Payroll is a complicated and extremely important aspect of a business. Unfortunately, it is not something that remains constant. There are regular updates to existing legislation and new payroll laws that come into play. While this can be daunting, there are ways in which one can stay on top of these changes. In this article, we will discuss how one can remain compliant as well as what repercussions could occur if one is not compliant.
How to Stay Ahead of New Payroll Laws
There are constant updates that are made to legislation and laws regarding a variety of aspects of payroll. It is important to ensure that one stays up to date with these changes as a failure to comply with them can have negative repercussions on a business. There are a variety of ways that one can stay updated, including:
- Sign Up For Emails: You can sign up to newsletters and emails that keep you updated on any upcoming changes and what the changes are once they have been implemented.
- Keep An Eye Out for Speeches: It is important to keep an eye out for speeches on new legislation and changes to labour law, etc. It is advisable to make time to watch these speeches as they are made.
- Attend Regular Seminars: While you might know about the new legislation and laws put in place, it is advisable to attend seminars where it is clearly laid out how these changes will affect the payroll process.
- Use Comprehensive Payroll Software: The previous methods of staying updated are slightly outdated and will require a lot of time and effort. Another option one can consider is making use of a comprehensive payroll software system that will automatically update itself with any new legislation and requirements. While it is advisable to still remain informed, it will definitely save a lot of time and streamline the payroll process.
The Dangers of Non-Compliance
There are multiple dangers connected to non-compliance with legislation. Some of the most notable complications that could arise include but are not limited to:
- Fines: Usually enacted upon smaller infractions such as being late with submissions and payments, a company can be fined for their non-compliance.
- Sanctions: A company can be sanctioned if the infractions are serious enough. In such a situation certain penalties and limitations will be placed on the company until they are deemed cleared of their infractions.
- Criminal Charges: If an exceptionally high level of non-compliance has been committed, then the company can be criminally charged. These charges will typically occur if the company has failed to comply with regulations regarding workplace safety, staff management, corporate governance, due diligence, and the like.
Other than the legal implications of non-compliance, a company also stands to lose their reputation and could even experience a loss of business opportunities or current business.
A Manual Payroll Update Isn’t Always Necessary
As was mentioned earlier, a manual payroll update is not always necessary. Certain comprehensive cloud-native payroll software systems automatically stay up to date with the latest laws and legislation changes, ensuring that you always remain compliant. PaySpace is one of the payroll software systems that are always one step ahead of the curve. We have a specialised compliance team that constantly works towards staying updated and ensuring that you are never in danger of non-compliance. We have over 43 countries’ legislation embedded in our software ensuring that you are always up to date in your country! This is especially important if your employees work in more than one country.
Contact us at PaySpace to find out more about how we handle new payroll laws and updates.