Changes to national minimum wage could also affect your record keeping
Featured Products Promotional FeaturesPosted by: Dental Design 27th May 2021
The complexity of payroll is often a surprise. As workers, we take it for granted that we’ll be paid the correct amount and on time, so once we see how layered the process is, we find a new appreciation for the people who make it happen.
If you’re a dental practice owner, an efficient payroll is a priority. Over the past year the payroll industry has faced a number of challenges due to the pandemic. If you were, or still are, covering any employee wages through the Coronavirus Job Retention Scheme (CJRS), or furlough, that will spring to mind first.
But there have been other recent changes that could affect your payroll too. The delayed legislation for off-payroll working, known as IR35, finally hitting the private sector for one. Also, at the beginning of April, rules on how long companies have to keep National Minimum Wage (NMW) records changed.
From April, employers now have to keep the records that establish they are renumerating at a rate at least equal to NMW for six years, rather than three years as had previously been the case. If they don’t stick to the rules, they face a fine or even being “named and shamed” – this was happening before April though, with some big, household names exposed as failing to pay the NMW to some of its workers. Also, employers are now required to keep all records of furlough claim calculations for six years too. Retaining all of this data is for lawful purpose, so there is no breach of GDPR.
Related were increases to the NMW for workers age 16 and over. The apprentice rate of NMW, for any apprentice aged under 19 or, if they are aged 19 or over, for the first year of their apprenticeship, has also increased to £4.30 per hour. The National Living Wage (NLW) rose in April as well, from £8.72 to £8.91 per hour, and this now applies to anyone aged 23 or over (it had applied to anyone 25 or over). All the new rates are the result of the government accepting the findings of the Low Pay Commission’s 2020 report.
Protecting all workers
The first point to make here is the pandemic has made it plain how lower-paid workers often perform the kinds of critical roles that keep the economy going during the toughest of times. The second is that HMRC is clearly committed to ensuring that these workers’ living standards are protected.
Taking care of everyone in your practice, no matter how many there are and how much they earn, means that you can not only grow your reputation for being a great place to work, but you will also retain a motivated, talented team to support you on this journey. Your patients will benefit from an efficiently-run, productive practice too. This is why outsourcing your payroll to a specialist provider is often a great idea. They can take care of all the functions of payroll, cutting though any complexity, to ensure it is smooth and accurate, and keep you compliant with any change to the law – and help you prepare for any more changes to come. This saves stress as well as time, eliminating the risk of errors, leaving you free to get on with the day to day of providing an exceptional level of care. Wagemate is one specialist provider that manages payroll for many happy clients. Combining expertise and experience with the best use of the latest technology, you will get other features that simplify certain processes, such as its ePayslips portal, which is user-friendly as well as highly secure.
Relevant record keeping is a key protocol of efficient payroll. Knowing that you have the correct information to hand, if and when required, means peace of mind for you, and that you won’t get into hot water with HMRC. Payroll is a hard-working process that keeps all businesses functioning properly, as well as keeping all those who work for them happy. It has had changes forced upon it by the pandemic, but some new rules have been long planned, and there are likely to be more in the not-so-distant future. To stay on top, outsource to a provider that will make the job easy, effortless and correct, every time.
To better manage your payroll, contact payroll specialists Wagemate today,
tel: 03330 102102 or email info@wagemate.com
Author:
Daniel Hull – Director – Wagemate Limited
“Money isn’t everything, but its right up there with oxygen”.
Staff are a business’s most important asset and peoples pay matters! Making sure employees are paid correctly, on time and have access to their pay information is one of the fundamentals to keeping staff happy. That is what we do and much more.
My goal is to take away the stress of payroll away from as many people as possible, making sure staff are paid accurately and on time and by adding value, providing excellent service and plenty of convenience to our clients.
