Managing your payroll as a small business, especially in the United Kingdom, may seem like an easy task at first glance; there are, after all, relatively few employees and the amount of work that is necessary to do it correctly seems quite minimal. However, there’s a lot more to it than that – ask any owner or manager of a small business, and he or she will be the first to tell you that there’s a lot more to it than meets the eye. It’s not just about calculating salaries according to the contracts and agreements; it’s about understanding the law, the regulations, and providing your employees with a correct and beneficial overview. Here is your essential guide to managing your payroll as a small business – the right way.
If you decide to keep the management of the payroll in-house, you’ll need to decide who’s going to be in charge of it. That choice is an important one. In fact, that person should be somewhat of a specialist. Certainly the person should be familiar with the PAYE tax system, and all returns should then be sent to the HMRC. HMRC is also supposed to receive payments of tax and national insurance; depending on the size of your business, this is supposed to happen on a monthly or a quarterly basis.
There are software packages that can greatly help you in your calculations – certainly, the person who is in charge of the payroll will save time and be more efficient. Not only do those software programmes help you with the calculations, they also ensure that all forms and information can be sent to the HMRC electronically.
The government does not remain static, and neither do its rules and regulations. The person in charge of the payroll is therefore required to keep up-to-date with any rule or regulation changes that may directly influence your business’ payroll system.
Exactly because there is more to payroll management than meets the eye, it may be a good option to have your business’ payroll management outsourced to a service that specialises in payroll management. It’s always a good idea, as you’re sure you’re dealing with experts and specialists who work efficiently and remain up to date. Just remember that good communication is essential. Choose the correct service.
Indeed, managing your payroll as a small business is not as easy as it sounds – there are a lot of things you need to be aware (and sometimes wary) of. Luckily, there are many great options out there, and getting professional help – or at least working with a trusted and capable advisor in payroll services UK – is a great start.
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