Operating a business is no easy work. If you’re a lone wolf, you’ll often find yourself in situations where you’re severely overworked. On the other hand, when your business starts taking off and you start hiring employees, you’ll need to take care of several other responsibilities, including payroll.
Payroll can suck the life out of most entrepreneurs. It isn’t glamorous or exciting – there’s not one entrepreneur who likes to handle payroll. Like sick pay, corporation tax, and NI contributions, it’s just one of those things you need to do to run your business.
Lucky for you, there are several payroll services that are happy to take care of your company’s payroll needs. You can always outsource payroll responsibilities and focus on growing your business. Their responsibilities include managing the following:
PAYE and Pay
PAYE or Pay as You Earn is a system in which employees are required to pay taxes as they receive income. Deductions for NI and taxes are made throughout the entire year, instead of handing employees hefty tax bills at the end. A payroll service will account for taxes and NI, and clear salaries accordingly.
Don’t mistake pay slips to be a simple courtesy. Every business is legally required to issue one to its employees, including the following details, either in physical or electronic form:
· Gross income
· Net income
· Payment method
A payroll service can help you generate payslips in a simple, fast, and efficient manner.
Ensuring that your company complies with the latest payroll legislation is the highest priority. The annual national budget could always change tax rates, minimum wage rates, or NI contributions, thus requiring you to stay on top of these updates. Sometimes, there may be other important alterations, which could completely change the way your company processes payroll.
This is a time-consuming and challenging affair, not to mention the fact that failing to implement these updates could result in significant non-compliance fines and penalties. In such cases, it makes sense to engage payroll service providers for this task.
Apart from NI and taxes, you’ll also have to account for the following deductions in your payroll. These include:
o Voluntary pension top-ups
o Social group or sports subscriptions
o Union subscriptions
o Student loan installment payments
Benefits and Expenses
Are your company’s sales team members driving work-issued cars? Do you have a system where they pay expenses out of pocket before it’s reimbursed by you? You can easily process employee benefits and expenses via payroll.
Maternity, Sickness, and Holidays
While your company might have its own policies regarding maternity, sick, or holiday pay, you will still require payroll services to process these payments. For instance, statutory sick compensation has to be paid for at least 28 weeks to qualified workers and employees. Since this is the company’s responsibility, you must manage this process, which can be easily done with the help of a payroll service.
For most emerging companies, payroll tasks can be an unnecessary drag on their productivity since it requires a significant amount of time and resources. Even minor non-compliance issues can cost your business dearly and botching payroll up is the fastest way to earn your employees’ ire.
Therefore, consider outsourcing your payroll need to dedicated payroll service providers. They will get the job done and protect you from unnecessary fines and penalties at a fraction of the cost.