It is tempting to throw around sweeping generalisations when considering what good Employment Tax management looks like and hold them as truth for all companies. However, a single aspect of the Employment Tax function shouldn’t be assessed in isolation without knowing the relevant context. Take these two statements about differing companies:
‘Company A outsource to specialists - they must be managing things well.’
‘Company B have no automation - processes must be inefficient’
To actually gain a good picture of the effectiveness of their management we will have to dig a little deeper.
If Company A has outsourced most manual tasks, it is fair to assume that the specialists have sufficient knowledge and expertise to manage these tasks effectively. But what if the organisation has no robust touch points with the third party vendor? Have they made sure that the final checks and validation come from their business? This can be a sign of ineffective management as there may be a lack of visibility of any errors or misjudgements. It should always be remembered that ultimate responsibility for submitting correct returns and maintaining compliance rests with the company itself.
