POSTED: June 21 2022
Data & Compliance Q&As
National Minimum Wage & National Living Wage

The Importance of Data and Compliance, a quick Q&A

National Minimum Wage and National Living Wage
The world of Payroll has a very fast pace. Holding the correct data has never been more important to ensure compliance. It is the Employers responsibility to ensure the data they hold is correct and current to make the required Tax and National Insurance deductions. It is also the Employers responsibility to pay all employees inline with the current NMW/NLW.

Did you know the HMRC name and shame all employers that unlawfully pay their employees below the NMW/NLW?

Q – How important is a job title? Apprentice or not?
A – Extremely!

Trainee Payroll Administrator (Employment contract) v’s Apprentice Payroll Administrator (Apprentice contract, training towards a recognised qualification)

*Did you know that a trainee will be required to receive the NMW/NLW for their age from commencement of employment?

An Apprentice under 19 must at least receive the Apprentice Rate. If the Apprentice is over 19 years of age, after twelve months of employment, you must pay the National Minimum Wage for that employee should their apprenticeship continue.

Remember, once the Apprentice Contract is over you must pay the employee in accordance with NMW/NLW.

*Did you know that Employers receive National Insurance relief on apprentices under 21 and 25.

Q – How important is the contracted hours of work?
A – Extremely!

Full time hours can mean different hours for different companies. Some people use a 35hrs, 37.5hrs and 40hr week. It is extremely important to have the right contractual hours for employees to ensure that you meet NMW/NLW requirements. The incorrect number of hours worked could mean your pay is unlawfully below NMW/NLW.

*Did you know that it is best practise to ensure good record keeping when checking that Salaries meet NMW/NLW.

Q – Do you offer your employees a Salary Sacrifice Pension and/or Cycle to Work scheme?

Did you know that Employers are obliged to refuse all employees that make a request to salary sacrifice their pay below NMW/NLW? Remember to check each individual employee’s rate.

Remember we are here to help!

Sonia Quinn, advo Payroll Manager