Business payroll falls into the most important tasks that your company has to complete every single month. As an employer, it plays a big role in ensuring your staff are happy to continue working – meaning it has to be done correctly and timely to protect your employee’s livelihoods.
Even if it is just a small team that you have working for you, the way you handle payroll does not change. Certain data sets need to be imputed, information needs to be added and reports need to be generated as you finish. HMRC uses wage information and employment data to determine benefits, taxable amounts and other areas, so, understandably, they would take a dim view on problem payrolls and consistently late activities – including penalties for late submissions.
How to Run Your Payroll
There are standards and legal obligations that you are required to abide by when setting up payroll. Making Tax Digital (MTD) is being rolled out by HMRC in stages, with the majority of payroll and accounting software now compatible with the requirements.
Before you set up your payroll, you will need to make sure that the software you use is suitable and that reports are compatible with the accounting software to avoid running the same reports twice. Every employee will need to have payroll entries with a record of pay including gross pay, NI contributions, Income tax, net pay and other deductions.
Payroll gets split into four sections – gross pay, net salary, ad-hoc payments and benefits. Each needs to be recorded individually as they have differing requirements for reporting.
Biggest Problems Within Payroll
Payroll operations can be disrupted by a few common errors which make it quite tricky for people who are not experts in fixing the problem. This can be limited to human errors, non-compliance, security and time and attendance – as well as employee actions.
Sadly payroll is not something that can be put aside whilst you concentrate on other important factors of running your business. Your staff counts on you to pay them on time and to the correct amount they are owed. If you are used to running payroll operations or find the software too complicated, there are experts on hand in your bookkeeping services who take on payroll outsourcing services within their operations.
Not only can they provide expert training on software to help with your bookkeeping, but they can dedicate their services to ensuring that employee pay is on time and correct.
Contact the team at Pebbles Bookkeeping today for bookkeeping services in Manchester and business payroll services to help your business stay on time.