EPS will ensure your employees pay is above the legal minimum rate | Expert Payroll Services

EPS will ensure your employees pay is above the legal minimum rate

Legal Minimum Pay Rate

From our recent sales experience, we understand that there isn’t much support from payroll providers in making sure employees are paid at their legal minimum rates. We also understand this process isn’t very easy to identify. In this blog, we want to provide our clients and prospects confidences in the controls Expert Payroll Services have in place to tackle this issue. We want to explain this with a few scenarios (this isn’t an exhaustive list):

  1. Employees paid standard annual salary and work standard hours

In this case, we look at the employees monthly pay and hours worked and derive hourly rate. This rate is then checked against minimum rate and an exception is produced if the rate falls below minimum rate. The system can be configured to automatically top-up monthly salary.

  1. When employees are paid additional allowances and also work additional hours. In this case, the system will accumulate the total hours worked plus any contracted hours in the month. Any enhancements or pay element that form part of their contracted hours should be included in their total contractual pay, for example acting up allowance etc. The calculation we would apply is:

Hourly Rate = Taxable pay (includes all contractual amounts) / total hours worked ((contracted hours + any additional hours) – any unpaid hours)

Our system then checks if the hourly rate is >= minimum rate and run auto top-up as required.

  1. For employees paid only for hours worked, the system will check and run top-up accordingly.

We will work with you during implementation and look at all your pay elements and group these correctly so the system runs the checks correctly and automatically tops up the figures. We check the minimum rates from the system parameters which are updated each tax year so you don’t have to worry about checking the minimum rates.

To find out more about our outsourced payroll services Why not give us a quick call on 020 3802 1534 or email sales@expertpayrollservices.co.uk, you are also welcomed to visit our website: https://www.expertpayrollservices.co.uk/payroll-outsourcing/