What you need to know about payroll and payroll services
Payroll for a business is the means by which it pays its employees for the work they do. Payroll Services describe the means by which that payroll is run, with the usual choices being:
- In-house manually
- In house via payroll software
- Outsourced to an Accountant
- Outsourced to a specialist Payroll Services provider
Towards the end of a payroll period (which could be weekly, fortnightly, monthly etc.) the wages or salary that is to be paid to each employee is calculated with deductions for income tax and national insurance. Arrangements are then made for it to be paid at the end of the payroll period.
In the UK those processing the payroll are responsible for the following tasks to make sure that its employees are paid the right amount at the right time:
- Calculating what each employee has earned during the relevant payroll period.
- Making the necessary deductions such as income tax, national insurance and pension payments.
- The employee will be notified of their earnings for the payroll period via a payslip.
- The wages/salary will be paid to the employee and at the appropriate time the deductions paid over to the relevant bodies.
- A P60 will be issued to each employee on an annual basis to show how much they have earned during the year.
Although some businesses still carry out their payroll manually, most will use dedicated payroll software to make the whole process quicker and more efficient, and will use experienced payroll staff in-house or through an outsourced payroll service solution.
If you wish to discuss payroll arrangements for your own business or are interested in getting a free no-obligation quotation from a leading UK payroll bureau then call or email using the details below.