The ultimate guide to payroll compliance and legislation
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 […]

- How to stay compliant
- Workplace pensions
- Cycle to Work scheme
- Gender pay gap
- Right to work
- Tax-Free Childcare
- Real-Time Information
- Payroll Year End (PYE)
- National Living Wage
Cycle to work scheme
Compliance summary
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. 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.What it means for your payroll
HMRC advises that the most appropriate way to deal with salary sacrifice is to set up a negative payment. This ensures the employee’s total gross pay is correctly reduced, so other calculations, such as for average earnings, are correctly worked out. Sage payroll solutions have salary sacrifice settings that will correctly reduce the total gross pay value, so that any values submitted to HMRC are correctly recorded. For more useful advice, download your free guide – The ultimate guide to payroll compliance.The ultimate guide to payroll compliance
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.
