There are some important changes for Jersey and Guernsey will come into effect from the 1st of January 2023, luckily for Offshore Payroll clients we’ve had these in place since early December and our databases have been automatically updated.

Jersey will see an end to the temporary reduction in Social Security contributions and a percentage rise from 4% to 6% for employee contributions from January 1st 2023.

There have also been annual updates to Guernsey and Jersey tax and social security thresholds, more details of these annual changes can be found by using the following links:

Click here for more information on 2023 Jersey Tax rates, allowances and reliefs

Click here for more information on 2023 Guernsey Tax rates, allowances and reliefs

If you’re considering a change in 2023 and are looking for a new Payroll software provider, then reach out and speak with a member of the team by using this link.

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.