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)

Businesses using the global accounting platform Xero as their accounting system, can now benefit from a two-way interface with the cloud payroll application, Offshore Payroll.

Jeralie Pallot, director of Offshore Payroll, commented on the news “ We are delighted that Offshore Payroll has been accepted as a member of the Xero family; this brings exciting benefits to businesses operating in unique offshore environments. Our integration with Xero will improve accuracy and offer significant time savings by further automating the payroll process; allowing businesses to focus on other essential processes and achieving better outcomes.

Since the launch of the cloud based Offshore Payroll, our emphasis has always been on ease of use, efficiency, and automation of the payroll process for our users, which is what makes this software such a popular choice.  Becoming a certified partner of Xero is another step forward in the ongoing development of our application.

The Xero certification caps off an exciting 12 months of growth for Offshore Payroll, which is now used by more than 800 organisations and provides payslips for more than 11,000 employees across the Channel Islands and Isle of Man.

To learn more about how Offshore Payroll can help your business click here.

Revenue Jersey is reminding employers – including building contractors – to prepare for changes to the way they submit their returns of employees’ tax deductions, taxable benefits, contributions and manpower.

Under the current system employers submit their tax, social security, and manpower information on different returns.

From January 2022, employers will submit a Combined Employer Return (CER) every month, which will include tax, social security contributions and manpower all on the same return.

The deadline for the first return under the new system is 15 February 2022. 

To complete the CER, employers who use their own payroll software will need to make changes to their systems. Employers who use the online employer returns form will be redirected to a new form when they submit their January 2022 return.

Submissions will need to include the correct social security numbers and tax identification numbers for each of their employees, to be accepted. Ahead of the change, employers will need to ensure all their records are correct and up to date.

Comptroller of Revenue, Richard Summersgill, said: “This initiative will make life easier for employers, enabling them to tell Government about a number of employee-related matters just once. It is the latest step in the Government’s plans to collect revenues more efficiently by centralising services and systems where it is appropriate to do so.”

“We’re committed to achieving this by modernising our legislation, providing easier access to services online, ensuring all customers can understand and meet their obligations while reducing costs.”

“The new return will make the submission process easier for employers but it’s important that employers are sufficiently prepared by having the correct information for their employees. We have been updating employers for some time and there is detailed information and advice on how to prepare for the changes on a dedicated webpage.”

More information about changes is available via the Government of Jersey website: www.gov.je/CombinedEmployerReturn

Payroll suppliers and employers have received information about the changes to give them enough time to update their systems and software.

Employers can also request IT specifications for their payroll provider, or subscribe to regular email updates by emailing: cer@gov.je

Source: Government of Jersey News Release.