The payrolls of most employers are fully automated nowadays and so the risk of making mathematical errors on salaries and wages are minimal, especially where the employer is using respected software.

However, there is still scope for employers to make mistakes which could result in incorrect PAYE returns being made to HMRC or the wrong amount of tax and National Insurance being paid. Examples of errors we have seen include:

  • Salary sacrifice adjustments being calculated on the wrong pay figure
  • Car allowances being coded (and therefore taxed) incorrectly
  • Incorrect tax codes being used
  • Gross payments being made in error
  • NI mistakes on certain benefits and expense payments

The vast majority of these mistakes are down to human error and so a payroll process review can often be very useful for organisations with large or multi site payrolls or a fragmented payroll team to identify any inherent risks in how they process payroll information internally.

 

What support can Optimum PAYE provide ?

Typically we would undertake the following during a payroll process review:

  • Onsite review of current processes including manual handling and inputting of data, discussions with key personnel and a run-through of the processes involved
  • Summary report highlighting main areas of risk and our recommendations
  • Input and guidance in taking the recommendations forward
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