A leading Loughton accountancy firm has cautioned businesses about the dangers of not completing their payroll accurately.
Haslers Chartered Accounts has issued the warning as employers across the UK grapple to deal with major changes to workplace pensions, which came into effect last month.
The minimum contribution for employers and employees is increasing, with the employer contribution of one per cent of pay doubling to two per cent. Meanwhile, employee contributions triple from one per cent to three per cent.
Jon O’Shea, Chairman at Haslers, said: “Payroll is not an area where employers can afford to let things slip. Failure to pay the National Minimum Wage (NMW), National Living Wage (NLW) or make the correct level of contributions to workplace pensions all attract substantial penalties.
“Previously this may have meant a fine, but HM Revenue & Customs will now frequently name and shame those found not to be paying NMW or NLW.”
He said that employers must also consider the impact of reporting the correct deductions for Income Tax, National Insurance, Student Loan contributions and items such as season ticket loan repayments.
“Payroll often creates a stressful situation for company owners and managers,” said Jon.
“Outsourcing payroll offers businesses wide-ranging benefits, freeing up time and resources that can be invested in growing the business.”
Businesses need to look at how effectively they are managing their payroll and how much time it is taking up and weigh it up against the cost of using outside help, according to Jon.