A Guide To Efficient Payroll Management

Payroll meeting milton keynes

Are you new to payroll? Or maybe you’ve been working at it for a while but are finding it hard to keep up with the processes and requirements. In this blog we’ll give you some valuable tips for payroll management. MW accounting are experienced chartered accountants in Milton Keynes offering a range of financial services including payroll. Our aim is to make your work life easier, ensure everything runs smoothly, and keep you on the right side of compliance.

Let’s Start With Payroll Software…

Getting the right payroll software supplier is the first step to making your process streamlined. There are lots of options out there, so it’s worth doing some research into their costs and functions to see which will best suit your business. Moneysoft is a good option for small businesses. It’s affordable and easy to use, with straightforward data input and easy editing, as well as providing up-to-date legislation. If you’re looking for a free alternative, the HMRC Basic Tool package would be a good place to start.

Payroll Running Time

You can choose whether you run your payroll weekly or monthly. Most commonly, businesses prefer to use a monthly payroll. Although a weekly payroll may be attractive to employees, it’s worth considering the cost implications of this. Having a weekly payroll would mean 52 payruns in the year, which in turn would increase admin time and accountancy fees. This includes ensuring all employees are not only paid but get their weekly payslips. By choosing a monthly payroll, you can reduce this down to 12 payruns for the year.

Things To Remember When Setting Up A New Employee

All new employees will need to complete the HMRC starter checklist and provide you with the information requested to ensure the correct tax code is used. It is also the employers’ responsibility to assess whether employees will need to be enrolled in a company pension scheme. Unless they are exempt employers must automatically enrol employees into a pension scheme, it is then up to them if they choose to opt out. You’ll find there are lots of good pension schemes out there, but one to consider for small businesses is NEST. NEST is backed by the UK Government and is free to administer, making it a popular choice.

HMRC And Payroll

Dealing with HMRC and payroll can be a maze of regulations and deadlines. Every employee’s pay and deductions must be accurately reported to HMRC via a Full Payment Submission (FPS), a task made easier with dedicated payroll software. This can also help with making payments and submitting PAYE on time. All payments must be made by the 22nd of the following month. HMRC will also carry out random checks to make sure Minimum Wage amounts are being applied. If you have any employees who are on Minimum Wage, it’s your responsibility to keep up with any changes made coming into the new tax year.

If you’re looking for some support with your payroll, get in touch with our experienced accountants in Milton Keynes today and find out more about the payroll and accounting services we offer.