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National Living Wage

Article ID
12015
Article Name
National Living Wage
Created Date
17th December 2019
Product
IRIS PAYE-Master, IRIS Payroll Business, IRIS Bureau Payroll, IRIS Payroll Professional, Earnie
Problem

The Government’s new National Living Wage (NLW) is now law.
Workers aged 25 or over and not in the first year of an apprenticeship, are legally entitled to at least £8.21 per hour (tax year 19/20). If you’re an employer, you’ll need to make sure you’re paying your staff correctly.

For further details on the National living wage please visit www.livingwage.gov.uk/

HMRC minimum wage calculator can be found here: www.gov.uk/am-i-getting-minimum-wage/y

Resolution

Earnie

National and Minimum Living Wage Warnings

A warning has been added to Pay Rates which will display when saving changes to Employee Details and during the payroll run.

  • You will see the warning when saving changes on the Employee Details screen if any of the employee’s pay rate(s) in use are less than the current National Minimum Wage or National Living Wage
  • You will see the warning during the payroll run if any of the pay rates used in the payroll are less than the current National Minimum Wage or National Living Wage
    Please Note: We have been made aware of an issue which may prevent NMW & NLW warnings appearing during the payroll run. To prevent this causing employees to be paid at an incorrect rate we recommend you use the report “National Minimum & Living Wage“.
    • To install the report go to “Reports” | “Library Selection” | “Miscellaneous“. Click on the report “National Minimum and Living Wage” and click “Select” to install it.
    • You can then produce the report from “Reports” | “Print Other Reports
      Page 1 of this report will highlight any employees below the correct pay rates
      Page 2 of this report will highlight any employees who will need their rate changing in the next 30 days.

The current rates will be determined based on the system date for Employee Details changes and Work Period Start date and End Date for payroll warnings

It is possible to disable these warnings in Company Options.

To do this:
  • From the Company menu, select Alter Company Options
  • On the Payroll tab, click the Disable Warnings button
  • This opens a list of the rates set up for that company. Tick the box next to the rates you don’t wish to have a warning

IRIS Payroll Business / IRIS Bureau Payroll

All hourly rates in Payroll Business & Bureau Payroll will be checked to see if they meet the requirements for national living wage when they are applied to an employee record.


GP Payroll

The system will identify any employees who are receiving below the minimum rate for their age and a message will be displayed.

If, during Payroll Calculations, the system detects any employees whose pay rates used in the period being calculated do not meet the minimum, you have the option to print a report showing these individuals.


IRIS PAYE-Master

There is no automatic check in place for PAYE-Master.

It is important users check the rates in use for employees meet the minimums as required for their age bracket.

The best report to use to check records is the “Pension Age Report“. This is available from “Pensions” > “Print“> “Pension Age Report“.

This report will highlight any employee with birthdays in your current pay period and what age they will become. This way you can identify the employee reaching 25 so you know whose pay you need to review.

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