Is Your Business RTI (Real Time Information) Ready?
Is your business ready for RTI – Real Time Information? HMRC introduces change with effect from April 6th 2013.
Paying your employees on time is not only a contractual right but it sets a good precedent to your workforce, says employment expert The HR Dept, which looks after ‘people problems’ for micro and SME businesses in North Somerset.
After all, why would your employees be motivated to turn up to work on time if you don’t pay them on time? Salary is also one of the biggest motivating factors to employees for coming to work.
Not paying your employees on time can be classed as an unlawful deduction of wages and can lead to an employment tribunal.
This brings us to some important payroll news for you. The payroll system is going to have its biggest overhaul since its inception due in April 2013. HMRC is changing the way in which employers have to report PAYE. The new system is called Real Time Information.
Employers will be required to submit Real Time Information (RTI) on their employees’ gross pay, tax, national insurance contributions and other deductions when or before their salaries are paid. Therefore employers will be sending HMRC information on a weekly or monthly basis depending on their payment frequency, replacing the traditional ‘end of year return’ (P35 and P14). While the update is seen to be a positive in the long run, there will be fines for those that do not comply.
Click here to read more information on RTI and how companies such as The HR Dept can help you with the increased administration that is likely to accompany it.
You can contact The HR Dept on 0845 20 21 999 or visit The HR Dept