Award-winning accountancy firm Grunberg & Co is calling on businesses to review their payroll procedures in light of recent changes to the rules.
In the last few months, businesses have had to deal with changes to the National Minimum and Living Wage, contributions to workplace pensions and new rules relating to employee wage slips.
The London-based firm is concerned that this perfect storm of recent amendments to the rules could leave some employers open to investigation by HM Revenue & Customs, which monitors payroll compliance.
The Government has considerably stepped up its efforts in the last few years to crack down on employers who fail to meet the regulations and now regularly publishes a list of employers who have failed to pay the National Minimum and Living Wages, in an attempt to name and shame them.
Those in breach of the rules could also face substantial fines, as well as being required to pay back any amounts owed to staff members.
“The recent change to workplace pensions and minimum wages are just the latest measures of which firms need to be aware”, according to Gedalia Waldman, a Partner at Grunberg & Co.
“Payroll is an area where employers cannot afford to let things slip. Failure to meet your responsibilities can lead to substantial penalties and businesses run the risk of being publicly named and shamed, which could have a significant impact on their reputation.”
Gedalia also reminded employers to make the correct deductions for Income Tax, National Insurance, Student Loan contributions and items such as season ticket loan repayments.
He said: “The payroll process can be time-consuming and a considerable source of stress for business owners, which is why outsourcing payroll functions can offer businesses much more time and resources that can be invested in growing the business.”