EMPLOYER ALERT UK – Regulatory Change – Apprenticeship Levy

The United Kingdom has announced a recent regulatory change that has an impact on payroll. In April 2017, the way the government funds apprenticeships, in the United Kingdom, is changing. Some employers will be required to contribute to a new apprenticeship levy, and there will be changes to the funding for apprenticeship training for all employers. What is Apprenticeship Levy (AL)? The apprenticeship levy is part of the UK Government’s plan to increase apprenticeships.  It is a new tax which wants to fund 3 million new apprenticeships in England by 2020. The primary goal is that the new levy should help to improve both the quantity and quality of apprenticeships, effective April 2017. Who is affected? Any employer, in any sector across the UK, with a pay bill (total amount of earnings subject to Class 1 secondary NICs) of more than £3 million each year.  For the purposes of the levy, an ‘employer’ is someone who is a secondary contributor, with liability to pay Class 1 secondary National Insurance contributions (NICs) for their employees.  Additionally, Self-certification is required if pay bill is under £3m for a whole tax year.  It is important to beware of fluctuating earnings (overtime, bonuses) as they may trigger AL eligibility. What will the Levy Cost? Employers will pay the levy, on their entire pay bill, at a rate of 0.5%.  However, a levy allowance of £15,000 (for each tax year) can be offset against it. Therefore, this means that that the levy is only payable on pay bills of more than £3 million a year (0.5% x £3 million = £15,000).  The Levy allowance will operate on a cumulative basis, meaning monthly allowance of £1,250 can be carried forward, and any unused allowance may be […]
By |January 16th, 2017|General|0 Comments

EMPLOYER ALERT: United Kingdom: Keeping Employee Numbers Consistent

If your organization has made a decision to migrate your United Kingdom (UK) payroll processing to new payroll vendor you should not change the Employee ID Numbers. It is highly recommended that you continue using the same Employee ID Numbers used with the existing payroll vendor. If you do not, this will create a second employee record per employee with HMRC (the UK Revenue) and will lead to many PAYE under/overpayment issues. The below website from HMRC confirms the need to report Employee number/ID changes in the RTI FPS Submission (please refer to the Employee Information section): ‎https://www.gov.uk/guidance/what-payroll-information-to-report-to-hmrc#employee-information Employer alerts are provided by Kira Rubiano, Sr. Partner Management Specialist – Europe/Asia Pac.
By |November 11th, 2016|General|0 Comments

Celergo Global Payroll Founder to Present “Ins and Outs of Expatriate Shadow Payroll”

Michele Honomichl presents GPMI Webinar on August 17, 2016 Chicago, IL (August 10, 2016) -Celergo a leading provider of International Payroll solutions, announced today Founder, Michele Honomichl will present the “Ins and Outs of Expatriate Shadow Payroll: The Payroll Nobody Sees.” The webinar is part of GPMI’s Virtual Learning Environment and will be a free presented on August 17, 2016, at 11:00 am EDT. Shadow Payroll is somewhat of a mystery for many payroll professionals. This session will answer the mechanics of Shadow Payroll including; What is a Shadow Payroll, Why Do We Need Them, How Are They Calculated, and How Do You Manage Them? The answers to all of these questions will help companies reach goals of timeliness, accuracy, and compliance. “Shadow Payrolls are complex, and management of local payrolls on a global scale can be daunting. Our goal is to make it easy to understand the intricacies of these payrolls and focus on the importance of compliance”, states Honomichl, Celergo’s Founder, Executive Chairman and Chief Strategy Officer. Celergo manages many customers with large expatriate populations and disperses local populations. Michele is a subject matter expert and considered one of the foremost thought leaders in the industry. Additionally, Michele is the author of Chapter 13 of the Payroll Answer Book published by Wolters Kluwer. About Celergo Celergo is a leading provider of International Payroll solutions, supporting global companies to meet their payroll needs in 150+ countries. Celergo has built core expertise in managing some of the most complicated payrolls, in the most complex business environments around the world. The company provides cloud-based software and managed services that enable clients to apply better fiscal controls, integrate payroll with HRIS and obtain greater visibility into global payroll processes. […]
By |August 15th, 2016|Events|0 Comments

Celergo Global Payroll Appoints Kathy Hedley as Executive Vice President of Global Sales and Marketing

Global Sales Leader, to head Celergo’s Global Sales and Marketing Team Chicago, IL (Aug 1, 2016) – Celergo a leading provider of International Payroll Management Services, today announced the appointment of Kathy Hedley, as Executive Vice President of Sales and Marketing. Hedley will apply her extensive corporate sales experience to help implement consistent sales processes, scale the company’s sales force and strategically manage accounts, enabling Celergo to maintain its double-digit growth trajectory. Hedley brings 25+ years of sales and leadership experience to Celergo. Most recently, she was a senior leader at NEI Global Relocation, where she was responsible for global sales and supply chain management. Before NEI, Hedley was with Graebel Relocation Services, where she managed a large sales team and oversaw the RFP/proposal management team, focusing on Fortune 1000 accounts. Before Graebel, she held various client management, sales and sales management positions at SIRVA, Inc., a global moving and relocation services provider. Hedley began her career as one of the Top 10 drug representatives in the country for Merck Pharmaceuticals. She earned a Bachelor of Science degree in Recreation Administration from the University of Wisconsin, as well as an Associate Degree in Business. “I am excited about the opportunity to join the quality leader in global payroll services,” said Kathy Hedley. “Kathy’s strong leadership qualities, experience building highly effective teams and global expertise will help build our brand and continue our double-digit growth. Her energy and motivational spirit fit like a glove with our team and culture. I am pleased to welcome her to the Celergo executive team,” said Tim Callahan, CEO of Celergo. About Celergo Celergo is a leading provider of International Payroll solutions, supporting […]
By |August 15th, 2016|General|0 Comments

Terminating Employees Departing From Hong Kong Tax Liability

If you have employees in Hong Kong, you are likely aware that no income tax is collected from employees via payroll throughout the tax year. Rather than having income tax withheld, employees in Hong Kong are required to independently file with, and pay their income tax contributions to, Hong Kong’s Inland Revenue Department at the end of the tax year. What you may be unaware of is the responsibility that you, as an employer, have to the IRD with regard to income tax and terminating employees. In the event of an employment separation, Hong Kong requires all employers to ascertain if terminating individuals plan to leave Hong Kong and to then notify the Inland Revenue Department of terminations by filing either a form IR56F or IR56G. What may surprise you is that the IRD requires one of these filings be made one full month prior to an employee’s departure. Why? If an employee is leaving Hong Kong, whether it is for good, or simply an extended period of time, the IRD wants the opportunity to collect the tax that is owed by the employee before that person leaves the country and becomes unreachable. The submission of an IR56F indicates to the IRD that an employee will be staying in Hong Kong post separation. In this case, the employer has no further liability in the matter, as the IRD will be able to collect from the employee the income tax due at the end of the tax year. However, if a terminating employee is planning to leave Hong Kong after separation from a company, an IR56G form should be submitted. This will send notification to the IRD that someone is leaving the country and further steps need to be taken […]
By |June 2nd, 2014|Blog|0 Comments