Professional April 2020

Payroll

● Stakeholders and employer support mechanisms – When an employer recruits their first employee or worker, no longer can they work to comply in isolation with the myriad of legal obligations that are placed on them. On the contrary, they need a significant support mechanism in order to deliver and stay up to date as they attempt to provide compliant payroll and human resources (HR) services, which as a minimum will include: accountants and payroll providers, software developers, legal/HR services, and banking services. Guidance and technical information therefore needs to be provided at appro- priate levels and at a time that recognises the needs of the users. A prime example of where this process is not as robust as it once was, and thus is failing employers, is software developers that support all ...impact on the strategy and the work output of all three agencies

(whatever media are used) could aid employers to understand and apply correctly the rules explained in guidance from the Department for Business, Energy and Industrial Strategy (BEIS). This is particularly where that guidance is in HTML format online. ● Impact of legal rulings – Where court rulings set legal precedence, the impact on the operation of NMW (and other subjects) should be made clear by BEIS and HMRC at the earliest opportunity. Media campaigns should be used to raise wide awareness of the impact, together with prompt updates to operational guidance and education materials. The delays that have been experienced in recent years across many policy subjects are unacceptable. Whilst the media should not be relied upon to cascade critical technical information without direction (which otherwise can lead to misinformation and confusion), neither BEIS nor HMRC fully utilise the efficiency of stakeholders to cascade important and accurate messages and updates in the interim, while working to update their library of employer information, education, support materials and resources.

stakeholders – they are key in ensuring the compliance chain.

Conclusion We are pleased to see that BEIS and HMRC have begun to utilise the skills, knowledge and experience of stakeholders in delivering NMW compliance through the use of forums and gatherings, but more can be done. We welcome the opportunity of being involved now and in the future. We believe that the DLME will play a key role in the establishment of the single enforcement body. Though we know this isn’t the focus of this call for evidence, it can’t be ignored as it will have an impact on the strategy and the work output of all three agencies. We look forward to further discussions and trust that ample time will be given to develop and establish such an agency so as to ensure employers continue to be compliant and those experiencing unintentional non-compliance when paying NMW reduce in numbers. This is of particular importance as the reach of the minimum wage continues to increase. n

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| Professional in Payroll, Pensions and Reward |

Issue 59 | April 2020

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