We offer monthly and weekly payroll services, as well as completing the annual returns. Auto Enrolment, pension declaration services and pension uploads.

What’s involved with payroll?

Having good payroll practices in place will help you keep track of your monthly payments to your employees. It will save you time having to deal with mistakes to do with pay or your staff chasing you for their wages. In practice it means:

  • Registering new employees with HMRC
  • Ensuring staff report the correct hours they work
  • Making sure wages and other payments are made on time
  • Deducting income tax and national insurance contributions
  • Dealing with statutory pay such as parental leave sick pay
  • Sending out tax forms such as P45s and P60s

What happens if you do not send payments to HMRC?

As an employer, you are responsible for making any income tax and national insurance deductions from your employee’s wages. There can be penalties if you pay your staff and do not send an FPS to HMRC or if it is late. However, HMRC wants to encourage employers to keep their records up to date rather than penalise them for not doing so. So, first of all, they will send you an alert if payments are late or anything has been wrongly reported. HMRC have a vested interest in you getting your house in order and will only fine you if you fail to do so.

How does payroll work?

As an employer, you are responsible for completing certain payroll tasks each month. To do this you have a choice of running payroll yourself using payroll software or outsourcing it to your accountant or payroll provider. Whichever option you choose you it’s payroll’s job to:

  • Record your employee’s pay – their monthly wages as well as things like maternity and paternity payments.
  • Work out how much income tax and national insurance needs to be deducted from your employee’s pay.
  • Calculate the amount of employers National Insurance that you need to pay.
  • Create payslips for your employees.

Your payroll software or payroll provider will then create and send a Full Payment Submission (FPS) to HMRC summarising all the payments and deductions. In the following month you will be able to:

  • Claim back any statutory pay such as sick pay, maternity or other statutory parental leave payments by sending an Employer Payment Summary (EPS).
  • View how much you owe HMRC and make payments to them.