Is Your Nursery Payroll Putting You at Risk?
Running a children’s nursery is no small feat. Between meeting staffing ratios, maintaining safeguarding standards, and keeping on top of parent communications, payroll shouldn’t be another source of stress. But for many nursery owners, it’s becoming an increasingly critical area to get right.
Rising Compliance Pressure for Nurseries
With the newly formed Fair Work Agency stepping up enforcement to protect workers, employers are under closer scrutiny than ever. Recent figures from the Department for Business & Trade revealed that a significant number of nurseries were named and fined in the latest “Naming Round” for failing to pay the National Minimum Wage.
For many settings, these breaches aren’t always deliberate — but the consequences can still be serious. Even small oversights can lead to underpayments, backdated wage bills, and reputational damage.
Common Ways Nurseries Can Fall Below Minimum Wage
Nurseries can unintentionally breach minimum wage legislation in several ways, including:
- Uniform costs: Requiring staff to wear specific colours or clothing without reimbursing or factoring in the cost. If the cost of uniform effectively reduces their take-home pay, it can push wages below the legal minimum.
- Unpaid time: Expecting staff to arrive early or stay late without this being recorded as paid working time.
- Training and induction: Not paying for mandatory training sessions, meetings, or induction hours.
- Deductions: Taking deductions from pay (e.g., for meals or equipment) that bring wages below the National Minimum Wage threshold.
These may seem like small operational details, but they can have a big impact when it comes to compliance.
How Langricks Chartered Accountants Can Help
At Langricks, we understand the pressures faced by nursery owners and managers. Our dedicated payroll service is designed to take this vital but time-consuming task off your plate, so you can focus on running your setting.
We’ll ensure:
- Your team is paid accurately and on time
- HMRC submissions and pension contributions are handled correctly
- Holiday pay, starters, and leavers are managed smoothly and efficiently
- Potential compliance gaps are identified before they become a problem
If you’d like to protect your setting from costly mistakes and free up your time, let’s schedule a quick call to see how we can support your nursery.
Author: Tony Whibberley-Cross MCIPPdip
Payroll Manager
Langricks Chartered Accountants
