Payroll
Processing payroll doesn’t have to be a headache. Our experienced payroll team provide efficient payroll management, so you don’t have to worry, and your employees will always be paid and taxed correctly.
Get StartedWhat is payroll?
The definition of ‘payroll’ is “a list of employees within a business and how much they should be paid.” It is a vital part of any business that has employees. In order to:
- Calculate how much your employees need to be paid
- Work out how much tax, national insurance, student loan, attachment of earnings and other amounts need to be deducted from their gross pay
- Report employees pay details to HMRC
- Provide you with the correct information to pay your employees
What are the different elements of payroll?
It’s important to know what details are needed in a successful payroll system, even if you are intending to use our expert payroll services.
Employee details
Before you can add an employee to your payroll, you will need some key details like their name, address, national insurance number, and salary.
Employee hours
If your employees are paid on an hourly rate, you will need a system in place that monitors the hours they work to ensure they are paid the right amount. For employees that are on a salary, it might be best to monitor when they are working to make sure they are adhering to their contracted hours. Sick days for each employee may also need to be logged, depending on your company, as well as any overtime they have worked.
Salaries, wages, and net/gross pay
You need to record whether your employees are on a salary or hourly wage, as this determines how their pay is calculated. A salary is a consistent, set pay that is provided to employees every month. The payments are based on a yearly amount and divided into 12 individual payments. By contrast, a wage is an amount based on the hours the employee has worked instead of an annual fixed amount.
To calculate their pay in a specific period, you will set an hourly wage and multiply that number by the number of hours they have worked. On your employees’ payslips you will need to include their gross and net pay. Gross pay is their total pay within that time frame and net pay is the amount they get after tax and other deductions. You need to make sure that your employees are being paid the National Minimum Wage.
Extra payments
Depending on the industry your business operates in, employees might earn commission and/or tips on top of their basic pay. These need to be accounted for in payroll.
Tax and deductions
Where applicable, the employer must deduct tax and national insurance from the employees gross pay. It is the employer’s responsibility to make sure the right amount is taken from payroll and paid to HMRC either monthly or quarterly, depending on the size of the business. If this is not done on time, you could be charged a penalty.
Employee benefits and other deductions
Your business might offer benefits packages to boost morale and motivation. This might include private healthcare, a pension package, and employee discounts as well as having to account for other deductions. These need to be processed correctly through the payroll as they will impact the amount employees are paid.
Why outsource your payroll?
Payroll processing is essential to keep your business running smoothly, but it can be time consuming, complex, and stressful, especially for growing businesses who can go from a small number of employees to a larger number over a very short time.
Outsourcing your payroll services to our team will allow you access to highly experienced accountants who are always up to date with the latest legislation and can adapt to changes quickly and effectively. By outsourcing, you can feel confident that your business is fully compliant, and your employees are paid correctly and on time.
How we can help you
Jan McDermott Chartered Accountants specialise in all areas of accountancy and tax support for businesses, including tightly managed payroll services. If you need help and support with payroll for your business, our expert team will be on hand to offer assistance with everything relating to payroll and PAYE. This will free up your time and your team’s time in-house to focus on running your business and avoid unnecessary stress.
Get in touch with our specialists today to take control of your payroll.
Alan Robson
They provide us with a fully outsourced finance function so that our own team can focus on our business. They implemented Xero software from day one of the company meaning that we have real-time visibility of our business at all times, The monthly management accounts meetings we have with Jan really add value to decision-making and strategic planning and we wouldn’t be without them.
Peter Broxton
Their professionalism, expertise and client care are outstanding and they have supported our growing business no end. They look after everything from our bookkeeping, VAT, annual accounts, as well as claiming Research & Development tax relief, preparing budgets and forecasts and assisting with grant claims. The whole team are always responsive, friendly and reliable and we wouldn’t hesitate to recommend them to anyone looking for a trustworthy and efficient firm to look after their business finance requirements.
Scott Hackett
I moved my accounts over to Jan at the beginning of the year and have been extremely impressed with her attention to detail and precision. She’s made it easy for me to understand and manage all the key aspects of my accountancy, as well as offering useful suggestions of ways to improve and make things work more efficiently for me and my business. I’d highly recommend Jan and her team to anyone looking for professional, friendly, and reliable accountants that truly get to know you and offer a tailored service.”
Alistair Evans
Jan McDermott & Co have been our accountants for over 15 years and have not only ensured our accounting records are accurate and legal, but also provided us with first class advice to help us grow. They recommended our move to Xero accounting software which has revolutionised our business, allowing us to create predictable income through the use of Go Cardless Direct Debits, and streamlining our day to day accounting operations. Jan and her team are friendly, easy to work with and take time to understand a particular problem or situation. I wouldn’t hesitate to recommend them to any business that wants an accountancy firm they can grow with and depend on.