New payslip regulations highlight businesses that fail to meet minimum wage

New regulations regarding the information given to employees on payslips come into force from 6 April. What do they mean for employers?

Employers will be required by law to provide all employees with a payslip that shows more detail regarding the number of hours worked when pay is variable. The new regulations will make it easier for employees to see if their employers meet or exceed the national minimum wage. This will help bring transparency of what is actually being paid.

Rosalind Elsmore, Payroll Manager at Kreston Reeves said,

Whilst most employers will already give their staff payslips, a number do not include a breakdown of the hours worked. This is likely to cause problems for employers where they do not keep sufficient records of time worked. It is believed to be part of a wider move by the Government to give individual employees more information and a right to know exactly what they are being paid for. It will clearly highlight where employers are failing to meet the minimum wage.

The change also marks the growing importance of an accurate payroll as HMRC looks to manage the tax aspects of in-work benefits through the payroll function.
Rosalind Elsmore explains,

The end of the annual P11D form which employers are required to produce every year outlining the cash equivalent of taxable benefits for staff, such as company cars, is getting closer. Taxable benefits will increasingly be managed through payroll on a week by week or month by month basis.





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