2022 sees some significant changes to how employers need to manage their staff payrolls and tax information in Jersey. It’s essential that systems are updated and business owners are aware of what needs to be done. With the start of the new year, it’s also a good time for organisations to review how they are managing payroll and look at digital solutions in order to save time and provide convenience.
What you need to know
What’s changing in 2022?
Changes to Tax Identification Numbers
To bring Jersey in line with international tax practice, 10-digit TINs have been introduced and will identify individuals and employers for tax purposes. These will be on all future correspondence from Revenue Jersey and should be used for correspondence and payments.
Everyone should have received their new ITIS notification for 1st January 2022. If you have not received it then you will automatically be switched to the default 22% rate. To avoid this, it is advisable to chase up Revenue Jersey and request for your ITIS rate be sent immediately.
New Combined employer reporting
The new Combined Employer Return will allow filing of tax, social security, manpower and benefits in kind, all at the same time. The changes are specifically to social security and manpower returns.
January 2022 returns are due by 15th February 2022. From January, old formats will not be accepted.
What you need to do
What do Employers need to do?
- Check with your payroll provider that the payroll system has been updated to allow this change and for returns to be submitted together.
- Send your employer TIN to your payroll provider or input this onto your payroll system.
- Request your employee’s send their new tax effective rate notice with their TINs to the payroll department or provider, for accurate submission of Employer Return to Revenue Jersey.
- If you submit returns online via Employer Web services: https://empret.jsytax.je/EMPWEB/Default.aspx , you will now need to send in all contributions and returns at the same time.
How do you make processing the Payroll easier?
If you are still trying to manage your staff payroll manually via spreadsheets and other records, then you are not only providing yourself with a monthly headache, but also costing yourself time which you could be putting into your business. In addition, if you have a digital payroll system, you will find it far easier to make informed decisions by running reports on the payroll history, as well as managing the processing.
How would a Payroll software work?
You can migrate to a digital system by importing your current data so that all the records are in one safe, secure place. If an update to payroll software or process is needed, such as the coming tax and employer reporting changes, this can be done quickly and efficiently through automatic changes and updates in the system. Many payroll systems can integrate with other HR information systems, providing a holistic people management platform that ensures consistency and therefore accuracy of data and avoids duplicate data entry and the risk of error.
What are the benefits of Payroll software?
Apart from saving you time and giving you much needed data, there are several benefits to a payroll software:
- They have functionality to assist with calculations for you, including any pro-rata holiday pay, bonuses, and expenses, etc.
- It ensures accuracy. As long as you have input the data correctly, you know that the calculations will be correct as there’s no risk of a slipped finger on the calculator.
- It’s secure. You don’t have paper files or run the risk of sensitive information being available to other staff. It can be securely hosted and only the necessary personnel given access.
- It will produce and send out payslips from the system, which are a legal requirement to provide in Jersey.
- You can review history quickly to understand the data for an individual at one glance.
How can HR Now help with payroll software?
HR Now can recommend various payroll platforms, depending on your circumstances. As Jersey’s leading outsourced HR provider, we are experts in understanding what is required and how that can be implemented in the real world. We can support you as much, or as little as you need in Jersey and across other jurisdictions. This means we can simply get you set up and running and you take it from there, or we can support you with completing payroll changes calculations and performing checks; or we could run the whole payroll experience for you using our payroll software – and simply send the payment amounts to you. Critically, we use our experience and expertise to check everything for you and ensure you are following best practice and legal requirements.
If you are managing your staff manually, you can free up time to run your business and make more informed decisions, by using an HR management software. For further information click here.
Ditch the spreadsheets and free up time for what’s important.