The latest changes are to take effect as from this week (05/08/2022). This means the new rates will apply from Payroll Week 6 or Month 2 of the current tax year.
For the employee’s weekly contribution, the minimum contribution of £12.10 has increased to £12.50 and maximum is up from £50 to £50.50. The employer’s weekly contribution is now at a slightly reduced rate of 19%, but the minimum is up from £28 to £28.50. Maximum has increased from £50 to £50.50.
The new Social Insurance table detailing all the rates and calculations for the different types of payroll (weekly, monthly, annual) are available from this link. The new Social Insurance table and the updated official tax tables will be available on the official Government website in the next few weeks at this location.
For those running Payroll, please make sure you update your EasyPay system to V21.27. This version was released on 07/08/22.
Practical Considerations
For weekly and monthly payrolls there is nothing else to do. EasyPay has all the social insurance rules for each year built into it. It will automatically apply the correct rate that applies to the payslip.
Only if you are running a Fortnightly or Four-Weekly payroll, then unfortunately there is a practical implication. You will need to manually adjust the social insurance for Fortnightly period 3 or Four Weekly period 2, respectively. This is because the change occurs during the fortnightly or four weekly period. The required manual adjustment can made in EasyPay on the Social Insurance tab of the payslip.
For the Fortnightly payroll, the first week of period 3 is at the old SI rate. The second week is at the new rate. Similarly, for the Four-Weekly payroll, the first week of period 2 is at the old SI rate and the remaining weeks are at the new rate.
As a result of these changes, the electronic P8 submission file format has changed slightly. EasyPay will be updated and tested for these changes. This will be carried out in the next few months ahead of the next P8 submission process in 2023.