Payroll Top Tips

Posted on February 16, 2017 - Advice

Legislation changes are making payroll increasingly complicated, costly and time consuming. Here are five common pitfalls:

  1. Employers must account for overtime and commission when calculating holiday pay. In instances where hours and earnings vary, which is common place in industries including manufacturing and sales, holiday pay should be based on an average of actual earnings over 12 weeks
  2. The National Minimum Wage and National Living Wage are broadly age-based, so make sure you have details of employees’ birthdays and ages, and amend pay accordingly
  3. Employees that leave the business may be entitled to be paid for any unused holidays or need to pay back any they’ve taken but haven’t yet accrued. A business’ contract of employment may also allow it to pay employees without having them work their notice, but remember to pay for any added benefits they would have received had they remained in post until their employment ceased
  4. Every employee must be recorded on the payroll including casual or low paid staff
  5. Many companies tackling auto-enrolment alone have found it more difficult to implement than expected, including larger firms with more resource and expertise. To avoid the potential minefield and penalties for non-compliance, we help businesses to prepare well in advance of their staging date and decide the right pension scheme for them