UK Payroll - Calculate national minimum wage to 4 decimal places to avoid false positives.
As of this month, Xero is starting to check for national minimum wage for all employees which I am all for.
However it is very annoying to have several employees flagged as not being paid the NMW when it is entirely down to Xero's rounding. See attached screenshot.
In this example, an employee gets paid for 6.5 hours at £12.21. Xero pays them £79.36 (rounded down from £79.365).
Xero's own NMW checker then flags this as below NMW because £79.36 is below £79.365.
Please can a check be brought in, that if it is just because of Xero's own rounding, then we shouldn't be warned about it, because there is literally nothing we can do to fix it.
I'm all for being warned if it is wrong, and don't want to turn it off, but don't want to be warned for something beyond my control, and in essence correct.
Thanks for sharing your feedback about NMW calculations and how this is impacted by rounding.
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Hannah Cyrus
commented
I agree, I am having the same issue. I enjoy the alerts but only for actual issues not ones that are incorrect essentially.