Payroll Year-End: Sage 50cloud Payroll V26 Now Available
Multiple updates due to the late budget ...
Posted by Alison Mead on 02/03/2020 @ 8:00AM
The new chancellor has announced a later Budget on 11th March 2020 so this year's payroll year-end update for Sage 50cloud will need to be rolled out in phases ...
This year's Sage 50cloud payroll year-end update is in two parts, both of which need installing!
copyright: yurolaitsalbert / 123rf
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 an 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.
Until next time ...
Would you like to know more?
If you'd like to learn more about the Sage 50cloud payroll year-end or need some help to install the updates, do give me a call on 01604 420057, leave a comment below or use the Messenger tool you can see in the bottom right of your screen to chat right now.
About Alison Mead ...
Alison loves bookkeeping and supporting bookkeepers. She has been helping clients to be better bookkeepers in Sage 50 for over 24 years and has been Xero Accredited in accounts and payroll for a number of years too.
She specialises in a very unique hand-holding method of training, helping bookkeepers and business owners to use their accounts software as and when they need support in setting up and producing their invoices, reports and financial information.
Alison combines her role at Silicon Bullet with her Forever Living network marketing businesses and is often to be seen at business networking meetings as she likes to keep busy.
You know what they say: if you want something done well ask a busy person!
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