As we approach the end of the tax year, it is worth giving some time over to think about how small businesses operate their payroll, and what is the most effective method for processing the payroll.
Many small businesses use the HMRC basic PAYE tools, which are very good but do not link to their accounting system, their bank or generate payslips, others use a standalone payroll system which generate payslips but is not linked to their accounting system but is charged at additional cost.
Several accounting packages now provide integrated payroll included in the cost of the accounting system, perhaps now is a good time to review and plan before the start of the new tax year, so that any system proposed for next year can be correctly set up.
Here are 10 tips for payroll processing;
- Ensure any software is correctly set up
- Ensure all employees are paid on time
- Standardise direct payments
- Ensure employees are employees and consultants are consultants
- Ensure bonuses are corrected accounted and taxed
- Maintain employee data and store in one place
- Record and Pay Staff expenses efficiently and correctly
- Tax benefits correctly
- Maintain pension details and payments correctly
- Ensure tax and NI deductions are correct each pay period
Payroll is not just about wages, and using efficient software can save time and money, leaving you time to focus on growing your business. Paying your staff correctly shows that you care about your staff and your business. FD Business offer a range of Accountancy Packages which simplify your accounting processes including Payroll.
If you require tailored payroll advice for your business contact us.