COS Bookkeeping’s Post

A Guide to Inward investment and the role of non-domiciled individuals 💸 From company cars to private medical insurance and travel expenses to childcare vouchers, Benefits in Kind (BIK) serve as a great way to remunerate your employees. However, just because they are not part of the direct monetary salary that an employee receive, doesn’t mean they aren’t subject to taxes and other reporting requirements. The initial challenge for any employer is to accurately identify which perks provided to employees qualify as BIK and are therefore subject to tax via the payroll system. The criteria for this can vary, with some benefits being taxable under certain conditions and exempt under others. Click on the link below to download your copy: https://lnkd.in/eu2BkFRB Please contact us and we will be happy to help you with any questions you may have on these topics. 📞01432 276393 📩info@thornewidgery.co.uk https://lnkd.in/eUpX6PFB #investment #taxplanning #businessplanning #accountant #accountancy #accountancyproblems #accountantlife #businesssupportingbusiness #accountingtips #accountingfirms #accountingservices #herefordbusiness #ludlowbusiness #shrewsburybusiness #taxexperts #taxadvice #benefitinkind

Below are the implications for the newly rolled out SHIF for Employers : 🔥 Increased contribution rates under SHIF may pose challenges for employers, potentially raising operational costs compared to the former NHIF. 🔥Companies will also need to navigate new compliance requirements, including adjusting reporting and contribution systems, which could result in administrative expenses, payroll modifications, and potential penalties for non-compliance. 🔥 Moreover, businesses may have to reevaluate budgets to cover elevated healthcare expenses for employees, particularly if contribution rates are tied to earnings. #Employers #HealthcareCosts #Compliance #Budgeting

Our #TipTuesday is a reminder that you need to report employee benefits on form P11d by 6th July. P11d forms for reporting expenses and benefits in kind provided to employees and directors in 2023/24 need to be submitted by 6 July 2024. Note that paper forms are no longer acceptable; the return must be made online using PAYE Online for employers or commercial software.   Remember that reimbursed expenses no longer need to be reported where they are incurred wholly, exclusively and necessarily in the performance of the employee's duties. Dispensations from reporting are no longer required, although HMRC would expect internal controls to be in place to ensure that the expenses qualify. Note also that trivial benefits of no more than £50 provided to employees need not be reported. This typically covers non-cash gifts to employees at Christmas and on their birthdays and can include gifts of food and alcohol. Again, the employer needs to keep a record of the benefit provided and the justification. It should not be provided as a reward for past or future service. If you have any questions please drop us a message.

SOME POINTS TO REMEMBER REGARDING GRATUITY.  1. Gratuity is payable on completion of 12 months of service after first day of employment. It is not related to calendar year (January to December) or fiscal or financial year (July to June) or any other arbitrary period. 2. Gratuity is payable for more more than six months of employment. If the period of employment is less than 6 months, no gratuity is payable.  3. Employer is required to provide only one benefit: Gratuity or Provident Fund or Pension Fund. However, under a collective agreement/memorandum of understanding, the employer may provide multiple benefits or the rate of gratuity may be raised from 30 days' wages to 40-45 days' wages.  4. Unlike Bonus or workers' participation in profits, gratuity has no connection with the financial position of the employer. It must be paid to an eligible worker at the end of service, whether by superannuation or resignation or death or termination (for any reason other than misconduct).  

#HRNews Eligible employers may apply for subsidies after settling severance payments and long service payments to their employees under SSA after the abolition of the offsetting arrangement on 1 May 2025. https://lnkd.in/gZqf6-dc

INFORMATION ABOUT PF,GPF.....PART-II THE QUALIFYING CONDITIONS FOR A WORKER TO EARN GRATUITY: 1. Gratuity is payable on completion of 12 months of service after first day of employment. It is not related to calendar year (January to December) or fiscal or financial year (July to June) or any other arbitrary period. 2. Gratuity is payable for more more than six months of employment. If the period of employment is less than 6 months, no gratuity is payable. 3. As stated above, employer is required to provide only one benefit: Gratuity or Provident Fund or Pension Fund. However, under a collective agreement/memorandum of understanding, the employer may provide multiple benefits or the rate of gratuity may be raised from 30 days' wages to 40-45 days' wages. 4. Unlike Bonus or workers' participation in profits, gratuity has no connection with the financial position of the employer. It must be paid to an eligible worker at the end of service, whether by superannuation or resignation or death or termination (for any reason other than misconduct).

We told Bloomberg that a hike in National Insurance Contributions (NICs) for employers would be felt hardest by the UK's small employers. The move would dampen growth, increase the dip in jobs in UK small businesses, and put pressure on pay and pension contributions ⬇️ 🔗 https://lnkd.in/egBGEcKm #NICs #NationalInsurance #Employers #SmallBusinesses

On September 6th, the IRS announced that the ACA affordability percentage will increase from 8.39% (2024) to 9.02% (2025) of the employee’s household income. See: Revenue Procedure 2024-35 Remember that under the Affordable Care Act (ACA), applicable large employers must offer minimum essential coverage that meets “minimum value” and is considered “affordable.” In 2025, an offer of coverage will be considered affordable as long as the employee’s contribution towards the lowest cost, self-only coverage does not exceed the 9.02% of an employee’s household income. If an employer fails to offer affordable coverage, they may be subject to penalties under section 4980(H). Affordability is generally determined using one of three safe harbors available to employers: Federal Poverty Line Safe Harbor – An employer satisfies this safe harbor if the employee’s required contribution for the lowest-cost, self-only coverage that provides minimum value does not exceed the 9.02% of the federal poverty line. i. Employers offering a plan option in 2025 that provides minimum value and costs employees no more than $113.20 per month for employee-only coverage will satisfy this safe harbor. Rate of Pay Safe Harbor – An employer will satisfy this safe harbor if the employee monthly contribution does not exceed 9.02% of monthly wages. i. For hourly employees, monthly wages are determined by multiplying an employee’s hourly rate by 130. ii. For salaried employees, compare against the employee’s monthly salary. W2 Safe Harbor – An employer will satisfy this safe harbor if the lowest-cost, self-only coverage providing minimum value does not exceed 9.02% of the employee’s Form W-2 wages from the employer for the calendar year. The 9.02% affordability threshold represents an increase from last year’s 8.39%. As a result, applicable large employers (those subject to the employer mandate) will have a bit more flexibility when determining the amount of employee contributions toward the cost of the lowest-cost, self-only coverage option available.

Taxing employers who create jobs has always been sort of dumb. But if we are going to have a payroll tax, singling out private GP businesses for an exemption and not other private health businesses like pharmacies, dentists and allied health providers, does not make any sense. Back in 1987 the Clth created Medicare and agreed to pay the full cost of primary health care. But in reality the States have been forced to subside Medicare by foregoing payroll tax revenue from general practices (but not other health service providers). This might have made sense in the days when GP practices were small family businesses, but general practice today are increasingly multi-billion corporate enterprises with an increasing level of foreign share ownership. The logical solution to this problem is for the Clth to do what it promised in 1987 and pay the full cost of primary health care by increasing Medicare rebates by an appropriate amount, rather than forcing the States to forego payroll tax revenue. The fact is that every dollar the States are forced to pay to subsidise Medicare is a dollar less for schools, the arts and infrastructure. And it means more money going into the pockets of large health care corporations and less into addressing the social determinants of health in communities. Around 30% of Australians have no access to adequate and timely health care. We talk too much about ‘people-centred care’ - it is time to put the money where our mouth is. https://lnkd.in/gWHNPfyP #generalpractice #generalpractitioner #ruralhealth #aboriginalhealth Chris Minns Chris Picton Daniel Mookhey

📢 Important Update: IRS Announcement on ACA 📢 On September 6, 2024, the IRS released Revenue Procedure 2024-35, outlining critical changes to the Affordable Care Act (ACA) regulations. This new guidance impacts employer healthcare reporting and compliance requirements. Stay informed to ensure your business remains compliant! 🔍 Learn more about these updates and how they might affect your business: https://hubs.la/Q02TZL1l0 #IRSUpdate #AffordableCareAct #ACACompliance #HealthcareRegulations #BusinessCompliance #EmployerResponsibilities #IRSNews #HRUpdates #Payroll