Keeping on top of payroll poses a huge challenge for businesses of all shapes and sizes – which is why it is wise to seek specialist advice to ensure everything is running smoothly.
The legislation governing tax and National Insurance Contributions (NICs) is forever changing, as are the rules relating to the National Living Wage (NLW) and auto-enrolment pensions.
Changes such as these need to be carefully followed and taken into account when administering your payroll – particularly as failures to pay the National Minimum Wage (NMW) or NLW, or make the correct level of contributions to workplace pensions, can attract substantial penalties.
Am I up-to-speed?
A series of important changes took effect recently:
Auto-enrolment (workplace) pension contributions increased on 6 April, meaning that employers should now be contributing three per cent of pay into the pensions of any members of staff enrolled in a workplace pension scheme, as opposed to the previous contribution level of two per cent.
Similarly, the NLW for people aged 25 and over increased to £8.21 as of 1 April 2019, while the NMW – which affects workers aged under 25 – also increased.
What should I do?
Failure to pay the NLW or make the correct level of contributions to workplace pensions will attract substantial penalties – and can also lead to your company being publicly named and shamed.
It is important to ensure that you are on top of your payroll responsibilities and up-to-date with all the latest rates and rules at all times.
Payroll is a time-consuming task and a considerable source of stress for business owners and managers.
If you’re struggling to stay on top of your payroll, our team can help. We have a dedicated team of specialists in our payroll department geared up to providing a timely, accurate and flexible service, tailored to suit your needs.
Few other options are as commercial sensible as outsourcing your payroll to Thomas Coombs. Get in touch today to find out how our dedicated payroll department will save you time and money, keep you compliant and help you stay in control of your business.