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.
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A series of important changes took effect this year:
Auto-enrolment (workplace) pension contributions increased on 6 April, meaning that employers should now be contributing three 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 two per cent.
Similarly, the NLW for people aged 25 and over increased to £8.21 as of 1 April 2019, while the NMW – which affects workers aged under 25 – also increased.
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 – which is why busy businesses are advised to consider the benefits of speaking to Kirk Newsholme to find out how our expert team can help.
Our team can help to ensure that your business is always on top of its payroll no matter what. We can also assist with advice on how to enrol or re-enrol your employees into a workplace pension scheme. For more information, please contact James Scrivener on 0113 204 4227 or James.Scrivener@kirknewsholme.co.uk.
For more information, please contact us today!