Payroll Services

Payroll is the company’s combination of all of the financial records of their employees’ salaries, wages, bonuses & deductions. It allows businesses to calculate and monitor how much funds are going to their employees and it also allows employees to see how much income tax they are getting.

It is extremely crucial for companies to use payroll, as it allows them to avoid making any mistakes that could possibly negatively impact their company’s image and reputation. Also, payroll has accurate calculations; therefore employees will be getting the right wage that is agreed to them.

As an employer, you will need to register for PAYE if your employees are earning more than the lower-earning limit. Employers must keep their employees’ payroll records safe. It is essential that you collect and keep records of what you pay to your employees, the deductions you make, payments you make to HMRC, employee leave sickness absences, and taxable expenses or benefits. All records must be reported as accurately as possible to HMRC via RTI and if you do not keep records of your employee’s payroll, HMRC may estimate what you have to pay and charge you a penalty of up to £3,000. Hence, it is critical for employees to have a qualified appointed accountant, who can manage the company’s payroll records. This will allow you as an employer to save a lot of time and money on valuable resources, possibly decreasing the business’ costs. 

Every time you pay your employees, your appointed accountant must use its payroll software to; record their pay – include their salary or wages, calculate deductions from their pay, such as tax and National Insurance, calculate the employer’s National Insurance contribution that you’ll need to pay on their earnings above £183 a week, produce payslips for each employee and report their pay and deductions to HMRC. HMRC can also offer you a fine for late filing notice, therefore it’s essential your accountant reminds you of the deadlines so you are aware of when to submit payroll.

Whether you’re a sole trader, a limited company with a single director, a partnership, or a large corporation, contact our accountants today.