Keeping your business on top of its payroll obligations at all times can be difficult, as the legislation governing the likes of 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 long updated their payroll to reflect.
As of 6 April 2018, auto-enrolment pension contributions have increased, meaning that employers should now be contributing at least 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 just one per cent. Similarly, the NLW for people aged 25 and over has increased to £7.83 as of 1 April 2018, while the NMW – which affects workers aged under 25 – has also increased slightly.
What do I have to do?
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. This is because failures to pay the NLW or make the correct level of contributions to workplace pensions can attract substantial penalties – and can also lead to your company being publicly named and shamed.
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 seek specialist advice in this area.
At Lamont Pridmore, we understand that as an employer, payroll can be difficult to keep on top of – which is why we offer a fast and cost-effective payroll bureau service, leaving our clients free to concentrate on running their businesses.
To find out more about our payroll services, get in touch with us today.