SBS Budgets update - National Insurance, Maternity Pay and Temporary NJC Increase 2022/23
The latest National Insurance, Maternity SMP rates and a temporary increase for NJC scales 1 and 2 have been announced by the government.
As ever, if you have any questions about how SBS Budgets could help with these changes please feel free to contact our team on sbsonline@schoolbusinessservices.co.uk and 0345 222 1551 | Opt 8.
The National Insurance update:
This year, the changes that apply from April 1st, to the National Insurance Employer contribution includes increasing the threshold to £9100.00 before National Insurance for each staff member and the rate applied has also increased to 15.05% (from 13.80% which is has been in previous years) (this is for staff over 21). Please see the table below for this.
| Age bracket | Weekly Earning (£) | Yearly Earnings (£) | Rate (%) |
|---|---|---|---|
| 21 or over | ⩽175 | ⩽9100 | 0 |
| >175 | >9100 | 15.05 | |
| Under 21 | ⩽967 | ⩽50270 | 0 |
| >967 | >50270 | 15.05 |
Maternity Pay:
The HMRC have announced the latest SMP rate of £156.66 from April 1st.
For more information on the National Insurance and SMP rates, please see the government website https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2022-to-2023.
The Temporary NJC Scales update for scales 1 & 2:
On the 1st April 2022, the National living Wage (NLW) will increase from £8.91 per hour to £9.50. Once the full tables have been confirmed, they will be integrated into SBS Budgets. Please go to https://www.local.gov.uk/temporary-increase-required-njc-pay-points-1-and-2 for more information.
SBS Budgets Customers:
The new National Insurance and Maternity Pay tables are now available within SBS Budgets. Instructions on applying the National Insurance and Maternity Pay tables can be found on your dashboard.
Please note: SBS Budgets caters for NI calculations across employees who are under 21. It also accurately calculates NI contributions where an employee holds multiple contracts. If you are currently using a Maternity Table with no rebate, please ensure any Budget Entries are removed.
For the temporary increase to scale 1 and 2 of the NJC Support scales, we recommend that two allowances are created with the difference between salary points one and two, and the value starting from April 2022. These can then be added the staff salary details accordingly. More details can be found on the SBS Budgets Dashboard.
If you have any queries, please contact the support desk on sbsonline@schoolbusinessservices.co.uk or 0345 222 1551 Option 8. Thank you
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