{"id":6015,"date":"2019-01-30T11:18:35","date_gmt":"2019-01-30T11:18:35","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=6015"},"modified":"2026-01-29T10:26:41","modified_gmt":"2026-01-29T10:26:41","slug":"payroll-compliance-guide","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/payroll-compliance-guide\/","title":{"rendered":"The ultimate guide to payroll compliance and legislation"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tThe ultimate guide to payroll compliance and legislation\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2019-01-30T11:18:35+00:00\">30 January, 2019<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"The ultimate guide to payroll compliance and legislation\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-gb\/blog\/payroll-compliance-guide\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-gb\/blog\/author\/staceymcintosh\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2018\/11\/Stacey-McIntosh-350-1.jpg\" class=\"entry-author__image\" alt=\"\" \/>\t\t\t\t<span class=\"entry-author__name\">Stacey McIntosh<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p>Payroll and HR departments face numerous challenges, such as paying your staff on time and making sure they receive the correct salaries, but one of the biggest that has to be tackled is compliance.<\/p>\n\n\n\n<p>From complying with the <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/gdpr-and-payroll\/\">General Data Protection Regulation<\/a> (GDPR) and the National Living Wage, to correctly offering <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/pension-contributions\/\">workplace pensions<\/a> and making sure the right processes are in place for your <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/payroll-year-end\/\">payroll year end<\/a>, there are lots of areas that you need to cover.<\/p>\n\n\n\n<p>And it\u2019s important that your business maintains the right records to document your compliance.<\/p>\n\n\n\n<p>Using an efficient <a href=\"https:\/\/www.sage.com\/en-gb\/payroll-software\/\">payroll software<\/a> system can help you do this, while also helping to keep your employees happy.<\/p>\n\n\n\n<p>But if your business is making mistakes with payroll \u2013 be it down to record keeping or a failure to remain compliant \u2013 you\u2019ll be a risk of being penalised or even face lawsuits. Reports suggest that a third of small businesses are penalised for incorrect payroll.<\/p>\n\n\n\n<p>However, it\u2019s true \u2013 keeping up with payroll legislation and the current laws can be challenging, especially as they are ever changing.<\/p>\n\n\n\n<p>Staying informed with the latest legislation changes is important and it\u2019s worth taking the time to make sure you\u2019re on top of new outcomes. The ultimate guide to payroll compliance will help you tackle this challenge head on.<\/p>\n\n\n\n<p>The guide takes an in-depth look at the challenges your business faces and the payroll solutions that will help your HR or payroll department to overcome them and confidently meet any compliance requirements.<\/p>\n\n\n\n<p>In this guide, you will find advice covering the following topics:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>How to stay compliant<\/li>\n\n\n\n<li>Workplace pensions<\/li>\n\n\n\n<li>Cycle to Work scheme<\/li>\n\n\n\n<li>Gender pay gap<\/li>\n\n\n\n<li>Right to work<\/li>\n\n\n\n<li>Tax-Free Childcare<\/li>\n\n\n\n<li>Real-Time Information<\/li>\n\n\n\n<li>Payroll Year End (PYE)<\/li>\n\n\n\n<li>National Living Wage<\/li>\n<\/ul>\n\n\n\n<p>Here\u2019s an excerpt from the guide:<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-cycle-to-work-scheme\"><strong>Cycle to work scheme<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-compliance-summary\"><strong>Compliance summary<\/strong><\/h3>\n\n\n\n<p>If you take part in the Cycle to Work scheme, your employees can agree to temporarily reduce their wages to pay for the hire of a bike, accessories and safety equipment.<\/p>\n\n\n\n<p>To be compliant with the National Minimum Wage (NMW), employees are not allowed to reduce their earnings below the NMW by way of salary sacrifice. Salary sacrifice schemes are due to change in April, but the Cycle to Work scheme has been protected.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-it-means-for-your-payroll\"><strong>What it means for your payroll<\/strong><\/h3>\n\n\n\n<p>HMRC advises that the most appropriate way to deal with salary sacrifice is to set up a negative payment.<\/p>\n\n\n\n<p>This ensures the employee\u2019s total gross pay is correctly reduced,&nbsp;so other calculations, such as for average earnings, are correctly worked out.<\/p>\n\n\n\n<p>Sage payroll solutions have salary sacrifice settings that will correctly reduce the total gross pay&nbsp;value, so that any values submitted to HMRC are correctly recorded.<\/p>\n\n\n\n<p><strong>For more useful advice, download your free guide \u2013 The ultimate guide to payroll compliance.<\/strong><\/p>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">The ultimate guide to payroll compliance<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Facing the challenge of keeping up with payroll compliance? Read this guide for essential tips to make sure your business complies with the relevant payroll legislation.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-22f63cc4-4bd3-47ed-93cf-d71df67c49a8\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Get your free guide<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t<div class=\"single-cta__downloads\">\n\t\t\t\t\t\n\t\t\t\t\t11,055 readers have downloaded this guide\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1213\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2019\/01\/PMARCHITECTS_BB_03_078_2018_32240-1213x810.jpg\" class=\"single-cta__image\" alt=\"Get the ultimate guide to payroll legislation\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2019\/01\/PMARCHITECTS_BB_03_078_2018_32240-1213x810.jpg 1213w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Join more than 500,000 UK readers and get the best business admin strategies and tactics, as well as actionable advice to help your company thrive, in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-b1a63862-3fa0-4a5e-bb67-c76b88bbc6b8\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Payroll and HR departments face numerous challenges, such as paying your staff on time and making sure they receive the correct salaries, but one of the biggest that has to be tackled is compliance. From complying with the General Data Protection Regulation (GDPR) and the National Living Wage, to correctly offering workplace pensions and making [&hellip;]<\/p>\n","protected":false},"author":346,"featured_media":5973,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"footnotes":""},"categories":[139,6],"tags":[41,37],"business_type":[4,3],"lilypad":[],"context":[],"industry":[],"persona":[69,73,74],"imagine_tag":[92,96,109],"coauthors":[353],"class_list":["post-6015","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-free-guides-templates","category-money-matters","tag-hr-process","tag-payroll","business_type-small-business","business_type-medium-sized-business"],"sage_meta":{"region":"en-gb","author_name":"Stacey McIntosh","featured_image":"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2019\/01\/GettyImages-595348089.jpg","imagine_tags":{"92":"HR and Payroll","96":"Medium businesses","109":"Small business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice UK","distributor_original_site_url":"https:\/\/www.sage.com\/en-gb\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/6015","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/users\/346"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/comments?post=6015"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/6015\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media\/5973"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media?parent=6015"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/categories?post=6015"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/tags?post=6015"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/business_type?post=6015"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/lilypad?post=6015"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/context?post=6015"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/industry?post=6015"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/persona?post=6015"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/imagine_tag?post=6015"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/coauthors?post=6015"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}