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Minimum wage report rounding issue

The minimum wage report shows that an employee receiving minimum wage is being underpaid.

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Written by Onyema Onyejekwe
Updated over 4 months ago

If the minimum wage report displays that an employee earning minimum wage is being paid less than expected, rounding differences during calculation may have slightly reduced the actual payment. This reduction then flags the employee in the report.

For example:

  • If an employee is paid £12.21 per hour for 5.25 hours of work:

    • Expected pay: £12.21 × 5.25 = £64.1025

    • Actual pay (rounded): £64.10

  • The Minimum wage report calculates the hourly rate by dividing the pay by hours worked:

    • £64.10 ÷ 5.25 = £12.2095, which is rounded down to £12.20.

    • As a result, the report incorrectly identifies the employee as being paid below the minimum wage.

To resolve this, you need to add a manual timesheet to increase pay. Add a manual timesheet entry of £0.01 for the employee in the affected period. For changes to take effect, re-run the minimum wage report.

The report will no longer flag the employee as being paid below minimum wage.

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