The risks of slacking on Payroll compliance

Payroll compliance is a must for businesses of all sizes, the risks of non-compliance can leave you and your business in a situation difficult to recover from.

Businesses must follow the guidelines in place and report to HM Revenue and Customs (HMRC) correctly to ensure they are complying with the payroll legislation in place.

What payroll obligations must I complete?

As a business owner, you have certain responsibilities to fulfil and ensure your processes are efficient.

You must calculate your employees’ wages correctly. This includes tax and National Insurance deductions as well as pension contributions.

It must be submitted to HMRC on time, so they can analyse the information and see that your deductions and pay slip information are correct.

As well as submitting payroll information on time, you must keep all payroll records.

Your employee must then receive a copy of their payslip, either a paper or digital version, depending on your company’s processes.

In addition to this, pay for your employees must start at minimum wage and ensure they receive any statutory entitlements.

You cannot afford to make any mistakes, and if you have concerns about your payroll processes, you should speak with finance experts.

What are the risks of non-compliance with payroll regulations?

Failing to meet your legal obligations will have a detrimental effect on your business. It’s essential you know what is required of you and your payroll processes.

Any failings can lead to significant fines from HMRC. This includes late reporting and incorrect data, which could see HMRC open further investigations in which HMRC audits your company.

Non-compliance can also lead to criminal investigations, which can do serious damage to your company’s reputation. This is always hard to recover from, and companies are never perceived in the same way.

You also need to consider your employees. Not complying with the regulations can have an impact on the relationship you share with your employees. They will grow tired of late payments, and any sniff of HMRC investigation will heighten uncertainty.

You cannot afford to slack on payroll compliance because failure has a rippling effect across your whole business.

Support is available for business owners

Given how crucial payroll compliance is, businesses need to ensure they know their legal obligations and are fulfilling them.

It’s easy to forget how important it is, and while it can be time-consuming, you cannot take payroll compliance for granted.

If you have any queries or are unsure about what is required, help and support are available.

Our team of finance experts is ready to help, offering tailored advice and support to suit the needs of your business. We will support your business, so you understand your payroll obligations while also helping you assess your current processes to see if it’s fit for purpose.

For all payroll queries, get in touch with our team for comprehensive advice and support.