How to simplify RTI compliance in UK payroll
Real Time Information (RTI)
Real Time Information - introduced in 2013 - has been around for a while now. We all know that payroll information has to be submitted to HMRC on or before the day employees are paid - and HMRC penalises employers who don’t submit a Full Payment Submission on time. Although RTI isn’t news to us, it remains a compliance issue for payroll bureaux and managers.
Payroll legislation is constantly changing, and the responsibility is ultimately on bureaux and payroll professionals to ensure that the business area is complying with current laws in order to avoid mistakes, fines - or even lawsuits.
Payroll software providers are having to evolve - and quickly - in order to keep up with new legislations and ensure they’re meeting the needs of those responsible for processing and reporting pay runs. Although it’s a tricky subject, compliance can be made a lot easier if you find a reliable payroll software that can automate these necessary processes. With advances in payroll software technology, we can look out for certain features that will help us with RTI compliance and a smoother reporting process.
Get the employee details right
When reporting payment summaries to HMRC, attention to detail is extremely important. Different elements of pay could require different tax and National Insurance treatments and things like pension payments, sick pay and expenses need to be handled correctly. Sourcing a platform that captures the whole employee experience in an all-in-one system could allow bureaux to easily access and monitor this sort of data.
With a modern payroll software, you can automate the reporting process and relieve yourself of the manual stress. Find a provider that automatically creates FPS as you move through the payroll year. Being able to ‘click’ a button to lodge the FPS and ensure you record and submit the right information to HMRC on time means avoiding admin hassle - and late penalty fees.
Payroll in the cloud
By shifting to a truly cloud-based payroll software, any changes in legislation will be automatically updated in the platform. You won’t need to install any changes, and compliance will always be ensured. Data will also be securely transferred in the cloud to HMRC with no risk of data loss. Growing bureaux should consider cloud software as it has the capability to scale with their business and handle reporting for larger numbers of employees.
Find the right payroll support
Find a payroll provider that offers a support service in case you need any extra guidance - whether that’s self-training with support articles and videos, or having the option to get in touch with a team who can answer your queries.
RTI has been the biggest change in the PAYE system since it launched in 1944 and has benefited employers and employees with more accurate reporting at the end of the tax year. In this digital age, advancements in technology are improving what were traditionally quite time-consuming processes. Bureaux should be actively assessing their payroll solutions to ensure they’re seizing the opportunity and using technology to add value to their business.