COMPLIANCE
Minimum wage: compliance is critical
Paul Chamberlain, head of employment law, JMW Solicitors LLP, runs through some of the important minimum wage compliance considerations payroll professionals need to be aware of
W hen it comes to payroll, one of the key concerns for businesses is compliance. The prospect of failing an audit or making errors when processing the payroll can cause a great deal of stress for employers. This article focuses on the legal implications of failing a HM Revenue and Customs (HMRC)
2024 came into force on 1 April 2024, which amended the hourly rates for the NMW and national living wage (NLW) prescribed in the National Minimum Wage Regulations 2015. The changes include: l extending the NLW to apply to workers aged 21 and over (previously 23 and over) and increasing the rate from £10.42 to £11.44 per hour l increasing the NMW for 18- to 20-year- olds from £7.49 to £8.60 per hour l increasing the NMW for 16- to 17-year- olds from £5.28 to £6.40 per hour l increasing the apprentice rate from
£5.28 to £6.40 per hour. Employers must ensure that they pay employees at least the NMW, or NLW if applicable, as above. Compliance is assessed by reference to a worker’s hourly rate. If the payroll team makes incorrect calculations or fails to adjust wages in accordance with the 2024 Regulations, this can result in penalties and significant legal repercussions for the company. In accordance with s.9 National Minimum Wage Act (NMWA) 1998, employers have an ongoing obligation to keep certain records in relation to the
audit in relation to payment of the national minimum wage (NMW).
NMW regulations The National Minimum Wage (Amendment) (No 2) Regulations
| Professional in Payroll, Pensions and Reward | November 2024 | Issue 105 28
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