If you employ staff or pay yourself as a director, then you will need a (PAYE) payroll service to administer payslips and report to HMRC via real time returns.
what type of payroll services?
Fixed Salary Payroll
If you’re a director of a Limited Company or LLP, then this payroll service is what you will need. As a director, it is likely you will want to pay yourself a fixed monthly/annual tax optimal director salary.
Variable Salary Payroll
If you employ staff in your business then this payroll service is what you will need. Your employees could be paid a fixed base salary withe variable elements added on, such as bonuses, overtime and performance related pay.
how much is accountants payroll ?
It’s crucial that your PAYE and payroll system is correctly set up from the outset. There are a number of steps and bits of information that are needed upfront in order run payroll successfully and without any hitches.
There is nothing stopping you as a business owner in setting up and running your own payroll services as opposed to an accountants payroll service. However, the biggest danger of payroll is making mistakes, no matter how honest they are. And from as little as £5 p/m, you can get an accountants payroll service that takes away the strain and hassle and frees your mind and time to grow your business.
FAQ's on payroll services
Contrary to popular opinion, PAYE payroll can be run monthly, weekly, quarterly or annually. In fact, it can be run for any frequency. Common practice is monthly as this aligns with when you pay your employees.
Obtaining the correct tax code from HMRC is important. This is normally done automatically by HMRC but sometimes errors in your tax code can be made. A wrong tax code can result in over payments of tax.
Payslips are generated and issued when your employees are paid. They can be issued in pdf or other readable formats. Each employee should receive their own payslip. If you watch the video (above) it has a complete section on payslips.
A PAYE Ref No is needed if you are business/employer that needs to run PAYE payroll in order to pay your employees. An accountants payroll service will provide you with a PAYE ref no.
It is crucial your payroll services include RTi (Real Time Information) submissions to HMRC. These take the form of an FPS or EPS. Failure to submit these (monthly if that is how frequently your payroll is run) will result in punitive fines and penalties for your business.
When running PAYE (Pay As You Earn) payroll, as an employer/director you are obliged to ensure the correct income tax and national insurance deductions are calculated, made and paid across to HMRC. An accountants payroll service takes care of this for you.