axis payroll User Guide Supplement March 2020

1. What's New?

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With effect from 6 April 2020, the UK government have introduced a new entitlement to Parental Bereavement Leave and Pay. This will provide parents who lose a child or suffer a stillbirth with a right to take two weeks off work.

axis payroll has been updated to allow recording of Parental Bereavement Leave and to process Satutory Parental Bereavement Pay (SPBP).

For further information, see Employer Bulletin February 2020

The Employment Allowance for eligible employers increases to £4,000 per annum for 2020/2021. Due to changes in eligibility checking for this, a fresh claim is required for this with further information regarding your business sector.

If you are eligible to claim Employment Allowance, you will need to ensure that you have flagged you payroll system accordingly and that you submit an Employer Payment Submission in the new tax year. Further information on processing this in axis payroll is provided later in this guide.  

Further details regarding the changes to Employment Allowance are available at https://www.gov.uk/guidance/changes-to-employment-allowance

From April 2016 the government introduced a voluntary framework to allow you to payroll most Benefits in Kind (BiKs).

If you want to payroll your BiKs for the tax year beginning 6 April 2020, you must have registered using the online Payrolling Benefits in Kind (PBIK) service.

One of the biggest benefits of payrolling in line with the framework is that you do not need to submit P11Ds for payrolled BiKs.

axis payroll supports a “Benefit in Kind” pay component which will be included in taxable pay but excluded from amount paid.

axis payroll also allows for the recording of employee car details on the employee record and submitting this information in FPS submissions. From 6th April 2020, changes have been made to payrolling Company Car Benefits. If you are payrolling company car benefits, you will need to update the current car details for each employee to provide the 'Date first registered'. If the vehicle fuel type is Hybrid, you will also need to complete the 'Zero emissions mileage value'.

These changes need to be made before your first payroll run of the new year.

Further information on payrolling on BiK’s is available at https://www.gov.uk/guidance/paying-your-employees-expenses-and-benefits-through-your-payroll

Employers continue to be required to supply all employees with a P60 if they are still in your employment on 5th April 2020. 

The axis payroll March 2020 Legislation Update includes a new stationery option in 'P60 Print' of P60 pdf. This allows P60s to be printed onto plain A4 paper, avoiding the need to order P60 stationery from HMRC. 

Additionally, for axis payroll systems with the People HR interface feature, P60's can be delivered to your employees via their People HR account. These are password protected and an additional password protected copy is stored in the attachments tab of the employee record in axis payroll.

Changes to off-payroll working rules come into effect from 6th April 2020. Details of these can be found at https://www.gov.uk/guidance/april-2020-changes-to-off-payroll-working-for-clients and within the Employer Bulletin (February 2020)

Should you be affected by these changes, please contact our software services support team who will guide you through handling this in axis payroll.

Class 1A NIC liabilities on termination awards and sporting testimonial payments come into effect on 6th April 2020. For termination awards, this introduces a new Class 1A NICs liability on non-contractual "cash" (or cash equivalent) taxable termination awards over a £30,000 threshold, which have not already incurred a Class 1 NICs liability as earnings. These need to be declared via RTI.

axis payroll payment components can be flagged accordingly, allowing this to be processed through your payroll and submitted in your RTI submissions.

A factsheet from HM TReasury is available at https://www.gov.uk/government/publications/national-insurance-termination-awards-and-sporting-testimonials-bill-factsheet

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