Jersey Mini Budget – Changes to Jersey Payroll
An extensive package of measures to address the cost-of-living crisis, which formed part of the Chief Minister’s 100 day plan has been passed.
The aim of this package is to put almost £15 million back into Islanders’ pockets this year and almost £42 million in 2023.
The Minister for Treasury and Resources, Deputy Ian Gorst, said: “This mini budget will help individuals and families with their budgets in this cost of living crisis. I am pleased with the work we have done to help people with these broad measures at this time of need in the community.”
Some of the changes passed as part of the Mini budget will directly impact payroll in Jersey. A reduction from 6% to 4% for employee Social Security contributions, came into effect on the 1st of October 2022 for 3 months (ending on the 31st of December 2022).
Our clients won’t need to do anything, as the update to social security will go through to our databases automatically.
Also approved as part of the Mini budget was an above inflation increase of 12% in Income Tax thresholds and allowances, including Child Allowances, Additional Allowance and Child Care Tax Relief. From 1 January 2023 Income tax threshold for a single person will be raised from £16,550 to £18,550.
We will also be updating Jersey databases to reflect the increase in income tax thresholds from the 1st of January 2023 onward and will let our clients know if any action is required.
You can find more information about the Mini budget through the Government of Jersey website: https://www.gov.je/News/2022/Pages/MiniBudgetQandA.aspx
Source: Government of Jersey News Release.
September 18, 2024
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Guernsey and Alderney secondary pension scheme delayed
The introduction of a government-approved secondary pension scheme for Guernsey and Alderney has been delayed.
The scheme was due to be established in 2022 after being approved by deputies, but Brexit and Covid-19 have caused a delay.
No alternative start date has yet been proposed. A delay was not unexpected given the challenges of the past year, and that it could help businesses already hit by the pandemic prepare for the scheme’s implementation.
Local employers will be obliged to offer a pension scheme for staff if they do not do so already, and to make contributions of up to 3.5% of salary.
The default scheme is to be administered by a UK auto-enrolment pension provider specialist, but many businesses are setting up new schemes with local providers.
Details of the delay are set out in Employment & Social Security’s Social Security Contributory Fund Accounts 2020, due to be discussed by the States on 16 June.
Source: Guernsey press Website (Secondary pensions held up by Covid and Brexit | Guernsey Press)
Employers urged to prepare for combined employer return
Revenue Jersey is reminding employers – including building contractors – to prepare for changes to the way they submit their returns of employees’ tax deductions, taxable benefits, contributions and manpower.
Under the current system employers submit their tax, social security, and manpower information on different returns.
From January 2022, employers will submit a Combined Employer Return (CER) every month, which will include tax, social security contributions and manpower all on the same return.
The deadline for the first return under the new system is 15 February 2022.
To complete the CER, employers who use their own payroll software will need to make changes to their systems. Employers who use the online employer returns form will be redirected to a new form when they submit their January 2022 return.
Submissions will need to include the correct social security numbers and tax identification numbers for each of their employees, to be accepted. Ahead of the change, employers will need to ensure all their records are correct and up to date.
Comptroller of Revenue, Richard Summersgill, said: “This initiative will make life easier for employers, enabling them to tell Government about a number of employee-related matters just once. It is the latest step in the Government’s plans to collect revenues more efficiently by centralising services and systems where it is appropriate to do so.”
“We’re committed to achieving this by modernising our legislation, providing easier access to services online, ensuring all customers can understand and meet their obligations while reducing costs.”
“The new return will make the submission process easier for employers but it’s important that employers are sufficiently prepared by having the correct information for their employees. We have been updating employers for some time and there is detailed information and advice on how to prepare for the changes on a dedicated webpage.”
More information about changes is available via the Government of Jersey website: www.gov.je/CombinedEmployerReturn
Payroll suppliers and employers have received information about the changes to give them enough time to update their systems and software.
Employers can also request IT specifications for their payroll provider, or subscribe to regular email updates by emailing: cer@gov.je
Source: Government of Jersey News Release.
Meet our Team – Jeralie Pallot
Jeralie was a member of the team involved in the acquisition of Offshore Payroll in 2019. As former Executive Director of one of Jersey’s leading recruitment companies, Rowlands Recruitment, she has over 30 years of experience in the employment markets across NZ, Australia and Jersey and during that time gained extensive business experience in Payroll Services and a Remuneration Survey.
“A lot quicker than other products I’ve worked on”
The CER submissions are quick and simple. Also sending payslips and the staff having their own log in to view older payslips, removing the need to re-supply them with payslips for tax purposes, something I used to get a lot! Good support when needed, helpful videos and links for guidance.
Hayley Buesnel – Finance Director
