News
Increased Penalties for Employers Who Fail to Pay Minimum Wage
17 - 01 - 2014
Under new proposals, the maximum penalty for failure to pay National Minimum Wage could rise to £20,000.
Employers, by law, must pay their employees
National Minimum Wage.
The current penalty for failing to pay
Minimum Wage requires employers to pay the wages that are due to their workers,
plus an additional financial penalty to HM Revenue and Customs.
The fine is calculated as 50 per cent of
the total underpayment for all workers found to be underpaid, with a maximum
penalty of £5,000.
Under new proposals, the maximum penalty
will rise to £20,000. The financial penalty will also rise to 100 per cent of
the total wages owed.
If approved, the new rules are expected to
come into force in February 2014.
The current hourly rates for National
Minimum Wage are £6.31 for Over-21s, £5.03 for 18 to 20s and £3.72 for
Under-18s.
Questions
about Minimum Wage?
Foremans can help. Contact us for free
initial advice on 01244 625 500 or send your question to our expert Tax
Advisors here.
