Monthly payroll compliance

Produced by Tolley in association with

Employment Tax

Guidance

Monthly payroll compliance is generally concerned with RTI compliance, although an employer may also need to comply with other legislation.

RTI compliance is concerned with paying over to HMRC the correct amounts of tax, NIC (employees’ and employer’s), deductions including student/postgraduate loans and making the correct statutory payments. This has taken on more importance under real time information (RTI), as HMRC will calculate what they think is due from 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 on a monthly basis. The precise nature of the reconciliations may vary depending on the software and accounting systems used. As many of these checks may be in the nature of audit and internal control (rather than merely tax requirements), employers may wish to refer to internal audit guidelines. However, the following are the typical objectives of such

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Vince Ashall

Payroll Consultant & Trainer at VA Payroll Services

Involved in payroll for more years than I care to remember! Initially in the NHS, where i oversaw the development of the NHS's bespoke payroll system (SPS Standard Payroll System), and latterly in the private sector. Served for 13 years as a MNT for a private sector defined benefit pension scheme. Have had articles published in payroll publications and and provide updates for various publishers. Fellow of the CIPP and gained a MSc in Payroll & Business Management in 2002. Now a self employed payroll and pensions consultant

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