What information must employers report under the Real Time Information (RTI) system?

Employers must report employees' pay, tax, and National Insurance contributions under the Real Time Information (RTI) system. This requirement is critical because the RTI system was introduced to streamline the reporting of payroll information to HM Revenue and Customs (HMRC) in real time. By doing so, it enables HMRC to receive accurate and timely data regarding each employee's earnings and the taxes withheld. This system aims to ensure that tax records are updated each time employees are paid, thereby improving the efficiency of tax collection and administration.

The reporting of pay details under RTI is essential for various reasons, including the accurate calculation of tax obligations, the management of employee contributions to the National Insurance system, and the ensuring that employees receive the correct benefits and tax credits based on their earnings. This real-time data helps to reduce errors and discrepancies in tax reporting and ensures compliance with tax regulations.

Other options, while they may relate to employer obligations or employment practices, do not capture the essence of what is specifically required as part of the RTI reporting obligations. For example, reporting employee benefits and allowances, total revenue, or work hours may be relevant for different aspects of payroll management or business operations, but they do not constitute the primary information that needs to be reported