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Monthly payroll compliance

Produced by Tolley in association with
Employment Tax
Guidance

Monthly payroll compliance

Produced by Tolley in association with
Employment Tax
Guidance
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Monthly payroll compliance is concerned with both RTI and payment compliance, although an employer may also need to comply with other legislation.

Employers must pay over to HMRC the correct amounts of tax, NIC (employees’ and employer’s), deductions including student / postgraduate loans and make the correct statutory payments recoveries (for child-related payments, not sickness payment). This has taken on more importance under real time information (RTI), as HMRC’s systems calculate the monthly PAYE scheme liability by assessing the full payment submission (FPS) and employer payment summary (EPS) submissions for each tax month. See the Real time information guidance note.

Reconciliations

To assist with compliance, regular reconciliation would normally be made by the employer, eg at least monthly. The precise nature of the reconciliations may vary depending on the software and accounting systems used. These checks should be considered as part of audit and internal control (rather than merely tax requirements) and employers may wish to refer to internal audit guidelines. However, the following are the typical objectives of such reconciliations, with any differences or discrepancies

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Ian Holloway
Ian Holloway

Payroll and Reward Consultant , Employment Tax, Personal Tax


Ian has been in the payroll profession for over 30 years, processing payrolls from all sectors, large and small. He moved from hands-on exposure in 2011 to become involved in educating the profession. His wide-ranging experience and up-to-date knowledge ensures he can impart this information to UK professionals through course material, social media, newsletters and face-to-face presentations.However, educating the profession cannot be achieved without knowing how the profession works on a day-to-day basis and involvement with hands-on administration is essential. So, today, Ian operates as a consultant and advisor and is involved with a vital aspect of the payroll and reward environment, that of working with the software that does a lot of the hard work for the profession.The return to being involved in a hands-on environment has not stopped his desire to inform, educate and train the UK payroll profession. Indeed, this is now better-achieved, as he can draw on real processing situations.Ian approaches education and communication very much from the perspective of how this will impact the software, the employer and the worker. So, whilst the legislation is vital, compliance and effective communication are paramount.Ian is Companion of the Institute for Certified Bookkeepers (ICB), committee member of the British Computer Society (BCS), a committee members of the ICAEW’s Tax Faculty and a Fellow member of the Chartered Institute of Payroll Professionals (CIPP).

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  • 03 Feb 2025 06:40

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