Payroll and HR in Jersey

Local Information

Local Time (LIVE):10:22 PM
Local Currency:$1 = £0.78
Business Language(s):English
Tax Year Dates:1st January – 31st December

 

The largest of the Channel Islands, Jersey is a self-governing dependency of the UK, located in the English Channel around 14 miles off the coast of France. At just shy of 120km², Jersey’s small size has far from inhibited the growth of international business on the island. There are direct flights from the UK which take less than an hour, making connection to London quick and simple.

Because Jersey is self-governing, there are local laws to contend with pertaining to all aspects of day to day life; payroll and HR being no exception. Any business owners thinking about expanding to this part of the world need to make sure they are well aware of the employment laws in Jersey, so they can remain thoroughly complaint.

Avoid ambiguity in this area by contacting FMP Global. Our experts have extensive knowledge regarding HR and payroll all over the world, and can reliably guide you through everything you need to know about employment in Jersey.

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Payroll in Jersey

What tax considerations are there?

 

Personal Income Tax (PIT)

In Jersey, employees’ income tax is capped at a maximum of 20%, plus a 1% Long Term Care (LTC) contribution. At the time of writing, the tax exemption rate is £15,400. Anyone earning less than this does not need to pay tax in Jersey.

There is also a marginal tax calculation scheme which protects people on lower salaries. To work this out, you must detract the exemption rate from your salary, for example £70,000 – £15,400 = £54,600. Then find 26% of this figure, which in this case is £14,196. You will either pay this amount in tax, or 20% of your original salary (£14,000 in this instance) – whichever is lower.

Tax is paid in instalments from your weekly or monthly salary, using Revenue Jersey’s Income Tax Instalment System (ITIS).

You are considered a resident in Jersey, and therefore liable to pay tax if you have been there for more than 183 days in one calendar year. In this case, an income tax return must be submitted for the period spent in Jersey.

Corporate Income Tax (CIT)

In 2008 all taxes for corporations conducting business in Jersey was eliminated. This is with exception to the following sectors;

  • Financial Services – 10%
  • Development Projects – 20%
  • Companies receiving rentals – 20% (after expenditure)
  • Utilities – 20%

Even companies that are exempt from tax must submit a tax return to the Jersey tax authority. The annual deadline for tax returns is 6pm on 31st December, and there is a late filing fee of £250.

Employer Must-Dos

The following must be provided to the relevant authorities in Jersey

  • Annual Tax Return before 6pm on 31st December
  • Details of all new employees to the tax office
  • Bi-annual manpower return forms (deadlines: 31st January and 31st July)

HR in Jersey

What are the regular working hours in Jersey?

Office hours in Jersey are usually 9am to 5pm or 5.30pm, with a Saturday and Sunday weekend break. Having said this, in Jersey there is no limit on the number of hours that can be worked in a day. Nor is there law surrounding the amount of time an employee can take for a break. All that is asked is that health and safety considerations are made; for instance, asking a staff member to work from 9am until 5pm without a break is likely to be considered unreasonable.

Vacation, maternity and sickness

Employees in Jersey are entitled to two weeks of annual leave every year, plus paid bank holidays. The year for holiday to be taken can be defined by the employer, or if this is not specified generally the year would start on the employee’s first day, and end on the subsequent anniversary. For example if they started work on the 23rd October, their holiday year would be 23rd October – 22nd October.

There is no right to maternity leave as such, but individual companies will specify their own terms in the employment contract. While expecting or new mothers are not working, they will receive a weekly maternity benefit.

After three days off sick, employees may be entitled to short or long term incapacity allowance.

Termination

Unless the employee is on a fixed-term contract, and as long as they have worked for eight hours plus in any week, the employer must provide an employee at least one week’s notice of dismissal. The amount of notice required changes with the length of service, up to the value of 12 weeks for those who have worked for 12 years plus.

Employees must provide a minimum of two week’s notice if they have worked for five years or less at a company and four week’s notice for any longer.

These notice periods are the minimum in Jersey; employment contracts can specify longer notice periods.

Our guide to international payroll

If you have more questions about worldwide employment law, download our helpful guide. We explore aspects from payslips and deductions to maternity pay considerations.

Download Our Guide

FMP’s Jersey Payroll and HR Solutions

Any business owners who are looking to expand to Saint Helier, or other areas of Jersey, need to guarantee compliance with local HR and payroll legislation. This can be quite a drawback when you need to focus your efforts on other areas such as sales and marketing, so consider getting in touch with the experts. Our team here at FMP Global are well aware of the complexities of international employment law, and are proficient in navigating this side of legislation. Some of our services are;

  • Employment contracts
  • HR consultancy
  • Payroll processing
  • Processing tax and social security deductions
  • Managing payslips
  • Tax reporting
  • Benefits administration
  • Pension administration
  • Accounting services
  • Translation services
  • Year End Tax Reconciliation
  • Multiple currency payroll

FMP Global can guide you through Jersey employment law

Let our experts take one stressful aspect of your expansions plans, off your hands. We can provide you with everything you need to stay compliant with HR and payroll legislation in Jersey.

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