Avoid Inaccurate Payroll Data That Affects Employee Benefits and Tax Credit Payments

HMRC are warning employers that it is vital to capture and report employee hours accurately for RTI (Real Time Information) to work. Payroll data inaccuracies mean that some employees receive too much or too little benefits or Tax Credits.

At a time when benefits are being squeezed and economic pressures are still making life a struggle for many people, your employees don’t want to be faced with either shortfalls in their benefits or overpayments that they subsequently have to pay back. It’s a sobering thought that inputting employee data incorrectly could have serious consequences for your employees.  It won’t only be the Tax Office you will need to reckon with, but also your disgruntled, unhappy employees.

Relying solely on your payroll solution may be short-sighted as the data sent to the tax office is only as good as the information that is collated – and it is a fact that manually collecting information on employee hours worked will inevitably lead to errors and inaccuracies. By investing in a workforce management solution that captures employee hours in real time and automatically feeds them directly into payroll, employers can reduce payroll and RTI errors input to zero in most cases.  It can also be used to ensure employees work their proper hours, keep within the appropriate working time directives and control other labour costs such as absence and overtime. By deploying workforce management you give yourself a chance to ensure the hours-related data on the RTI is correct and your employees receive the appropriate benefits; keeping both your employees and HMRC happy.