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 NMW or NLW, or make the correct level of contributions to workplace pensions, can attract substantial penalties.
Am I up-to-date?
A series of important changes took effect at the beginning of April which employers should be aware of – and should have already updated their payroll to reflect.
From 6 April 2018, auto-enrolment pension contributions have increased, meaning that employers should now be contributing two 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 one per cent.
Similarly, the NLW for people aged 25 and over has been increased to £7.83 as of 1 April 2018, while the NMW – which affects workers aged under 25 – has also increased to £7.38.
What do I need to 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. Due to this, it is important to ensure that you are on top of your payroll responsibilities and up-to-date with 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. Due to this, busy businesses are advised to consider the benefits of outsourcing their payroll to external specialists.
Letting qualified accountants such as Haslers help you offers wide-ranging benefits to you and your company – freeing up time and resources that can be invested in growing your business.
Contact our experienced payroll team at Haslers today to find out how we can support your business with payroll management.