Payroll accounting can seem like a headache, especially when you have so much to do as a business owner. However, it is a crucial part of your business, and a good payroll practice will help you build a reputation among your employees and your customers. It is your duty to pay your employees every time the payday comes around. 

What is the Purpose of the Payroll System?

Your payroll Gateshead system is not just about calculating how much you need to pay your employees; it is also about monitoring employee’s holiday, bonuses, sick pays, and more. Apart from that, every time you are paying your employees, you will need to provide information about the National Insurance and tax to the government system. If you fail to submit the information on time or submit inaccurate data, you may face fines. Some of the important things you need to keep in mind are –

Register Yourself as an Employer – As soon as you hire someone, you have to inform the HMRC about the hiring at least four weeks before you make the first payment to them, which is more than £112 a week. But, if the raise the pay of the employee beyond the threshold, you will need to register yourself. 

File All Employees Details – You need to collect employee basic information such as name, address, NI number, birth date, and more for record purpose. The employee needs to have a P45 in his or her name with all the details of its past and existing employment details.

Report Payroll to HMRC – You will be required to information such as gross pay, deductions, any statutory pay, pay dates, and the joining and departing dates, if applicable. This information has to be submitted every time an employee gets paid.

Information on Additional Deductions – You can only make deductions from the employee’s pay if you are allowed to by law or with the consent of the employee for pension, holiday pay scheme, loan payments, union payments or any pending corrections from last payslips. 

PAYE Deadlines to Follow

It would help if you kept in mind that HMRC has enforced deadlines that need to be followed by all employers. Some of the important ones to remember are that Tax and NI need to be submitted by the 19th of every month for manual and 22nd when done electronically. Every employee should receive a P60 by 32st of May each year. Any additional benefits offered to employees should also be provided to them by 6th of July each year.

When the payroll system of a company is run efficiently, it can offer a lot of valuable information to you and also to your employees. You will be able to evaluate your total employee expenses and also monitor individual employees. Using Accountancy Services North Wales can help you get all of the specific tasks done right on time and efficiently. It will also provide you with more time to expand your business and to think about ways to improve your services. 

Abe Watson