HMRC has sent GEN notifications to employers regarding National Minimum Wage – NMW. If you have an NMW issue, you must act now.
Use our Q&A below to assess your NMW situation:
Do you pay exactly (or close to) the NMW rate to your employees?
By paying exactly the NMW rate, you are operating at a high risk, as any unpaid time, deductions or pay which is not included for NMW purposes will cause an underpayment. You should be especially cautious if your employees:
- Wear uniform
- Open or close premises
- Are subject to 15 minute rounding
- Perform any unpaid work
- Receive a shift allowance
- Are part of a salary sacrifice scheme
Have you considered the risks of NMW underpayment?
NMW underpayment can, in serious cases, lead to imprisonment and prohibition from acting as a company director.
Most employers will be subject to a fine of up to 200% of the underpayment.
Who enforces NMW?
HMRC are entitled to investigate reported underpayments of NMW. They are likely to investigate all employees, even if the original report was made without merit. They may also audit companies for NMW purposes without an initial report.
I am concerned about my NMW position, what can I do?
SD Worx has several services which can assist in relation to NMW.
Firstly, if you are concerned you may have a problem, please contact the PALS Consultancy Team. PALS provide premium services including consultancy, friendly audits and assistance during a live HMRC investigation.
If you would like further information in relation to NMW, please join our webinar on the SD Worx Academy on Friday June 21st 2024, 11:00-12:30.
Finally, SD Worx has Minimum Pay compliance solutions, including automated pay rates & compliance reporting. For more information about these services, please contact your account manager.