Payroll compliance update
Employers in the UK with a headcount of more than 250 people on April 5th must publish and report specific figures about their gender pay gap.
Mandatory gender pay gap reporting
From this year, organisations in the private or charitable sectors that have a headcount of more than 250 employees must publish and report specific figures about their gender pay gap.
The gender pay gap is the difference between the average earnings of men and women, expressed relative to men’s earnings. For example, ‘men earn 15% more than women per hour’.
The figures – using data for the year to April 5th – must be published and reported by April 4th the following year.
Employers must both:
- publish their gender pay gap data and a written statement on their public-facing website (view the specific data that employers must publish from GOV.UK here)
- report their data to government online – this service will be available on GOV.UK in spring 2017.
Organisation can also publish and report voluntarily if their headcount is fewer than 250 employees.
Your organisation will be a ‘relevant employer’ and must publish and report if it has a headcount of more than 250 employees who are based in England, Scotland or Wales.
The legal entity that is the ‘relevant employer’ (for example, the private limited company or public limited company) must register with and report to the Gender pay gap reporting service. This online service will be available on GOV.UK in the spring.
If your organisation is a ‘relevant employer’ and runs multiple payrolls (for example payrolls for different departments or business functions), you must merge relevant data from all your payrolls and report one set of figures for your organisation.
Organisations that are part of a group must report individually if they are ‘relevant employers’.
Additionally, corporate groups can voluntarily report combined figures for the entire group.
Who counts as an ‘employee’
The definition of ‘employee’ for gender pay gap reporting includes:
- people who have a contract of employment with your organisation
- workers and agency workers (those with a contract to do work or provide services)
- some self-employed people (where they must personally perform the work)
When to count agency workers and self-employed people in your organisation
If your organisation uses agency workers or service companies, they count as part of the headcount of the agency or service company that provides them – not your organisation.
You must include self-employed people in your organisation’s calculations if they must personally perform work for you and you have the data available. For example where a project initiation document exists and/or a schedule of fees is in place.
Part-time workers and job-sharing
You must count each part-time worker as one employee for gender pay gap reporting purposes.
If you use job-share arrangements, every employee within a job-share counts as one employee. So, if 2 people job-share, they count as 2 employees for gender pay gap reporting purposes.
When employees have more than one job with your organisation, you can either choose to count them according to how many employment contracts they have or as one employee. Your organisation can choose the most appropriate approach – but it will help the accuracy of your figures if you consistently apply what you decide.
Overseas workers and international jobs
As a general rule, you must count an employee based overseas if they have an employment contract subject to English, Scottish or Welsh law.
Partners in partnerships
You don’t have to include partners in traditional partnerships and limited liability partnerships in your calculations. This is because partners take a share of the organisation’s profits, which is not directly comparable with employees’ pay.
Data you must publish and report
You must publish on your organisation’s public-facing website and report to government your organisation’s:
- mean gender pay gap in hourly pay
- median gender pay gap in hourly pay
- mean bonus gender pay gap
- median bonus gender pay gap
- proportion of males and females receiving a bonus payment
- proportion of males and females in each pay quartile
You’ll need to:
- gather specific information from your payroll (for specific details required visit GOV.UK here)
- use this information to make your calculations (for more information on how to make your calculations visit GOV.UK here)
You must also publish a written statement on your organisation’s website which confirms the accuracy of your calculations, authorised by an appropriate senior person (such as a company director). To view what employers must publish visit GOV.UK here.
You are required by law to publish and report your organisation’s figures if you’re a ‘relevant employer’. The Equality and Human Rights Commission can enforce any failure to comply with the regulations.
PaycheckPlus – Payroll Outsource Provider
Payroll compliance requirements change regularly and it’s imperative that companies stay up to date and be compliant with the legislations in the countries that their staff are employed. Companies can incur severe penalties if they are not compliant but being compliant can be difficult for companies and staff that don’t have payroll as a core focus. However, here at PaycheckPlus we specialise in payroll and provide payroll solutions tailored to the specific needs of businesses. We provide managed payroll, auditing, consultancy, payroll workshops and reporting along with many other services that ensure payroll compliance. We also provide a cover service for payroll staff which gives companies (and payroll staff) peace of mind that their employees will still get paid even if their payroll team becomes ill or goes on leave.
To ensure payroll accuracy and for expert support contact PaycheckPlus today.
For information and assistance on processing payroll for employees, call +353 (0)41 98 92 100 or Request a Callback from our Payroll Specialists today.
PaycheckPlus – Payroll Excellence