It pays to outsource your payroll
If you employ staff and/or are a Director of a limited company, it is probably best to outsource your payroll to a payroll bureau. It will save you a great deal of time.
If you have no staff but you’re a Director of your limited company, you may be able to calculate your own salary depending on whether you are to be paid enough to have Income Tax and National Insurance deducted. Ask your Accountant for advice on this.
If you have a few staff who are unlikely to be off sick or be on maternity/paternity leave, etc. (unlikely!), then you may decide to calculate your payroll using a computerised program. HMRC have a free payroll tool and lots of information on this subject.
HMRC – Operating PAYE
A payroll bureau will usually charge a very reasonable monthly fee, the amount depending on how many employees you have. The bureau will calculate the monthly (or weekly) salary deductions to be shown on the payslips and paid over to the HMRC, issue monthly payslips, submit the figures to the HMRC and issue staff with yearly P60s, as well as processing and submitting all P45s for starters and leavers.
Ask your Accountant or Bookkeeper if it is a service they offer or if they can recommend a Bureau.
Note: When considering employing a new member of staff remember to take the Employer’s National Insurance into consideration, as it is in addition to the gross wages you will pay them.
Payroll can be complex.
Outsource your payroll.
Outsource your payroll!
- Outsourcing your payroll can save a lot of time
- If you only have a few employees you can use a computerised system – HMRC offers a free payroll tool
- A payroll bureau deals with all staff deductions, P45s and P60s
- Ask your accountant if they can recommend a payroll bureau
Apr 16, 2015