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 […]
Celergo would like to inform you of a Benefits Legislation change in Turkey that will have an impact on payroll. In November 2016, the Prime Ministry Circular on Automatic Participation in the Individual Pension System (BES) was published in the Official Gazette, numbered 29900. The automatic participation to BES, also known as “Compulsory Individual Pension,” will come into effect as of January 1, 2017. There are new duties on employers to help more people save for their retirement. As an Employer you will be required to: • Agree with one or more pension companies authorized by the Under Secretariat of Treasury to regulate the pension plan for automatic participation. • Determine the authorized officers for the signature of the pension contract on behalf of the central and/or provincial units. • Present a retirement plan to the employees covered by the law and should transfer the withheld employee contributions to the retirement company. All institutions that employ five (5) or more employees will be gradually included in automatic participation. • As of January 1st, 2017, enterprises with 1,000 or more employees. • As of September 1st, 2017, with 100-249 employees. • As of January 1st, 2018, enterprises with 50-100 employees and all local administrations. • As of July 1st, 2018, enterprises with 10-50 employees. • As of January 1st, 2019, enterprises with 5-9 employees. Below are some common questions and answers to help you better understand the impact of this change: 1. The Government is mandating that all Employers set up a Pension Scheme for their employees to be automatically enrolled in, correct? Prior to this change, a pension scheme was a voluntary benefit. Answer: Yes, correct. According to the new regulation employers with […]
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.
Michele Honomichl presents” Global Regional Payroll Differences” Chicago, IL (September 28, 2016) -Celergo, a leading provider of Global Payroll Management, today announced their participation at the California Payroll Conference, October 6-7, in Sacramento, CA. Michele Honomichl, Founder, Executive Chairman & Chief Strategy Officer of Celergo will present, “Global Payroll: Regional Payroll Differences.” Payroll professionals today are not only required to manage compliance at a local payroll level but also must be compliant with global standards including OFAC, FCPA, UK Bribery Act, European Data Privacy and much more. Michele will present Global Payroll with a Regional Focus, identifying the payroll differences in the various regions of the world and providing payroll professionals with an overview of what to expect as they continue to grow globally. “Our goal is to make it easy to understand the intricacies of global payrolls and focus on the importance of compliance,” says Honomichl. Celergo manages many global customers with dispersed local populations in every major region of the world. Michele is a subject matter expert who has been a presenter at the American Payroll Association Congress, SHRM, and a Keynote speaker at the 2016 Texas Payroll Conference on Globalization. To learn more about the numerous topics, Michele has previously spoken; please visit our website. About Celergo Celergo provides the leading fully-managed international payroll solution, meeting the needs of companies in 150+ countries with technology-powered, service-backed capabilities. As pioneers in payroll outsourcing, Celergo has managed some of the most complicated payrolls and built an unparalleled set of competencies and expertise, along with cloud-based software that integrates with all major HRIS, helping clients find efficiencies, improve accuracy, reduce costs, and minimize risk. Celergo’s experienced, multi-lingual staff covers […]
Celergo’s new space supports current and future planned capacity growth Chicago, IL (September 28, 2016) – Celergo, a leading provider of international payroll management solutions, today announced the relocation of their Budapest office to accommodate current growth and future expansion plans. The new location, 1093, Közraktár utca 30. 6. emelet, Hungary, is situated on the east bank of the Danube River and has a magnificent view of the historic city, an exclusive inner garden, a rooftop terrace, and advanced technical solutions – providing a high quality working environment for Celergo team members. Celergo’s Hungary office currently services over 200 corporate and non-profit clients with payrolls in Europe, the Middle East, Africa and parts of Asia. The new office location allows the company to maintain the double-digit growth of its EMEA business while providing enhanced amenities and generous meeting space to host clients, partners, and visitors. “This idyllic location on the Danube is the perfect place to continue our mission of achieving the simplest global payrolls and the happiest customers,” said Tim Callahan, CEO of Celergo. We are excited about the growth we are experiencing in EMEA, and this move represents our commitment to continue to build our presence in this region.” About Celergo Celergo provides the leading fully-managed international payroll solution, meeting the needs of companies in 150+ countries with technology-powered, service-backed capabilities. As pioneers in payroll outsourcing, Celergo has managed some of the most complicated payrolls and built an unparalleled set of competencies and expertise, along with cloud-based software that integrates with all major HR systems, helping clients find efficiencies, improve accuracy, reduce costs, and minimize risk. Celergo’s experienced, multilingual staff covers all time zones and regions, delivering the highest quality service from four […]