Payroll Compliance and Health Check Services in the UK
Ensure your payroll is HMRC-compliant with a Phrism Payroll Compliance and Health Check. We'll review your systems and procedures to identify and resolve any potential issues, giving you peace of mind. Book a free consultation today!
We'll take care of your payroll compliance, so you can focus on your business.
A payroll compliance and health check is a comprehensive review of your payroll systems and procedures to ensure that they meet all HMRC requirements. This includes checking that you are calculating and deducting the correct amount of tax and National Insurance contributions from your employees’ pay, and that you are submitting the correct returns and payments to HMRC on time.
Importance Of Payroll Health Check & Compliance
Payroll compliance is important for a number of reasons. Firstly, it ensures that you are meeting your legal obligations as an employer. Secondly, it helps to protect your employees from financial hardship if they are underpaid or overpaid. Thirdly, it can help to reduce the risk of fines and penalties from HMRC.
Payroll Compliance Review
- Review of payroll software and processing procedures
- Review of employment status of all workers
- Review of compliance with National Minimum and Living Wage legislation
- Review of compliance with part-time and casual workers’ legislation
- Review of compliance with salary sacrifice legislation
- Review of payroll checking procedures
- Review of procedures for leavers and termination payments
- Review of procedures for pensions payroll and automatic enrolment
- Review of procedures for payroll returns and remittances
- Review of procedures for treatment of expenses and benefits
Payroll Software and Processing Review
A payroll software and processing review will typically involve the following:
- Review of payroll software functionality
- Review of payroll processing procedures
- Review of payroll controls and security
Employment Status Review
An employment status review will typically involve the following:
- Review of employment contracts and other documentation
- Review of work arrangements
- Review of case law
National Minimum and Living Wage Review
A National Minimum and Living Wage review will typically involve the following:
- Review of employee pay rates
- Review of employee working hours
- Review of employee eligibility for the National Minimum Wage and Living Wage
Payroll Checking Review
A payroll checking review will typically involve the following:
- Review of payroll procedures for accuracy and completeness
- Review of payroll controls and security
Leavers and Termination Payments Review
A leavers and termination payments review will typically involve the following:
- Review of procedures for calculating and paying leavers and termination payments
- Review of compliance with relevant legislation
Payroll Returns and Remittances Review
A payroll returns and remittances review will typically involve the following:
- Review of procedures for completing and submitting payroll returns and payments to HMRC
- Review of compliance with relevant legislation
Frequently Asked Questions
What is a payroll compliance and health check?
Why is payroll compliance important?
Who should have a payroll compliance and health check?
All businesses should have a payroll compliance and health check on a regular basis, regardless of size or industry. However, it is especially important for businesses that have recently implemented new payroll software or procedures, or that have experienced changes to their workforce.
What does a payroll compliance and health check involve?
A typical payroll compliance and health check will involve a review of the following:
- Payroll software and processing procedures
- Employment status of all workers
- Compliance with National Minimum and Living Wage legislation
- Compliance with part-time and casual workers’ legislation
- Compliance with salary sacrifice legislation
- Payroll checking procedures
- Procedures for leavers and termination payments
- Procedures for pensions payroll and automatic enrolment
- Procedures for payroll returns and remittances
- Procedures for treatment of expenses and benefits
How often should I have a payroll compliance and health check?
It is advisable to have a payroll compliance and health check at least once a year. However, you may need to have more frequent checks if there have been any changes to your payroll software, procedures, or workforce.
What are the benefits of having a payroll compliance and health check?
The benefits of having a payroll compliance and health check include:
- Peace of mind knowing that your payroll is HMRC-compliant
- Reduced risk of fines and penalties from HMRC
- Protection for your employees from financial hardship if they are underpaid or overpaid
- Improved accuracy and efficiency of payroll processing
- Identification and resolution of potential payroll problems before they cause major issues
What are the signs that I may need a payroll compliance and health check?
There are a number of signs that you may need a payroll compliance and health check, including:
- You are using outdated payroll software or procedures
- You have recently changed payroll software or procedures
- You have experienced changes to your workforce, such as new hires, terminations, or changes in employment status
- You have received a warning or penalty from HMRC
- You are unsure whether your payroll is HMRC-compliant
What are the consequences of non-compliance with payroll legislation?
The consequences of non-compliance with payroll legislation can include:
- Fines and penalties from HMRC
- Interest on unpaid tax and National Insurance contributions
- Repayments of overpaid tax credits
- Criminal prosecution in serious cases
It is therefore important to take all reasonable steps to ensure that your payroll is HMRC-compliant.