The Cost of Non-Compliance
Compliance is a concern for every type of business, but some companies find it can be difficult to implement and maintain. Employers have specific obligations to their employees, and must report to the correct tax and compliance authorities each year to prove they are compliant with regulations. Failure to report and comply with requirements can result in steep fines and penalties.
One of the first requirements for employers is to set up auto enrolment and pension schemes for employees, and make a declaration of compliance (within 5 months of set up) to The Pensions Regulator (TPR). There are strict penalties for failure to report or making false statements to TPR, so companies must ensure they are accurately reporting pension schemes and auto enrolment data. TPR is actively prosecuting companies who do not comply, and just this past year successfully prosecuted a company in Oldham who wilfully failed to provide pension schemes for their employees. The fines can be unlimited, and up to 2 years in prison for failure to comply with the law.
Another area of compliance companies must focus on this year are the changes to GDPR beginning in May. These new changes are designed to protect consumers from data breaches and misuse of personal data. Companies must comply with the new data privacy regulations or face extremely strict penalties (up to 4% of revenue).
With all of the changing compliance and regulatory requirements each year, it can be overwhelming for companies to manage and comply with all of the regulations. The cost of non-compliance is too high to ignore, so companies must formulate a plan to ensure and maintain compliance. Utilising a payroll provider can help take the compliance burden of auto enrolment, HMRC, and GDPR and ensure your company is following all regulations and is maintaining compliance with all of the regulations. To learn more about how payroll providers can help, click here