Data Protection Maternity Paternity and Salary Sacrifice

Transcription

1 Data Protection Maternity Paternity and Salary Sacrifice

2 AGENDA Data Protection Statutory Payments and Leave Salary Sacrifice

3 Data Protection

4 What has not changed The eight data protection principles Obligations on data controllers Rights of data subjects No. 4

5 Data Protection Principles 1 Personal data must be fair and lawfully processed 2 Data must be collated for a specific purpose 3 Adequate, relevant and not excessive 4 Accurate and up to date 5 Retained only as long as necessary 6 Rights of data subjects protected 7 Security against unauthorised/unlawful processing 8 Transfers outside the EEA only with adequate protection

6 What has changed Computing Power Computer usage required first data protection laws Computing power makes it easier to: Gather and sort more data Storage Capacity makes it easier to: Gather copy more data Forget to delete more data As your organisation does more and more with the information Criminally inclined can do more to protect data.

7 Statutory payments

8 key maternity weeks expected week of childbirth (EWC) weeks of pregnancy miscarriage stillbirth MATB1 from weeks before EWC E W C 26 weeks continuous employment for SMP QW earliest leave/smp can start pregnancy related absence. info@learnpayroll.co.uk

9 statutory maternity leave and pay up to 52 weeks statutory maternity leave (SML) 26 weeks ordinary (OML) 26 weeks additional (AML) up to 39 weeks statutory maternity pay (SMP). up to 6 weeks at 90% of earnings up to 33 weeks at standard SMP info@learnpayroll.co.uk

10 STATUTORY PAYMENTS 2009/ /11 Statutory Sick Pay Statutory Maternity Pay Statutory Adoption Pay Statutory Paternity Pay

11 STATUTORY PAYMENTS Rates 2010/11 Recovery of SSP, SMP, SPP and SAP Percentage threshold scheme SMP, SPP and SAP

12 STATUTORY PAYMENTS New form SMP1 Introduced October 2009 Employers can use old forms Currently two electronic versions available.

13 STATUTORY PAYMENTS Sick pay and holiday pay in the SMP pay period Returns to work, then off sick Returns to work, then off on annual leave

14 (Don't mention the BIK which we are still grappling with) EMPLOYMENT LAW Additional Paternity Leave and Pay Outline of the new rights April 2011 Availability Who is eligible and criteria When the leave can be taken and complete 20 weeks following child birth Complete before child reaches 1 years Minimum leave 2 weeks Entitlement conditions Similar to SML.

15 (Don't mention the BIK which we are still grappling with) EMPLOYMENT LAW Additional Paternity Leave and Pay Payment Payable if taken during mothers paid leave 10 KIT days Administration Self Certification Notification Special conditions Mother dies. Amendment to pregnant workers directive UK benefits better than proposals.

16 (Don't mention the BIK which we are still grappling with) EMPLOYMENT LAW Additional Paternity Leave and Pay Documents SC3 SC4 SC5 Additional forms EDC 3 April 2011 Special conditions Mother dies. Amendment to pregnant workers directive UK benefits better than proposals.

17 EMPLOYMENT LAW Parental leave New Directive adopted Extending to 4 months Member States to implement within 2 years UK law meets most of requirements To be taken up to the age of eight.

18 MISCELLANEOUS Medical Certificate Fit note to replace sick note May be fit for some work now Workplace or job role changes Changes to medical certificates Merging Med5 into Med3 and abolishing Med4 Electronically generated medical certificates Empowering an individual to return to work

19 Salary Sacrifice

20 INTRODUCTION What is salary sacrifice? Salary sacrifice and flexible benefits Why do it? Employee Employer Example follows

21 Employee gross pay 47, (subject to 40% marginal tax) Agrees to sacrifice 5, (for childcare vouchers face value 100) Without Sal Sac: INTRODUCTION EMPLOYEE - Why do it? 1/3 Income tax of 2,080 (i.e. 5,200 x 40%) 2, Class 1 NICs of 52 (i.e. 5,200 x 1%) Total liability 2, Note HRMC exempt amount for childcare vouchers is 55 p/w and 243 p/m

22 INTRODUCTION EMPLOYEE - Why do it? 2/3 Salary Sacrificed 5, Exempt portion 2, Thus, Reportable amount = 2, ,340 x 40% = ,340 x 1% = total liability Without sal sac, liability = 2, Saving 1,172.60

23 INTRODUCTION EMPLOYER Why do it? 3/3 Employer employment costs reduced by : original cost of salary 5,200 x 12.8% = Instead non-exempt amount 2,340 x 12.8% = ( = 45 x 52) Saving

24 CONTRACTUAL IMPLICATIONS Notional (or reference) salary Pensionable earnings Employer s decision

25 CONTRACTUAL IMPLICATIONS National Minimum Wage Other than accommodation benefits do not count towards NMW value Childcare vouchers Referral to the Low Pay Commission Generally available

26 CONTRACTUAL IMPLICATIONS Maternity leave and non-cash benefits Must be provided throughout leave

27 Expenses and Benefits Salary Sacrifice Childcare Voucher Scheme to change 6 April 2011 Basic Rate tax relief only

28 Expenses and Benefits Salary Sacrifice Childcare Voucher Scheme Employees in scheme prior to 6 April 2011 unaffected New scheme from 6 April 2011 for new entrants or new schemes

29 Expenses and Benefits Salary Sacrifice Basic Rate Higher Rate Additional Rate Weekly Monthly Annual

30 Expenses and Benefits Salary Sacrifice Childcare Voucher New Scheme 6 April earnings assessment to be carried out, includes BIKs Records to be kept for compliance purposes Personal Allowance acceptable to use code as at 6 April Assessment valid for 12 months

31 MISCELLANEOUS Salary Sacrifice Arrangements Cycle to work arrangements HMRC s approach where some employees are excluded Entered into by 18 December 2009 In future Sale of cycles after end of loan period Terms on which simplified valuation approach/table can be used The valuation table

32 Expenses and Benefits Cycle to Work Matrix Age of Cycle Acceptable disposal value % Original price of cycle less than Year 18% 25% 18 months 16% 21% 2 years 13% 17% 3 years 8% 12% 4 years 3% 7% 5 years Negligible 2% 6 years and over Negligible Negligible Original Price 500+

33 Expenses and Benefits Salary Sacrifice Workplace Canteens From 6 April 2011 legislation restricts the benefit of free or subsidised meals where in conjunction with salary sacrifice or flexible benefits arrangements Draft legislation published Feb 2010

34 MISCELLANEOUS Salary Sacrifice Arrangements Bus passes Bus pass arrangements already in place Entered into by 18 December 2009

35 THE END Have a safe journey home.

36 Payroll Update