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Employers bogged down and at risk due to payroll, says Surrey accountants

Employers in Surrey spend hours each month managing their team’s payroll processes – taking them away from the other important tasks of running a business.

That is why Surrey accountancy firm, TWP, is calling on employers to take a novel approach to the handling of payroll as new rules around pay are introduced in April.

HM Treasury revealed last year that the National Living Wage (NLW) will increase by 50p per hour to £9.50 as of 1 April, as will many of the other National Minimum Wage (NMW) grades.

It has been estimated that this will mean that the lowest-paid workers on the NLW will see their annual income rise by £1,000.

Alongside this change, employers also need to get to grips with a rise in National Insurance contributions, which are increasing by 1.25 percentage points from April to support additional spending in health and social care.

Managing the salaries and pay of a team can be time-consuming and stressful, but it can also lead to penalties and public naming if an employer gets it wrong.

More than 200 employers were named and shamed by the Government last month for failing to meet the National Minimum Wage (NMW). The employers that have underpaid workers did so in the following ways according to HM Revenue & Customs:

  • 37 per cent – Deductions that reduce minimum wage pay, for example workers out of pocket to comply with the dress code
  • 29 per cent – Unpaid working time, such as mandatory training, trial shifts or travel time
  • 16 per cent – Failing to pay the correct rate to apprentices
  • 11 per cent – not increasing NMW pay in line with Government increases or paying the wrong minimum wage rate based on a person’s age.

TWP’s Managing Partner, Paul Hawksley, said: “Running a payroll is an important part of running a business but it can be stressful and rife with issues.

“This is the reason that many businesses these days are seeking help by outsourcing this function to an accountant or payroll specialist.”

Paul said that by choosing to let experts manage this work employers can save lots of time and reduce the potential for errors.

TWP already oversees the payroll processes of lots of businesses across Surrey and beyond and is offering its support to other local employers in need of advice and assistance.

To find out more about TWP’s outsourced payroll services, please contact us.