The 8 Important Reasons Why You need Payroll Health Check Alongside Audit Reports.

3. Create time for Payroll check

Many a times employers make mistakes, due to the complexity of organizational functions and dynamic legislation leading to penalties being added to any tax or Social Security contributions unpaid, hence such errors becomes very costly for the business.
Concerning the payroll check, many organisations are concerned that undertaking the payroll check will uncover liabilities that will have to be disclosed to the tax authorities since should irregularities be discovered then the employer must put them right and this might include a disclosure of liabilities for earlier periods hence making them shy away from undertaking the same.

However, the employer can mitigate the extent of any penalties charged by taking the initiative and making an unprompted disclosure to the tax authorities if this is appropriate. A full and comprehensive disclosure of any irregularities may prevent the need for the tax authorities visit and the disruptions that this can cause to the organizational operations.

4. 8 reasons why companies should consider a Payroll Health check

• It provides peace of mind for compliant organisations and enables organizations seek for steps to take to remedy problems in case of non-compliance.
• It curbs against interests and penalties if an organisation knows things are wrong and takes necessary steps to rectify before tax authorities discovers. It is important initiative to avoid carelessness and enhance reduction of penalties.
• It puts errors right during the tax year, which could prevent an incorrect return being submitted and avoid potential penalties and interests.
• It leads to voluntary disclosure to the tax authorities of any failures discovered during the payroll review.This may prevent the tax authorities from carrying out an Employer Compliance Review and cost this might cause for the organization.
• Organizations may need to update their agreements and create links with the tax authorities such as on issues to deal with approval notice when for instance they may have changed their procedures and processes, and no longer fully comply with the laid down regulations.
• It keeps up to date with legislative changes to ensure full compliance hence creating a good working atmosphere without disruption for compliant organizations.
• Payroll health check protects an organisation against employee fraud therefore a detailed review could identify areas of risk and find ways of preventing it.
• The tax authorities assess the level of risk at an organisation when deciding the need for Employer Compliance Review. In this regard, organisations can be prepared for this in advance by carrying out their own payroll review.