With the national minimum wage (NMW) and new class 1 employers NIC changes both being age dependant it’s important to keep an eye on the age of your younger employees. The NMW hourly rates are changing again to the following:
Once the national minimum wage changes take effect, an employee’s pay has to be increased at the start of the 1st pay period that falls on or after the date of the NMW change (whether they’re paid weekly or monthly). This can either happen when all the NMW rates change on the 1 October each year, or when a particular employee moves to a different rate band as they get older or complete their apprenticeship.
It’s a criminal offence not to pay employees the national minimum wage or to falsify payment records relating to it. An employer can currently face a financial penalty of £20,000 for underpayment of NMW, but this is changing soon to £20,000 per employee. Any business that doesn’t pay their workers the required wage will also be named and shamed by HMRC, no matter how small the underpayment is.
It’s also important to keep on top of when employees turn 21. From the 6 April 2015, wages of up to £815 per week paid to workers under 21, will have a zero rate of employers’ class 1 NIC. However, as soon as the employee is 21 the normal NIC rate will apply.
If you’d like any more information on this, do feel free to get in touch with us on 01782 279615.