Chapter 16 Blog: Payroll Accounting

http://www.cv-library.co.uk/news/1527/Jobseekers-warned-of-employers-‘cheating’-minimum-wage-rules-.html

Summary

The article that I have chosen to base my blog upon, dealt with employers cheating employees in terms of wages. In 2009 research was conducted by TUC (Trades Union Congress) which discovered that around 1.5 million Britons above the age of 21 were being paid under the countries national wage which is 5.73 pounds an hour. The exploitation of employees can be mainly seen within retail, construction and engineering jobs. Like in the case of a 32-year old construction worker, name unknown, who was only paid a very low 4.10 pounds an hour. Currently organizations like HM Revenue and Customs are doing all they can to crack down on employers employing an ethical practice, but according to Brendan Barber general secretary at TUC they could always implement a special hotline to inform workers of their rights. Although currently the situation seems dim for these workers, for every cloud there is a silver lining, and for these employees they will only have to wait as the national wage is expected to be increased.

Connection

This article concerning the underpayment of employees by employers connects with Chapter 16 Payroll Accounting in one main way, gross pay or in greater detail wages. From the perspective of the employee he will constantly see a low payment figure on his wages, while from the perspective of an employer he will probably see an increase on the payment figure on his wages. Employees don’t have to only worry about the amount given to them by the employer, their gross profit, but they will also have to worry about the tax deductions that are inevitable.

Reflection

Firstly I would just like to say, that after reading this article I strongly hope that any of my future employers will not try to underpay me. Employers should not have the right to underpay employees, especially in this economic crisis where money is the most covenanted object. Money runs this world, and by employer’s underpaying employees they are only furthering homelessness and the likelihood of another depression as less money is being circulated throughout the economy. The blame should not be entirely put upon the employer and his unethical practice, as an accountant should be intelligent enough to notice a small wages figure and be ethical enough to report this to various wage dealing agencies. An accountant needs not only the skills taught within a classroom, but also the ethical practices taught throughout life.