Real Time Information (RTI) was introduced in April 2013 and for the first time obliged employers to notify HM Revenue and Customs each and every time they make a payment to an employee. As the title implies ‘Real Time Information (RTI)’, this has to be done at the time, and it is not possible to catch up later when, for example, your payroll clerk has returned from holiday. This puts a massive pressure on the company to comply with the Real Time Information (RTI) legislation. Whilst in the introductory stages HMRC made some allowances for small companies to adjust to meet the RTI requirements, since March 2015 all firms have been liable for monthly fines starting from £100 if there is evidence of non-compliance, making it essential that employers follow the legislation.
The responsibility that this has brought on employers dwarfs into insignificance when compared to the pressures Auto Enrolment, the Government’s new compulsory pension scheme, brings when this is progressively introduced to smaller employers from 2015 onwards. It is hard to over-emphasise the difficulty in getting a suitable scheme established and the complexities in calculating and reporting the deductions each time a payment is made to the employee
These 2 changes have really emphasised that it is no longer possible for a member of staff to “do the payroll” alongside other duties. The legislative changes are difficult to comprehend and the “real time” nature of both of these changes means that payroll has to take priority each and every time a payment is made to employees.
So how can using Harvey, Telford and Bates to prepare your payroll help you overcome the challenges Real Time Information (RTI) presents?
First of all we have a dedicated payroll manager who fully understands Real Time Information (RTI) and the requirements of the new legislation and a number of other members of the team are trained to provide back-up in our payrolls manager’s absence. Secondly we have made a large investment in training to ensure that we are fully conversant with all of the new legislation and have developed relationships with providers for pensions under Auto Enrolment. Finally, we have invested in the industry leading software Iris payroll professional to ensure that the legislation and reporting requirements are fully met.