While the end of the tax year may appear to be in the distant future, year-end payroll mistakes are among the most common yet avoidable compliance blunders.
Anything from incorrect employee data to missed submissions, small errors can snowball into larger delays and potential HMRC penalties.
Missing HMRC notices and deadlines
As the world of payroll is ever-evolving, businesses need to stay agile to keep up with HMRC updates throughout the year.
For example, missing tax codes, student loan updates or changes to statutory pay can cause payroll errors, particularly for businesses relying on manual calculations.
Likewise, if you miss the deadline for the last Full Payment Submission (FPS) of the tax year, there can be mismatches in HMRC’s records and incorrect tax codes.
Hiring a payroll specialist can help your records remain accurate, which can be especially useful for companies with a frequently rotating workforce or seasonal staff.
Incorrect statutory pay calculations
As Statutory Sick Pay (SSP), Maternity Pay, Paternity Pay and Neo-natal Pay all have unique rules and calculations, mistakes can arise when businesses have outdated payroll.
At the year-end, employers should ensure their statutory payment regimes are accurate and prepared for the future tax year.
Not only can accurate calculations ensure compliance, but they also mitigate underpayments and overpayments that can be laborious to correct down the line.
Procrastinating payroll
As smaller businesses have fewer resources, payroll can fall by the wayside against other competing priorities.
This can lead to late RTI submissions, lost employee hours or missed pension contributions, which could be avoided by not rushing submissions.
Resolving late payroll errors and calculating back-pay can take up a lot of administrative time, which could be best spent elsewhere.
Hiring an accountant can help ensure payroll is handled throughout each pay period, avoiding last-minute panics.
Speak to an accountant
Our accountants can ease the pressure by keeping payroll up to date throughout the entire year.
We can calculate wages, net pay, overtime, bonuses and deductions for every pay cycle, preventing costly errors and frantic scrambles.
Struggling to keep on top of your payroll? Speak to our accountants for guidance.
