As the budget is later this year, the payroll year-end update for Sage 50cloud will need to be rolled out in phases ...
The first software update, which contains a number of new features and some significant improvements is already available for update via the Sage website. Here’s a quick summary of what's new:
- Employment allowance changes
From April 2020, HMRC are introducing new rules and processes for claiming employment allowance. Sage 50cloud Payroll will include an option to apply for the employment allowance.
- Class 1A NICs on termination payments
From April 2020, employer NICs will be introduced on termination payments above £30,000, there will be no employee's NICs on these payments. In the new tax year, you can select the Class 1A NICs checkbox on the pay element set up to deal with the payment above £30,000.
- Parental bereavement leave and pay
The Parental Bereavement (Leave and Pay) Act 2018 introduces a new employment right to Parental Bereavement Leave (PBL) and entitlement to Statutory Parental Bereavement Pay (SPBP) for any qualifying parent who loses a child under the age of 18 or who suffers a still-birth from 24 weeks of pregnancy. The new entitlement will apply to deaths from April 2020.
- Off-payroll working rules
If a worker is assessed to be inside of the IR35 rules then they are classed as an employee. This means that although tax and NICs should be deducted, they are not entitled to any other employee benefits, such as statutory pay, AE pension or holidays. You'll be able to set an employee's employment type as 'deemed' and the FPS notifies HMRC of this.
- Zero emissions mileage for company cars
A new Zero Emissions Mileage field will be added so that the relevant value can be recorded and used when establishing the appropriate percentage used to calculate the car cash equivalent for vehicles partly powered by electricity.
- Company car calculation
An easier way for employers who payroll their company cars in Sage 50cloud Payroll. You will be able to calculate the taxable cash equivalent of the company car for the current tax year, in addition to the previous tax year rather than manually calculating the relevant values to include in the FPS.
- Holiday pay reference period changes
From April 2020, the holiday pay reference period will be lengthened from 12 to 52 weeks. This will be included in v26.
Be aware that this update and the update issued immediately following the Budget on 11th March 2020 will need to be installed before you can process your payroll in the new tax year.
If anything I've written here resonates with you, call me on 01604 420057 and let's see how we can help you.