Combined Employer Return (CER) and changes to the 8 hour rule
From January 2022, the Jersey 8 hour rule will be replaced with a financial limit. This limit will be equivalent to 8 hours at the minimum wage that is in place at the start of the year.
For weekly paid employees there will be a weekly threshold based on 8 hours per week at the minimum wage. The employer will need to determine, each week, if the employee has reached that threshold and deduct contributions accordingly.
It is possible that an employee may exceed the threshold in some weeks during a month and not others. The Combined Employer Return (due January 2022) will require the earnings for the entire month to be declared for tax purposes but for contributions purposes only the earnings for the weeks where contributions have been deducted should be reported.
For monthly paid employees earnings will only need to be declared for social security purposes where the monthly threshold is reached.
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)
Local Consortium Acquire Offshore Payroll Limited
A group of local companies have jointly purchased Offshore Payroll Limited (OP). OP is payroll service and software business that specialises in processing for jurisdictions that have unique tax and social rules.
The new owners include; recruitment specialists Rowlands, financial strategists Purpose and technology experts Vertix. Together, the group plans to invest in OP’s team and technology to innovate and develop the existing services.
Managing Director of Rowlands, Jeralie Pallot, commented:
‘We believe that this business is an excellent fit for Rowlands and will enable us to provide new, innovative solutions for our clients as OP evolves. I am particularly excited about the potential that OP has to offer deeper insights for employers and efficiencies gained through integration with accounting systems. We believe that with some investment, this is an incredibly useful tool that we will be able to provide to you..’
Managing Director of Purpose, Luke Smith added:
‘My focus when supporting the growth of OP will be to consider innovative ways to use the technology to understand the value of human resources. I believe that we can develop OP’s existing platform to create new ways to understand profitability, which in turn will help businesses to be more intelligent in their decision-making.’
Director of Vertix, Ross Huelin concluded:
‘I am excited to be part of a team that is committed to building on OP’s existing technology in creative and original ways. We are passionate about making complex processes simple, and where possible, automatic, to increase business efficiency and agility. I believe that the development work we undertake will add huge value to existing OP clients, but also open up the technology to have widely useful benefits for global organisations.’
Over the coming months, OP will begin growing its team and rolling out improvements for existing clients, before embarking on a programme of development.
Meet our Team – Ella Hanley
We’re excited to welcome Ella Hanley to the team as our new Client Experience Administrator! With a strong eye for detail and a real commitment to excellent service, Ella is here to make sure every aspect of your experience with us is smooth and enjoyable.
Ella brings with her a diverse background in procurement, where she honed her skills in building relationships and understanding client needs. Now, she’s applying that expertise to support our clients through software onboarding, technical training, and ongoing client care. Ella’s enthusiasm and adaptability have already made a great impression, and we’re looking forward to seeing her thrive.
“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
