Before leaping into the pitfalls of the updated Job Support Scheme (and why your clients will lose out), I am going to clear up some of the confusion about what it is.
An overhaul of the scheme rules was announced on 22 October, making the scheme much more attractive to employers across the UK.
Although these updated scheme rules make much more sense for employers trying to save their business in these trying times, there are still a number of shortfalls to the scheme that you need to be aware of to ensure you give your clients the best advice. Many businesses need to decide whether to avail of the Job Support Scheme or face the possibility of employee redundancies.
Sadly, it does not appear that the Job Support Scheme will avoid arise of redundancies over the coming months as employers seek to manage their cashflows to survive the winter months. Join our latest webinar to find out more about the New Job Support Scheme and whether it’s right for your clients. These webinars are incredibly popular, and our COVID-19 series has achieved 99.4% customer satisfaction, so register now to secure your place.
In this webinar, we look at what you need to know about the new and updated Job Support Scheme, including which employees are eligible, why your clients will lose out, the level of government funding, and how the scheme is actioned through payroll. Whether you use BrightPay or not to run your payroll you are more than welcome to join. We will also explore the rise in redundancies and the new changes regarding statutory redundancy and notice pay for furloughed employees. Register now.
What you'll learn:
BrightPay and other companies were required to offer essential functions such as supporting all RTI submission types, full automatic enrolment functionality and HMRC recognised.
Digital.com’s research team conducted a 40-hour assessment of over 210 payroll software companies across the web.
Digital.com reviews and compares the best products, services, and software for running or growing a small business website or online shop. The platform collects twitter comments and uses sentiment analysis to score companies and their products.
The award comes just one year after BrightPay was announced as the winner of ‘Payroll Software of the Year’ 2019 at the ICB Luca Awards. This also follows BrightPay winning Payroll Software of the Year 2018 at the AccountingWEB Software Excellence Awards.
With over 25 years of payroll experience, our products are used to process the payroll for over 250,000 businesses across the UK and Ireland. BrightPay also has an impressive 99% customer satisfaction rate and a 5-star rating on Software Advice.
BrightPay for SMEs
BrightPay includes several useful payroll features and support that are very beneficial for employers:
These are just a few of the many features we have in BrightPay that can help SMEs, but there’s so much more on offer.
Don’t miss out - book a payroll demo today to see these features in action and to discover more ways that BrightPay’s award-winning software can improve efficiency and save you time.
Thanks again to Digital.com for the award and all our customers supporting us during this challenging period.
Processing the payroll for your client’s employees and calculating payroll taxes accurately and on time are two of the most important tasks for payroll bureaus and accountants. That's why we have created this new webinar:
Thursday 5th November 11am
What you'll learn:
Tracking payroll figures in accounting systems is also equally important. In the past adding payroll journals was a manual process of exporting a CSV file from the payroll software, mapping the nominal codes and uploading them into AccountsIQ.
Without API integration between payroll and accounting systems, payroll journal information would need to be entered manually into the accounting system, which can result in errors and duplication of efforts. You may also need to make journal entries to fix mistakes. In order for this information to be included in financial statements efficiently, the payroll and accounting system should ideally be integrated through an API facility.
Payroll and accounting integration between BrightPay and AccountsIQ is a critical part of the payroll reporting process. BrightPay have now added an API payroll journal feature allowing users to create wage journals from finalised pay periods so that they can be added into AccountsIQ.
BrightPay produces the payroll journal in a file format that is unique to AccountsIQ allowing users to easily upload their payroll figures into their general ledger in just a few clicks.
Once you have entered your AccountsIQ login credentials, BrightPay will automatically retrieve your nominal ledger accounts so that you can easily map each payroll data item to the relevant nominal account. The nominal ledger mapping is then saved for an even speedier process going forward. The payroll journal can include records for payslips across multiple pay frequencies. Users then have the option to include individual records for each employee or merge the records for each unique date. A nominal account can be used for multiple items.
Some accounting programs come with payroll modules that are fully integrated from the outset. However, the payroll module can be expensive, outdated or/and lack basic automation features. BrightPay and AccountsIQ are multi-award winning software systems that increase efficiency, avoid duplication of efforts and reduce the possibility of manual processing errors. The accuracy and automation of this wage journal API will help to ensure that your books and your payroll journal match up. This can be a critical part of both payroll and accounting.
Webinar: Payroll in the Connect Era: How integration has transformed the world of payroll
To find out more about how you could benefit from the BrightPay and AccountsIQ integration register for the webinar now.
Thursday 5th November - 11am
In today’s technology-driven world, how well a business performs – whether it succeeds or fails – is increasingly dependent on how well it connects applications and integrates systems. That’s why BrightPay and AccountsIQ have teamed up, making it easier to keep your payroll and accounting systems aligned. Join BrightPay & AccountsIQ on Thursday 5th November to discover how you can streamline your payroll and accounting processes. Register today.
Before diving into the positives and negatives of the new Job Support Scheme I want to recap on what it is.
The new Job Support Scheme was announced by the government in September, and it'is designed to top up the wages of employees unable to work full-time because of coronavirus restrictions over the winter. Employers using the Job Support Scheme will also be able to claim the Job Retention Bonus if they meet the eligibility criteria.
Businesses will continue to pay their employees for time worked, but the burden of hours not worked will be split between the employer, the Government (through wage support) and the employee (through a wage reduction), and the employee will keep their job.
The scheme will open on 1 November 2020 and run for 6 months, until April 2021.
This scheme is designed to protect jobs where businesses are facing lower demand over the winter months due to coronavirus. 9.6 million employees are still on furlough leave across the UK, with the scheme still supporting 1.2 million businesses. This new scheme could help mitigate the impact of the end of Coronavirus Job Retention Scheme ending on 31st October.
Employers can receive up to £697.92 per month wage top up of eligible employees unable to work full-time because of coronavirus restrictions over the winter.
An unexpected silver lining to the scheme is that employers using the Job Support Scheme will also be able to claim the Job Retention Bonus if they meet the eligibility criteria. This is a one-off payment of £1,000 to employers who have availed of the CJRS for each furloughed employee who remains continuously employed until 31 January 2021.
It’s far less generous than the current Job Retention Scheme - The Government contribution will be capped at £697.92 a month compared to the initial £2,500 plus associated Employers’ National Insurance and pension contribution under the Job Retention Scheme placing a greater responsibility on the employer to fund employment costs. In fact, under the scheme the government never pays more than 22% of the employees' overall salary.
The employer ends up paying more in wages than the hours they get in return - The percentage cost to the employer far outweighs the percentage of productive hours provided by that employee to the business and a stark reality is that it costs more than 50% more to employ several people working 40% of the time compared to fewer people working full time.
Employees cannot be made redundant or put on notice of redundancy during the period within which their employer is claiming the grant for that employee. Therefore, employers face the dilemma now of assessing demand for the forthcoming months for their business and making decisions about the number of employees required.
Job Support Scheme payments will be made monthly in arrears commencing in December, reimbursing the employer for the government’s contribution. The grant will not cover employer NICs or pension contributions, but these contributions will remain payable by the employer. This means that the overall cost of employment for employers is higher than simply their contribution to employee salaries.
Sadly, it does not appear that the Job Support Scheme will avoid a rise of redundancies over the coming months as employers seek to manage their cashflows to survive the winter months. Join our latest webinar to find out more about the New Job Support Scheme and whether it’s right for your organisation.
In this webinar, we look at what you need to know about the 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 explore the rise in redundancies and the new changes regarding statutory redundancy and notice pay for furloughed employees.
What you'll learn:
Figures announced have advised that under the Coronavirus Job Retention Scheme (CJRS) HMRC have already paid out £39.3 billion to employers up until 20th September 2020, an increase of £4.9 billion from £35.4 billion that was paid out to employers up until 16th August 2020. 9.6 million employees still have been furloughed and the amount of employers claiming under the CJRS remained at 1.2 million.
In October, only 60% of the wages up to a maximum of £1,875 in the month can be claimed under the Coronavirus Job Retention Scheme and employers must pay the additional 20% to ensure employees are receiving 80%. Employers must also pay employers’ National Insurance and employers’ pension contribution costs. As the CJRS comes to an end on 31st October 2020, employers must submit all claims under this scheme on HMRC’s online portal by 30th November 2020.
HMRC has confirmed that if an employee is on jury duty and is being paid by their employer while on jury duty, the employer can submit a claim for wages paid under the Coronavirus Job Retention Scheme. HMRC have advised “The employee is furloughed, so is not doing any work for their employer or doing anything of benefit for them. They are doing work for a third party, but that’s allowable under CJRS (whether voluntary or paid)”.
When flexible furlough was introduced on 1st July 2020, approximately 950,000 employees returned to work on a part time basis which was equal to 20% of employees that were furloughed nationwide.
HMRC have started to send letters regarding Coronavirus Job Retention Scheme claims to approximately 3,000 employers who HMRC believe may have overclaimed for payments under the scheme. HMRC estimate that there could be a figure of up to £3.6 billion claimed wrongly or fraudulently under the CRJS and there are 27,000 cases being examined by HMRC at present where an overclaim may have occurred. There have been a number of arrests due to fraud relating to the CJRS, one being for an amount of nearly £495,000.
As soon as we know more, we will be updating our online help guides, and join our webinar on 18th November where we will be able to show you the Job Support Scheme in more detail, along with how it is actioned in the payroll software.
18th November – 10.30am
In this webinar, we look at what you need to know about the 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 explore the rise in redundancies and the new changes regarding statutory redundancy and notice pay for furloughed employees. Register now.
What you'll learn:
• Everything you need to know about the Job Support Scheme
• Which employers and employees are eligible
• How to operate the Job Support Scheme
• How BrightPay’s Job Support Scheme Calculator & Claim Report works
• How to calculate notice pay and redundancy pay for furloughed employees
• How to keep in touch with employees on reduced hours
2020 has been a transformative year for most businesses. Many employers have had to take a long hard look at how they manage their employees and make significant changes in the wake of COVID-19 in order to adapt to what is quickly becoming the new normal. For a large proportion of these businesses, allowing employees to work remotely is playing a central role in that change. And this throws up some challenges.
Remote working isn’t a new phenomenon. Cloud innovations have made it possible for people to work from home for many years. However, most businesses have been reluctant to embrace this practice up until now. This is because, when employees are spread out, even the most basic tasks such as distributing payslips, applying for annual leave and internal communication can be more difficult.
Today, however, employers are finding themselves in a position where they must allow employees to work remotely and find clever solutions to these challenges. And BrightPay Connect is one such solution that makes remote working easier for everyone.
You might not think that remote working has any impact on processing payroll, especially if you’re a small business with just one payroll administrator. But there are a number of ways that remote working can indirectly impact payroll. It also has numerous knock-on effects on human resources management which need to be addressed in order for a business to thrive.
Here are some examples of the payroll and HR challenges presented by remote working:
BrightPay Connect is a cloud portal add-on to our payroll software. While the payroll software gives you everything you need to process your payroll, BrightPay Connect offers a range of additional features that streamline your human resource management.
The features of BrightPay Connect include:
If your business is embracing remote working and trying to find ways to facilitate this new practice, then book your free BrightPay Connect demo today and let our team of experts show you just how much easier remote working can be.
The Department of Education have announced the new student loan thresholds that will apply from 6th April 2021.
The repayment threshold for Student Loan Plan 1 will increase by 3% and the repayment threshold for Student Loan Plan 2 will increase by 2.7%.
The repayment threshold for the Postgraduate loans will remain the same.
For any loans before 2012, Plan 1 Loans will apply and for loans after 2012 Plan 2 Loans will apply.
Earnings above the thresholds for both Plan 1 and Plan 2 for 2021/22 will be calculated as normal at 9%. The rate of the postgraduate loan type introduced in the 2019/20 tax year will continue to be calculated at 6%.
Summary of the Student Plan thresholds:
A Student Loan Type 4 will come into effect from 6th April 2021 for students who have taken a loan out in Scotland. The First Minister has committed to the student loan repayment threshold which will rise to £25,000 in Scotland from April 2021.
In BrightPay 2021/22, the new student loan repayment thresholds for both plans will automatically be calculated by the payroll software and the appropriate student loan deduction applied.
Along with the API support added for Sage, Quickbooks and Xero in 2019/20, BrightPay 2020/21 now supports posting journals directly via API to FreeAgent, Kashflow, Twinfield and AccountsIQ. The option to create a CSV journal is also still available where supported.
BrightPay has traditionally only allowed new employees to be added from a CSV file. Now, you can both add new employees and update existing employees from a CSV file. (The same has been done for subcontractors).
While we have traditionally focused our announcements of new features and updates in each new tax year version of BrightPay, it doesn't mean we're not busy during the rest of the year. In 2019/20, we released many updates and enhancements throughout the tax year, all of which are of course included in BrightPay 2020/21. See our release notes for full details. Here's a quick reminder of some of the main areas of improvement:
We're continually at work on the next version of BrightPay, developing new features and making any required fixes and improvements. See our release notes to keep track of what has been changed to date at any time.
In light of the recent Coronavirus outbreak, many employers are starting to prepare for the possibility of employees needing to work from home.
Whether you are a single employer or a bureau, you will need an internet connection for transmitting files to HMRC.
Where you are using a different computer, BrightPay will need to be installed on that computer. This is a quick download from our website. Then, simply enter the activation key that was included on your invoice. If you can’t find this key, we can resend it to you.
Okay, you have an internet connection and a computer with BrightPay installed on it, what about the payroll file(s)?
Alternatively, before leaving the office, simply copy the payroll file to a USB key or email it to yourself.
There are some useful help links at the bottom of this article to help with any of these options.
Alternatively, before leaving the office, staff members may wish to save their payroll file(s) to an external drive, then follow the help below on Transferring BrightPay from one PC to another.
As of 10 March, the number of confirmed cases of coronavirus increased to 373 in the UK, with cases across Europe also surging. With the number of cases bound to escalate, it has been predicted that if the coronavirus outbreak worsens, up to a fifth of UK workers could be off sick.
With panic over coronavirus soaring, many workers are being asked to stay away from the office and do day-to-day tasks from the comfort of their home. Not going into the office is an effective way of preventing the spread of coronavirus, because it minimises the risk of you coming into contact with someone carrying the disease.
The reality is, working from home is already very popular, potential pandemic or not. Flexible working is a trend that has emerged in the last decade as more people seek that ideal work-life balance instead of work-life burnout.
Nearly a quarter of Britain’s workforce now work flexibly, that is, they work part of the week in an office and part at home, highlighting how quickly this trend is growing. Flexible working brings many work-life balance benefits as employees have more time to see their family, exercise and dedicate time to themselves. Seven in 10 of those who work flexibly say they are less stressed as a result of their working arrangement.
As well as the health benefits, it often results in happier employees. They then potentially work harder and are more productive. For employers, flexible working also helps to attract and retain talented employees. Additionally, it can result in increased loyalty and reduced office space cost.
Businesses need to carefully consider which processes and tools will make flexible work as productive and positive as possible for their employees. You need to make sure that they have essentials such as laptops, a reliable internet connection and being able to connect to systems remotely. This would have been difficult a few years ago, but thanks to the cloud, you can have everything you need at all times.
Although the payroll itself cannot be processed online with BrightPay Connect, the payroll software is still very flexible. Each BrightPay licence can be installed on up to 10 PCs where users have the option to process the payroll from 10 separate locations meaning you don’t need cloud payroll to operate and process your payroll. In addition, you can log into your BrightPay Connect account to view your payroll information at any time. You no longer need to be seated at your desk in the office to access the system - all the data you need to do your job is available on any of the 10 PC’s that the BrightPay application is installed on.
If you are not using the BrightPay Connect add-on, you can still access the payroll data file through a cloud environment to process the payroll. Again, the software itself can be installed to the local C drive of up to 10 PCs, be it a home computer or a laptop. The payroll files can be stored on a secure server or cloud environment, such as Dropbox or Google Drive, where the payroll information can be accessed from multiple computers.
With BrightPay Connect’s automatic cloud backup, payroll information is stored online and can be accessed by employers anywhere, anytime. Employers can also use BrightPay Connect to remotely manage employee’s leave, upload employee documents and send communications to employees that are working remotely.
Will 2020 be the year in which office employees working more from home becomes the norm? Although many employers have implemented a mandatory ‘work from home’ policy as a precaution against coronavirus, it could also be the turning point for many businesses to recognise just how beneficial flexible working can be.