Happy staff usually means a happy business with good productivity day-in, day-out, so surely paying your staff members the correct amount of money is a huge factor for every business. Obviously, there is no limit on the maximum amount of money you can put into payroll, but if you do not follow the legal minimum, then this can cause a lot of problems for your business…
Coleman & Co can provide expert advice on all financial issues within a business and assist you with every payroll need. We will keep on top of every staff member’s wage and salary so you are in line with every legal requirement.
Paying Minimum Wage
The minimum wage for each staff member will vary depending on the age they are and whether they are an apprentice or not. Minimum wage is the hourly rate that you have to pay your staff, which is required by law to give them a fair payment. Any other factors should not impact the minimum wage for staff members. The minimum wage you MUST pay your staff members of each age group is:
- 25 & Over –£7.50
- 21 – 24 – £7.05
- 18 – 20 – £5.60
- Under 18 – £4.05
- Apprentices – The national minimum wage for apprentices is £3.50 if they are under 19 or in the first year of their apprenticeship. If they are in their second year, their age category decides their national minimum wage.
These figures will change every April, most recently increasing in April 2017 by between £0.05 or £0.30 per hour in each category. Often a great option for your business to keep costs low is to employ first year apprentices and train them to the way your business works and ensure they can do the job effectively. With over 509,000 apprentices currently in the workplace, your business could benefit from this choice and our team will help manage payroll in this situation.
You will always have the choice of what to pay your workers and although this is the minimum, there is no limit on what you pay your staff members – As long as it doesn’t bankrupt your company!
Deducting Tax Accurately
Deducting tax can be something that not everyone is trained in and not something that everyone does right. Whether you are taking too much tax or not enough, it is going to affect your business in a negative way. By taking away too much, you are instantly taking away more of your staff’s hard-earned money, which could cause disputes – by not taking away enough you could face penalties from the HMRC.
When earning a personal income, there are two taxes that you will have to pay, unless you are exempt because you do not earn enough or you are not old enough. The two taxes are:
- National Insurance Tax
- Value Added Tax (VAT)
VAT is not required to be charged if your staff members earn less than £11,500 per year however they will be charged National Insurance Tax if you earn more than £157 a week and you are over the age of 16.
When you have to pay your staff, you should take into account all the factors of each individual before making their payment. Coleman & Co will always remove the correct amount of money for taxes and guarantee your staff are paid the correct and legal amount.
Equal Pay
Every business is required to pay the equal amount of money to staff members who work within the same role and you cannot discriminate for any reason within the same job roles. This is not just equal pay for women, but also ensures businesses cannot pay less money because of:
- Religious Beliefs
- Ethnicity
- Age
- Skin Colour
- Class
- Personal Reasons
- Disabilities
Worldwide people campaign for equal pay for everyone including celebrities such as Serena Williams, who said “Speak out for equal pay. Every time you do, you’re making it a little easier”, as quoted by BBC News. Your business should be a part of equal pay and Coleman & Co can again help to ensure staff are paid the right amount.
Contact Us
If you require help managing your payroll or need advice for any legal issues regarding finances within your business, Coleman & Co are always available throughout Lisburn to help. Just contact us today on 028 9266 3599 and discover the range of services that we have available to you.