Staying on top of payroll can be a huge task for all businesses of different sizes – which is why we advise you seek specialist advice to ensure everything is correct and running smoothly.
Tax & National Insurance Contributions legislation are always changing, as are the National Living Wage (NLW) and auto-enrolment pensions contributions.
These changes need to be monitored and adhered to when administering payroll as failure to pay the NMW (National Minimum Wage) or NLW, or make the correct pensions contributions can result in penalties.
Am I up-to-date?
As of April 2018 there were some important updates to payroll that employers should be aware of and which should already be in effect in their payroll.
The auto-enrolment pension contributions have increased, employer contribution is now 2% – previously 1% – and employee contribution is now 3% – previously 1%.
Also, the NLW for people over the age of 25 has been increased from £7.50 to £7.83 as of 1 April 2018, while the NMW, for people aged 21-24 has also increased from £7.05 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 result in substantial penalties and could potentially end up with your company being publicly named and shamed. Because of this it is vital to ensure that you are up to date with your payroll responsibilities and adhere to the latest rates and rules at all times.
Payroll is a time-consuming task and can be stressful for business owners and managers. Businesses are advised to consider the benefits of outsourcing their payroll to specialists.
Accounts Navigator are happy to assist in the completion of your payroll so you can spend more time working on your business instead of working in it. Contact us today for more information