Every year, and this year is no exception, our members tell us that although they pay above minimum rates, they still experience difficulties when it comes to HMRC enforcement of the minimum wage and understanding government guidance, which still appears unclear and difficult to interpret.
The CIPP has long called for clear and concise guidance and an insight into how HMRC interprets the guidance which does not always appear to be the same as how BEIS, and employers interpret it.
The CIPP continue to lobby for a cross government consultation forum on minimum wage as a business as usual forum. We are told this is being considered by BEIS who would lead as they own this policy, and HMRC would also attend as they have a service level agreement to enforce compliance and provide education material.
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NMW bite-sized webinars 10 October 2018
HMRC has a new series of bite-sized webinars which aim to help employers avoid the common errors that can lead to the underpayment of National Minimum Wage.
Underpayment of National Minimum Wage (NMW) tends to result from a series of errors commonly made by employers.
HMRC’s new series of bite sized webinars aim to help employers avoid those errors. The first three in the series, each under 10 minutes long, cover a particular type of error.
• interns, work placements and the NMW • apprentices and the NMW • payments, deductions and the NMW
For further information on complying with minimum wage legislation read HMRC’s guide for employers.
CIPP comment
The CIPP offer a one day training course covering National Minimum Wage and other worker entitlements. Click here to book or for more information.
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Minimum wage increases from April 2019 2 November 2018
Budget 2018 confirmed that the Low Pay Commission (LPC) recommendations to increases in minimum wage were accepted in full.
It was also acknowledgement that the LPC will need a new remit when it comes to monitoring the National Living Wage (NLW) going forward following the fulfilment of the current remit of monitoring the delivery of achieving a rate of 60% of median earnings by April 2020. The NLW is on target to achieve this and based on current forecasts the LPC estimates that it will reach this target at a rate of £8.62 in 2020.
The LPC’s rate recommendations comprised:
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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