Changes to payroll compliance are putting pressure on Northamptonshire employers to improve their payroll accuracy so they avoid penalties.
In recent weeks, the UK government has introduced new National Living Wage and National Minimum Wage rates, made changes to statutory sick pay and launched the Fair Work Agency which will eventually take over the enforcement of the National Minimum Wage.
These changes mean accuracy around payroll compliance – where employees are paid accurately, on time and in line with UK employment and tax legislation – is vital if businesses are to avoid penalties.
One organisation which is guiding Northamptonshire businesses through the changes is Rushden-based award-winning team of accountants, Elsby & Co.
Elsby & Co Portfolio Manager for Payroll, Katie Newman, said: “Complying with the new National Living Wage and National Minimum Wage rates which came into force in April isn’t as straightforward as it sounds. Minimum wage calculations can be affected by certain deductions or expenses borne by workers such as costs for uniforms, tools or equipment, some forms of training and salary sacrifice arrangements. This can sometimes lead to employers making mistakes that result in underpayment issues.
“There was also a big change to statutory sick pay last month. Employees now receive statutory sick pay from their first day of absence – rather than having to wait until the fourth day, regardless of how much they’re paid. Some employees receive statutory sick pay based on 80 per cent of average weekly earnings per week which adds more complexity to the situation. The change is designed to improve fairness for workers, but it’s increased employer costs and administration.”
To support businesses, Elsby & Co offers a secure payroll processing service. It is designed to help businesses keep clear, accurate payroll and holiday pay records at a time when new enforcement powers mean HM Revenue and Customs and regulators are set to be even more proactive.
Katie added: “The pace of change around payroll compliance has increased rapidly this year but businesses don’t have to navigate these changes alone.
“We support businesses, ranging from director-only firms to large organisations, with their payroll requirements. With our help they can benefit from up-to-date advice, avoid penalties or staff issues and free up their time so they can focus on running and growing their businesses.”
Companies which want to find out how Elsby & Co can support them with their payroll can email help@elsbyandco.co.uk or call 0330 053 9189.
