Payroll Trick or Treat?

Think you know payroll and pensions? Test your knowledge with our fiendish Halloween quiz!


Trick or Treat: Employers only have to keep payroll records for the current tax year.

TRICK! Employers must keep records of payment and deductions for a minimum of three years from the end of the tax year they relate to. Records include leave, sickness, tax code notices etc. With Payroll Junction’s software, these records will always be at your fingertips.


Trick or Treat: Sole director companies with no employees don’t have to worry about pensions auto-enrolment.

TRICK! While sole director companies do not have automatic enrolment duties to perform, they still need to let the Pensions Regulator know that Auto-Enrolment does not apply to them. Payroll Junction’s outsourcing service will ensure that you’re always on top of your legal responsibilities around pensions and payroll.


Trick or Treat: Workers are entitled to bank-holiday pay even if they don’t usually work that day.

TREAT! All workers are entitled to Bank Holiday pay, regardless of whether the bank holiday falls on one of their working days or not. For example, if an employee’s usual day off was Monday, every time a Bank Holiday fell on a Monday, they would be entitled to either be paid their apportioned entitlement for it, or to take the apportioned time back in lieu (depending on their contracts). Outsourcing your payroll to Payroll Junction means all the complicated bank holiday calculations are done for you.


Trick or Treat: It’s a legal requirement to have your payroll data backed up.

TRICK! There is no legal requirement to have your payroll data backed up separately. However, if you encounter IT problems when you’re trying to process your payroll, it can result in staff not being paid. So make today the day you use Payroll Junction to back up your payroll data – Halloween is scary enough as it is without dealing with a mob of angry employees!


Trick or Treat: You can give your employees gifts worth up to £50 tax free

TREAT! You can give your employees tax-exempt gifts, including shopping vouchers, of up to £50 in value! There are some conditions to meet, but the Payroll Junction team can advise you of how to meet the eligibility criteria for these trivial benefits.


Trick or Treat: All employees must be enrolled once onto a pensions scheme

TRICK! Employees must be re-enrolled onto the pension scheme every three years, and you can be fined by the Pensions Regulator for forgetting to do this! Here at Payroll Junction we’ll make sure that you are always fully compliant with all pensions regulations.


Trick or Treat: Any employee can be enrolled in a salary sacrifice pension

TRICK! You can only make a salary sacrifice arrangement if the amount sacrificed doesn’t take your pay below national minimum wage. This means anyone on NMW cannot be in a salary sacrifice pension, and other employees must maintain a pay of at least NMW or higher after salary sacrifice.

Avoid any spooktacular disasters by outsourcing your payroll to us here at Payroll Junction. Get a quote today