How is the National Minimum Wage monitored in the payroll system?
For National Minimum Wage compliance:
- The payroll system automatically monitors hourly rates against current minimum wage requirements
- Warning flags appear if an employee's pay rate falls below the appropriate minimum wage threshold
- Different minimum wage rates apply depending on the employee's age
- If a warning appears incorrectly (for example, when an employee's true hourly rate is compliant), this can be investigated
- Employers should ensure all hours worked are properly recorded and paid
- Regular checks should be conducted, especially when minimum wage rates change
- The system accounts for apprentice rates and age-related thresholds
- Warnings should be resolved before finalising payroll to ensure compliance
- Special attention is required for employees under 18, as they have different minimum wage thresholds
- For employees aged 16-17, age verification may be needed when setting up their payroll record