Businesses across Worcestershire have been warned they need to urgently update their payroll systems and software ahead of November’s changes to National Insurance following the recent mini-budget announcement.
This alert has come from IT and payroll specialist Susan Marlow who says she fears many businesses across the county will run out of time to make the legislative changes to their payroll systems ahead of the repeal of the Health and Social Levy Act of 2021.
Ms Marlow, managing director at Kidderminster-based IT and software provider Minster Micro says employers face “another payroll challenge” due to the short timeframe they have to implement the updates, unless they plan and action the changes quickly.
The changes, which come into force on 6 November, were announced during the mini-budget as part of the Government’s plan to stimulate the UK’s economy.
Under the new rules, there will be a reduction in the main and additional rates of Class 1 (employer and employee NICs), Class 1A, Class 1B and Class 4 (self-employed) NICs. In summary, these changes remove the temporary 1.25% increase originally legislated within the Chancellor’s Spring Statement of the Health and Social Care Levy Act 2021. The changes will come into effect from 6th November 2022 and for the remainder of the 2022-23 tax year.
Ms Marlow said: “The Government’s mini-budget has had a mixed response as everyone knows. They are trying to stimulate economic growth in order to tackle rising inflation, and to put in measures to help households across the country facing economic hardship through rising costs of living, as well as escalating utility bills.
“What I am most concerned about with this particular element of the mini-budget is the small window of time that employers have to implement this, as 6 November is only days away. Speaking with other business owners it’s clear that they aren’t prepared – and if wages and deductions are incorrect this will cause them unnecessary financial pain, for both the employer and its employees.
“Payroll data processing errors will create a huge administration nightmare for any company, large or small, so my advice to employers is to make sure their payroll systems and software are capable of adjusting to the change before the deadline.”
Minster Micro Computers has more than 40 years’ experience in ERP and payroll systems and have delivered numerous payroll-related seminars. Supporting a range of business sectors, the company is an accredited provider of Pegasus business software.
The firm supplies payroll software, training and implementation as well as IT support services.
Businesses looking for advice on updating their payroll systems in preparation for the 6 November changes can email [email protected] or telephone 01562 68211.