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Employers costs are going up

Employers costs are going up

Infographic showing National Minimum Wage increases and Pension increases from April 2019 (text below)

Employers costs are going up!

Minimum wage increase from 1 April 2019. Main rate up from £7.83 / hour to £8.21 / hour. Go to gov.uk/national-minimum-wage-rates for all the new rates.

Workplace pensions increase on 6 April 2019. Minimum total pension contribution: Up from 5% to 8% tax relief increase from 0.6% to 1%. Minimum employer contribution: Up from 2% to 3%. Employee contributions could go: Up from 2.4% to 4%.

What do I need to do?

If we provide your payroll services, and you’re sticking with the minimum pension contributions, nothing.  Let us know if any of your employees need a pay increase.

If run your own payroll, you’ll need to go to Xero > Settings > Payroll Settings > Workplace Pension and update the contributions, and go to Xero > Payroll > [Employee Name] > Employment > Set New Salary & Wages. Remember to include the extra cost in your cash flow plans.

Author: Linda

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