
A quarter of SMEs are unaware of major changes that will affect payroll reports by April 2013, says a new survey by the Federation of Small Businesses (FSB). FSB surveyed 1,700 small organisations, and found that only 16 per cent of respondents were fully aware of the Real Time Information (RTI) programme.
From April next year, employers will be legally required to report PAYE in real time. This means that information about all PAYE payments needs to be submitted to HM Revenue and Customs (HMRC) online each time a payment is made. This is replacing the current system of submitting all payments at the end of the year. Worryingly, a large proportion of SMEs are completely unaware of the new system, despite it being critical to the success of Universal Credit. A further 60 per cent of firms say they have had no communication from HMRC about the changes. National chairman of the Federation of Small Businesses, John Walker explained: “Without adequate communication and education from government, small firms won’t be able to prepare. It just isn’t fair if they’re then penalised for not complying.”1. Legislative changes
Find out what the legislative changes will mean to your processes by speaking to your payroll software provider. This will ensure you continue to pay your employees and HMRC on time, whilst also fulfilling the legislative requirements of submitting more frequently to HMRC2. Data cleanse
3. Communicate
Communicate with your employees about how important the information they provide the employer with is in ensuring the accuracy of their payroll, so they are educated on the implications of providing inaccurate information4. Information security
Store all your business information securely so that you can react quickly to any requests, demands or legislative issues that arise. Use HMRC recognised payroll software to reduce the burden on doing payroll manually every month; this will help you automate processes, mitigate errors and give you peace of mind that you are fully compliant5. Make the most of customer service
Some software have dedicated help desks for you to contact. Use this facility to check with help desks that you have all the data you need for your RTI submissions, and remember that all responsibility for paying employees correctly, and in line with RTI, rests with the employer.Share this story