COMPLIANCE
Ensuring compliance If employers don’t comply, the government is prepared to take robust action in this area. HMRC conducts proactive, targeted enforcement activity and considers all complaints from workers – even those made anonymously. Last year’s minimum wage compliance and enforcement budget was £27.8 million – more than double the comparable figure for 2015/16, which was £13.2 million. And since 2015, the government has ordered employers to repay over £100 million to more than 1 million workers, putting money back into the pockets of those who have earned and deserve it. The government is always keen to strike the right balance, offering support for the vast majority of employers who continually strive to do the right thing, while taking appropriate action against those who do not. This year’s increases to the NLW and NMW are a landmark moment for employers and workers alike. Payroll professionals have a key role in turning policy into reality. By working together, we can all help to deliver real change for the people of the United Kingdom. n
in 2015, and by over £10,000 compared to a worker on the relevant NMW rate in 2010. With 2.9 million workers projected to directly benefit from these increases, across every region and nation of the United Kingdom, and in every sector of employment, it’s fair to say that this is a policy with one of the very biggest impacts. The risks The government doesn’t underestimate the impact that bringing the new legal requirements into reality will have, and is grateful to all the hard-working payroll professionals already preparing to implement the new rates from April. It’s important to remember, however, that the minimum wage can be more like a calculation than a number – and that paying at, or close to, the rate can still risk an inadvertent underpayment. Employers and payroll professionals should continue to take time to study the guidance, and fully understand what’s required of them. Thankfully, additional assistance is at hand. A full calculator is available via GOV.UK – https://ow.ly/VhPv50QqRjF – which can
help employers avoid many of the most common (and some of the less common) pitfalls. "HM Revenue and Customs conducts proactive, targeted enforcement activity and considers all complaints from workers – even those made anonymously" An employer may also contact the Advisory, Conciliation and Arbitration Service (Acas) via its helpline (0300 123 1100 – open Monday to Friday between 8am and 6pm) for free and confidential advice. Meanwhile, HM Revenue and Customs (HMRC), which enforces the minimum wage on behalf of the DBT, has a ‘promote’ team that carries out a great deal of activity, contacting many employers to educate and support them in fulfiling their minimum wage responsibilities appropriately.
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| Professional in Payroll, Pensions and Reward |
Issue 98 | March 2024
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