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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Meet our Team – Luke Smith
Luke is a Chartered Accountant who began his journey with the Big-4 firm KPMG before taking the lead in developing Purpose, an award-winning accountancy business based in Jersey. Luke is now Managing Director of Offshore Payroll and a Partner in a successful, boutique Private Equity firm that has created a portfolio of local high performing, synergistic, professional services businesses across industry sectors. With over 24 years’ experience in accounting, finance, and business evolution Luke acts as an advisor to the boards of over 30 owner-managed businesses in Jersey with turnovers of £1M
In 2019, Luke spotted a unique opportunity and led the acquisition of Offshore Payroll Limited, determined to assemble a dynamic team that could take the company’s growth and technological capabilities to the next level. His passion for innovation drives him to continuously explore new ways to leverage technology, to streamline and add value to businesses.
Why cloud-based payroll protects your business resilience
Business preparedness, emergency and continuity are all subjects that most business owners have discussed during their annual strategy days. Fortunately, most have never had to implement these plans – until March 2020.
We all know that COVID-19 pandemic has changed the world of work forever. Homeworking, changes to contracts, government benefits and employee furloughs have all had to be considered and managed.
Perhaps understandably, limitations to our existing HR and payroll have been revealed. Many organisations had to review how they manage their payroll, for the well-being of their teams and their businesses.
Payroll has been tested like never before
Old, complicated, IT systems and ineffective, manual processes have been unable to cope with the ‘new normal’. Inaccurate data and a lack of analytics and visibility have hampered businesses’ ability to make fast decisions at the most critical time.
With often whole workforces based at home, companies have had to urgently manage both the logistical and emotional challenges of keeping teams operational and happy. These issues don’t even take into consideration the potential of higher levels of sickness, leaving many businesses’ shorthanded, at the same time as possibly being over-staffed – it’s often one or the other, but rarely both.
Through all of this, people have still needed to be paid. Often with new, different terms than before as organisations rapidly restructured to maintain resilience.
Payroll management needs to be cloud-based
It has become apparent, very quickly, that the organisations who were able to adapt best to these new challenges were those who had embraced cloud-based working. Their teams were able to work from home more efficiently, and the administrative functions of their business, such as HR and payroll, were able to continue seamlessly.
Businesses that had traditional, in-house infrastructure, hosting internally, have struggled, at a time when certainty of income is all important. Having on-premise systems, tied to physical infrastructure and fixed locations, can create security, scalability and in the event of a pandemic even possibly health risks.
Payroll must change forever – like everything else
The COVID-19 pandemic has forced rapid change to the way we work, collaborate and manage our teams. It has also quickly proven that people can work well from home. Even when the health crisis ends, home working won’t, which means that innovations to our HR policies and processes, including payroll will continue to be a worthwhile and valuable investment.
If you would like to discuss how Offshore Payroll could help your business, please email info@offshorepayroll.com to arrange a chat.
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.
“I love being able to press a button and e-mail all the payslips”
Also the Government one return is made so easy again, just submit and it is all completed, If I have any queries or questions the Support Team always sort out any issues and provide solutions.
I find because the product is cloud based if I think of something which needs updating after I have finished work, I can just use my mobile phone or I pad at home so it is very accessible.
Offshore Payroll is very easy to use, it saves me considerable time and has streamlined our payroll process.
Angela Sheehan – Accounts Officer
