Every business has to implement and maintain compliance measures across the organisation. Employers have requirements and obligations for reporting to tax and compliance authorities each year as well. Failure to ensure compliance can result in steep fines and penalties.
One of the first payroll requirements for employers is to set up auto enrolment and pension schemes for employees, make declarations of compliance to The Pensions Regulator (TPR). There are strict penalties for failure to report to TPR, so companies must ensure they are accurately reporting pension schemes and auto enrolment data in the right timeframe. TPR has prosecuted a companies in the past who failed to provide pension schemes for their employees. The fines can be unlimited, and up to 2 years in prison for failure to comply with the law.
Another important part of compliance is related to GDPR. As new changes are implemented to protect consumer data, companies must ensure compliance or face strict penalties up to 4% of annual turnover. With all of the changing compliance and regulatory requirements each year, it can be overwhelming for companies to manage and comply with all of the regulations.
Companies cannot ignore compliance – the potential penalties are too high. Every company needs to create a plan to ensure and maintain compliance. Utilising a cloud-based payroll solution takes the burden off your team for auto enrolment, HMRC compliance, and GDPR maintenance. You can ensure your company is following all compliance regulations and avoid penalties or fines.
