come to an end on 31st October 2020. However, with further COVID-19 restrictions announced, the CJRS has been extended for another month until 30th November 2020. This also means that the introduction of the Job Support Scheme, which was due to start on 1st November 2020, has been postponed until December.
In the ‘new normal’, employers and employees expect to access their payroll information in the cloud. Self-service online portals are changing the way businesses interact and communicate with their employees, whilst providing the cloud functionality to get things done smarter and faster. BrightPay Connect enables clients to submit employee hours, approve the payroll run, manage their employees’ leave, run payroll reports and much more.
In this guide, we look at how you can overcome payroll processing inefficiency in a crisis. Discover top tips to ensure COVID-19 does not slow down your bureau’s payroll processing and how you can respond quickly and effectively to avoid disruption in the future.
Join our payroll and HR experts in our upcoming webinar as they talk through a range of topics, including the extended CJRS, the Job Support Scheme, HMRC updates, redundancy, API integration with accounting software and safeguarding your payroll against COVID-19. Guest speakers include AccountsIQ & GoProposal. Limited places available.
As businesses look at creative ways to save jobs, many are moving to reduce their business overheads. Savvy businesses have already saved thousands by opting for a payroll provider that does not have an additional charge for auto enrolment, CIS or customer support. BrightPay is one of the most competitively priced payroll software on the market with no contract ties. Making simple changes and investing in payroll solutions with integrated cloud access can save money, improve productivity and increase profits.
Nov 2020
2
Businesses are continuing to be massively impacted by COVID-19, and for many, their payroll solution may not be up to the challenge. At BrightPay, we believe that our COVID-19 response plan means that we are the perfect payroll partner to help you adapt to an ever-changing world.
Making simple changes and investing in payroll solutions with integrated cloud access can save money, improve productivity and increase profits. It is important to choose the right payroll software provider that will ensure COVID-19 does not slow down your bureau’s payroll processing.
Research different payroll software providers and compare them against what you are currently using. Choose the right payroll technology that not only streamlines your payroll processes but supports your business continuity needs.
Ask other providers what their customer satisfaction rating is, what are the hidden costs and how they are helping their customers through COVID-19.
''Complex CJRS claims, 4 weekly pay periods crossing into July, the beginning of flexible furloughing. We could be in the middle of a logistical nightmare, but thanks to @BrightPayUK our lives have been made considerably easier.’’ Lucy Stupples @autumn_ cottage – Twitter
‘‘BrightPay have made it easy for us during this difficult time. They have kept us up to date on their information hub on all matter COVID-19 related, with free webinars on CJRS matters and other resources.’’ Linda Nicholls – Trustpilot
''We have worked around the clock since COVID disrupted life as we know it to support our clients. However, it would have been a lot harder to provide that support if we didn’t use BrightPay. Well done team @ BrightPayUK.” Investment Bookkeeping @InBookkeeping – Twitter
Download the guide now: ‘Safeguard your payroll against COVID-19 and the (hidden) cons of the Job Support Scheme’
Related articles:
BrightPay Covid-19 Resources Hub
Webinar: CJRS Changes & Flexible Furlough - What you need to know
Blog: The Results of our Customer Survey are in, and we want to say Thank You!
Nov 2020
2
Originally introduced in March, the Coronavirus Job Retention Scheme & Furlough Leave has been extended beyond the original October deadline.
The Furlough scheme had been winding down over the last couple of months, with 70% government contribution to hours not worked in September and the employer paying 10%. In October the government paid 60% of the furloughed employees wages for their unworked hours, up to a maximum of £1,875, with employers contributing the remaining 20%.
The announcement made on 31st October in line with the second lockdown means that businesses can receive grants covering 80% of wages throughout November and the JSS implementation has been delayed to 1st December. The employer must pay for all the employer’s NIC and employer’s minimum workplace pension contributions on those wages and the grant will be for time not worked, up to £2,500 per month.
The Coronavirus Job Retention Scheme allows all UK employers to access financial support to continue paying part of their employees' salary that would otherwise have been laid off due to the second lockdown. It prevents against layoffs and redundancies.
All UK companies are eligible: limited companies, sole traders who employee people, LLPs, partnerships and charities.
Employees who were on the employer’s payroll on 30 October 2020 will qualify to be included in CJRS claim for November; they don’t have to have been included in an earlier CJRS claim. The employee must have been paid by the employer, and that pay must have been reported on a RTI return before midnight on 30 October.
Furlough leave is available to all employees on a contract, including;
• full-time employees
• part-time employees
• employees on agency contracts
• employees on flexible or zero-hour contracts
Flexible furlough will still run alongside full-time furlough, so staff may be brought back part-time to say, prepare the premises for the lifting of national restrictions, or to prepare for Christmas.
The same rules for flexible furlough will continue to apply as they have done since 1 July, so the employee may be furloughed for a couple of days or hours per week. No minimum time set for furloughed hours or working hours has been communicated.
However, each furlough claim must be for a period of at least seven consecutive calendar days.
• The employer must designate affected employees as furloughed workers.
• They should notify the employee that they have been marked as Furlough. Agreement from the employee may be required.
• HMRC must be notified of the employee designated as furloughed workers as well as details of their earnings. This is done through an online portal (not currently set up).
• HMRC will reimburse 80% of furloughed workers wage costs, based on the February earnings of salaried workers, up to a cap of £2,500 per month.
• Wages for those on variable hours, can be calculated based on the higher of either:
o the same month's earning from the previous year
o average monthly earnings from the 2019-20 tax year
If the employee has been employed for less than a year, employers can claim for an average of their monthly earnings since they started work.
• Employees remain employed, their continuity of service is not impacted.
• Employer may choose to top-up the other 20% of salary. If they don’t top-up the 20% it will be a deduction in wages.
• Wages paid through the scheme are subject to the usual income tax and other deductions.
Changing the status of employees to a furloughed worker remains subject to existing employment law. Generally, where an employee’s contract contains a layoff or short term clause employers should be able to place employees on furlough leave. Where there is no such clause, it is best advised to get agreement from the employee.
Additionally, a 20% reduction in salary will be a change in terms and conditions of employment. Where employers are not topping up the government payment, they should also seek agreement from the employee.
Given the current situation and the alternatives for those employees should they not agree, one can expect that most employees will agree. That said, prudent employers will seek to get their employees agreement as part of their furlough leave process.
A BrightPay UK (Windows) upgrade has just been released to cater for the extension to the Coronavirus Job Retention Scheme. This upgrade also removes previously released Job Support Scheme (JSS) functionality.
During COVID-19, BrightPay have been running regular webinars to keep businesses and accountants up-to-date with the latest changes and the impact on payroll processing don’t miss the latest webinar.
Free Webinar: New Job Support Scheme Explained and how to safeguard your payroll against COVID-19
18th November – 10.30am
In this webinar, we look at what you need to know about the re-instated Furlough scheme and new Job Support Scheme, including which employees are eligible, the level of government funding, and how the scheme is actioned through payroll. We will also share top tips to ensure COVID-19 does not slow down payroll processing. Plus, we will explore the rise in redundancies and the new changes regarding statutory redundancy and notice pay for furloughed employees.
What you'll learn:
• What the extended CJRS means for your business
• Everything you need to know about the Job Support Scheme
• Tips for safeguarding your payroll
• How BrightPay’s Job Support Scheme Calculator & Claim Report works
• How to calculate notice pay and redundancy pay for furloughed employees
• Top tips to ensure COVID-19 does not slow down payroll processing
Related articles:
BrightPay Covid-19 Resource Hub
On-demand webinar: Redundancies & Furloughed Employees
Guide: Safeguard your payroll against COVID-19 and the (hidden) cons of the Job Support Scheme