Payroll Processing – Common Errors

Posted on: January 15th, 2019 by Clive Headon No Comments

With many legislative changes coming into force from April 2019, we thought we would point out some common errors employers can make when processing their payroll.

National Minimum Wage

  • Ensuring the minimum wage is increased from the 1st April each year (not the 6th).
  • Paying the correct hourly rate for an employee’s age category, and increasing this rate when the employee turns 18, 21 or 25.
  • Making sure you are not paying an apprentice wage if your worker is not an apprentice, as an employer you must ensure you have an official apprentice contract in place between you and the training provider along with a structured training plan. You should also ensure that you fully understand the legislation on employing apprentices so that you are not paying an apprentice rate for too long, i.e. if your worker is 19 then you can only pay the apprentice rate for one year.

The new National Living Wage and Minimum Wage rates set to apply from the 1st April 2019 are:

25 and Over 21 to 24 18 to 20 Under 18 Apprentice
April 2019 £8.21 £7.70 £6.15 £4.35 £3.90


As an employer you must be careful what you deduct from your employees’ wages, ensuring that a deduction does not reduce the national living wage or national minimum wage. There are some exceptions;

  • Income Tax, National Insurance & Student Loan repayment
  • Repayment of a loan or advanced wages
  • Repayment of an accidental overpayment of wages
  • Accommodation provided by your employer (rates apply)
  • An employee error i.e. shortfall in a shop till (if stated in the employees contract)
  • Employees own benefit, i.e. union subscriptions or pension contributions

for more information on deductions of earnings please click on the following link


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