New minimum wage rates came into effect on 1 April 2022 and your Payroll processes should now be taking account of this. There is, however, a lot more to being minimum wage compliant than simply paying a higher hourly rate. Here are two things to watch out for if you want to avoid an unexpected penalty from HMRC.
6 April is the start of the new tax year and the date when changes to tax rates and allowances usually come into effect. The start of the 2020-21 tax year brings changes to the Employment Allowance, the National Minimum Wage and statutory payments.
Employers in the social care sector have had mixed messages from HMRC as to whether National Minimum Wage (NMW) should be paid to workers carrying out sleep-in shifts. It has now been made clear that NMW does apply in such cases.
Breaking the rules for the National Minimum Wage can be costly. Potential large fines and negative publicity could damage your reputation as an employer. Now is a good time to check if your business is compliant.