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Bonus Schemes
Bonus schemes are designed to motivate employees by rewarding them for achieving particular targets or standards previously agreed with the employer.
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Company Cars
The company car has long been established as an important part of the remuneration package for certain employees, whether it is an essential requirement for them to carry out their duties or not.
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Conducting Pay Reviews
Pay reviews differ in every organisation – the structure of pay, the history of pay packages, the pay package itself, the structure of the organisation, the impact of the market place – all come into play at pay review time.
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Definition of Wages
The definition of wages according to the Wages Act 1986 is any sums payable to the employee by an employer in connection with that employment.
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Employed or Self Employed?
Employed or Self Empoyed, employers seems to get caught out when trying to determine if an employee is employed or self employed.
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Employee Benefits
Employee benefits are offered for a variety of reasons but usually to attract, retain and motivate employees. They may also provide a more tax efficient mechanism for enhancing the total remuneration package.
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Employee Share Ownership Schemes
Research in both the UK and USA suggests that offering employees shares can lead to significant improvements in motivation, performance and profit. Furthermore the prospect of being a shareholder can attract staff to the company, and share options maturing several years in the future can act as a strong retention incentive.
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Employer-Supported Childcare
Employers may choose to offer childcare support to staff as a benefit to improve retention and staff satisfaction, and to place themselves as an employer of choice in the market.
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Equal Pay Review
One of the key factors affecting motivation and teamwork in the office is pay. Providing equal pay for equal work is central to this concept and results in a fair reward system.
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External Salary And Benefits Review
In order for a company to develop competitive pay and benefits levels and a logical internal salary structure, it is useful to know and understand what is happening in other organisations that may be competing to recruit the same staff.
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Flexible Benefits
In a tight employment market it can be very difficult to recruit and retain key employees. Many organisations are now looking at ways in which they can make their reward packages more attractive, and have adopted a 'flexible' approach to staff benefits.
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Holidays
The Working Time Regulations 1998 established the basis for paid annual leave and the amount of entitlement was increased by the Working Time (Amendment) Regulations 2007 which came into effect on 1st October 2007.These Regulations increased the holiday entitlement, originally to to 4.8 weeks, with effect from that date and have since increased them to 5.6 weeks. Read on for more information.
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HR Update 224 - Flexible Benefits – What is the benefit to the company?
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IR35
The tax and National Insurance changes brought about by 'IR35' can be more than a little confusing, particularly for those of us that are not tax experts.
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Job Evaluation and Equal Pay
Every organisation operates a job evaluation process - whether formal or not. The decision taken over the pay of an individual is a combination of the 'worth' or 'size' of the job they do and the particular contribution they personally bring to the organisation.
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Loans to Employees
Some organisations offer a variety of loan facilities to employees as a benefit. The employee may be taxed on the difference between interest at the appropriate 'official' rate and the interest, if any, paid.
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National Insurance Contributions (nics)
NICs are due from both employer and employee. They are, in essence, a form of tax on earnings designed to fund social security benefits and were established under the Social Security Act 1975 (as amended).
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National Minimum Wage
The National Minimum Wage became effective from the 1st April 1999.
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Outsourcing Payroll
Outsourcing the payroll function can deliver both small and large organisations measurable cost savings and improved business processes.
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Registering Employees For Paye
When a business employs its first employee, you will need to contact your local Inland Revenue office and ask for a 'PAYE system'. They will assign you a Tax Reference Number.
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Statutory Maternity Pay
Statutory Maternity Pay (SMP) is payable to eligible employees who take maternity leave or leave employment because of pregnancy or childbirth.
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Statutory Paternity Pay
Fathers and couples who jointly adopt a new child are entitled to paid time off. This article sets out the criteria and obligations that need to be understood and followed.
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Statutory Sick Pay (SSP)
SSP is the minimum level of sick pay employers must pay to qualifying employees when they are sick and unable to attend work. All employers regardless of their size have a statutory duty to pay this minimum level of sick pay.
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Summary Of Terminology Relating To Pay And Tax
The following offers descriptions of tax and pay related terminology and forms.
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Taxation Of Employee Benefits
The Income and Corporation Taxes Act, 1988 contains particular provisions to impose liability to income tax in respect of expenses payments and fringe benefits given to company directors and any employees whose total remuneration, (including all expenses payments, benefits in kind, accommodation benefits and vouchers or credit tokens), amounts to £8500 or more per annum.
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Termination Payments
Employees may be entitled to receive payments when they leave their employment, or organisations may wish to make a payment as a way of thanking the employee for their service.
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Typical Employee Benefits
There are a variety of benefits offered by employers; here we have highlighted the most commonly found. However, each benefit will be viewed by the Inland Revenue on a separate basis as to the nature of any tax and NIC liability.
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Wages - Payments & Deductions
Since the passing of the Wages Act 1986, employees can no longer insist on payment in cash. The method therefore is a matter of agreement between the employee and employer.
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