Paying your staff the correct amount of money should be an essential for every single business. Despite this, many businesses continue to underpay staff wages throughout the year, without their employees knowing.
Coleman & Co can help all businesses throughout Lisburn organise payroll and minimum staff wages correctly, so staff members will never be underpaid.
Minimum Wage Pay
Many businesses choose to employ apprentices or give minimum wage to save costs. Although there is no problem with this, you must ensure minimum wage is given. This is a legal requirement and if you fail to comply, you could be given fines which will only cost your business more money.
With 179 employers being fined £1.3 million for underpaying staff last year, this is an easily made mistake. Big companies such as Wagamama, TGI Fridays and John Lewis have all made previous errors in staff payments. If big companies can make these mistakes, it could easily happen to any small business.
Having an accountant to keep your payroll organised will mean any errors are spotted and amended before becoming an issue.
What Is Minimum Wage?
Minimum wage varies for each staff member, allowing you to give a lower minimum wage to certain staff members than others. Minimum wage is also different for apprentices and you should always understand the different minimum wage rates available. These are the minimum wage rates you must always adhere to for any staff member:
- Apprentice – £3.50
- Under 18 – £4.05
- Aged 18-20 – £5.60
- Aged 21-24 – £7.05
- 25 & Over – £7.50
Minimum wage will increase again in April 2018 and your staff wages will have to adhere to the changes made. You should always keep up to date with minimum wage changes to ensure your business will not receive fines. Our accountants can keep you updated and adjust payroll to meet all legal requirements.
Sick & Holiday Days
The majority of workers are entitled to a minimum of 5.6 weeks or 28 days paid holiday. In addition to this, staff are also allowed to have sick days, with Statutory Sick Pay being a legal requirement. Staff members could also change holiday to sick leave, which would allow them to be paid for Statutory Sick Pay.
If you are only off for one, two or three days, you are not qualified for any sick pay. If you are off for four days in a row, you will then qualify for sick pay. You must be given a minimum of 28 holiday days, however, this could also include bank holidays, if your employer decides to allow this. If you are paid for the 8 UK bank holidays, you will not be entitled to these 8 days holiday.
Keeping Payroll Organised
Every business wants to keep their staff happy and the correct payment will ensure you do this. To keep payroll organised, you must always adjust staff wages to be in line with minimum wage and any changes. Accountants will always make sure your payroll is adjusted to keep your staff members happy and reduce errors.
You should also keep a record of all payments made to your staff members. As the HMRC will review your taxes and staff wages, you must keep a record of all payments to submit the correct financial information. With the correct records available, you will not risk giving incorrect information to the HMRC.
Your payroll should always be organised and staying on top of minimum staff wages is essential. If you need advice or assistance regarding your payroll, our team will always help in Lisburn. Coleman & Co provide several services and will always discuss your requirements for any service. Call us today on 028 9266 3599 or fill in our contact form to make an enquiry.