Jersey employers are being warned to ensure they are aware of the upcoming changes to staff payrolls and how they file tax.
One of Jersey’s leading HR experts said 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 to save time and provide convenience and accuracy.
What are the 2022 changes?
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.
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 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, you will now need to send in all contributions and returns at the same time.
Becky Hill, CEO, HR Now, said: “Employees need to be aware of this too because 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. For employers, now is the perfect time to consider migrating payroll to a digital system. It will ensure accuracy, save you time, and provide you with useful data to run your business.”
