📢 Is Your Payroll Fully Compliant? It’s More Than Just Software! ⚠️

Many businesses believe that payroll compliance is as simple as pressing a button in their software—but in reality, it’s far more complex. Ever-changing legislation, strict HMRC requirements, and legal obligations mean that payroll must be managed with precision and expertise.

Are you confident that your business is fully compliant? Here are some key areas that demand attention:

✅ National Minimum Wage (NMW) Compliance

Mistakes in minimum wage calculations can lead to costly fines and reputational damage. Employers must ensure they’re paying employees correctly, particularly after recent rate increases. Common pitfalls include:

• Salary sacrifice schemes pushing pay below the legal minimum

• Incorrect deductions for uniforms, training, or other costs

• Failing to update pay rates for apprentices and younger workers

  
  

✅ Holiday Pay Legislation

Holiday pay calculations are becoming increasingly complex. With rolled-up holiday pay changes, irregular hours, and variable pay rules, it’s vital to ensure:

• The correct 52-week reference period is used

• Overtime, commission, and bonuses are included in calculations

• Casual and irregular workers receive their full entitlements

  
  

Failing to comply can lead to backdated claims and significant financial liabilities.

✅ Pension & Auto-Enrolment

The Pensions Regulator (TPR) is cracking down on businesses that fail to meet auto-enrolment obligations. Employers must:

• Enrol eligible workers into a workplace pension scheme

• Ensure contributions meet the minimum thresholds

• Submit declaration of compliance and keep records up to date

  
  

Non-compliance can result in hefty fines and penalties.

✅ Real-Time Information (RTI) & PAYE

Timely and accurate payroll submissions are crucial to avoiding HMRC penalties. Employers must:

• Submit Full Payment Submissions (FPS) on time

• Correctly process Tax, National Insurance, and deductions

• Ensure accuracy in employment records to avoid discrepancies

  
  

✅ Off-Payroll Working (IR35) Regulations

If your business engages contractors and freelancers, ensuring IR35 compliance is essential. Incorrect status determinations could mean:

• Unexpected tax liabilities

• Financial penalties for incorrect classification

• Increased HMRC scrutiny and audits

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❌ The Risks of Payroll Non-Compliance

Payroll errors can lead to:

• Fines and penalties from HMRC and The Pensions Regulator

• Employment tribunal claims for underpayment or misclassification

• Reputational damage and loss of employee trust

  
  

🔍 How TCW Can Help

At TCW Accountancy and Training Solutions, we provide expert payroll support to keep your business fully compliant. Our services include:

✔️ Payroll compliance checks and audits

✔️ Legislation updates and best practice guidance

✔️ Payroll outsourcing to ensure accurate processing

✔️ Training for in-house payroll teams

📩 Get in touch today for a consultation and let’s ensure your payroll is fully compliant—before it becomes a costly problem!