Health and Social Care Levy
It’s the topic on everybody’s lips, the ‘National Insurance’ increase, known as the Health and Social Care Levy.
With ongoing speculation that it will be delayed due to the cost-of-living crisis, and ongoing pressure on the government to postpone the increase, many employers and employees have ‘buried their head in the sand’ and not addressed the increased employment cost and effect on NET pay.
As it currently stands, the new tax year (April 2022) will bring a new 1.25% levy to employers, employees, and self-employed individuals liable to pay National Insurance contributions, and there have been no announcements that indicate that the government will delay this.
Employees who see no change in their gross pay between tax years will see a reduction in their take home pay if they earn over the Nation insurance threshold. Employers will see an increase in the Employers NI (employment costs).
Communicating the change to employees is important for all employers, to inform their employees of the change and the possible impact on their take home pay . This will enable employees to plan their finances in advance and should prevent questions after the first payroll of the new tax year.
To help employers and employees with the change:
dhpayroll are proud to be linked with paydashboard for our online payslips solution, and employers and employees will be please to know that there is a built in Levy Calculator on the system.
We can also add a message onto the payslips sent out in April explaining the change in National insurance contributions.
More information on the Levy is also on the site, so employees and employers can learn everything they need to know.
Comments