5 Things Small Businesses Need to Know About Payroll

Small Businesses For Filipinos-Negosentro

Negosentro| Are you ready to start employing people in your business? Have you found the perfect staff members to take your business to the next level? If you are looking at hiring or have recently made some new hires, you need to think about payroll Small Businesses. 

Paying people may seem simple and, in concept, it is. But you cannot ignore all of the regulations and procedures. In order to stay compliant, there are certain things you need to know about payroll.  

Payroll management can be difficult at first, but if you get the right software and the right professional help from the start, you will soon have the process under control. Here’s what you need to know about payroll. 

What is Payroll?

According to Hazlewoods, payroll is the process of paying an employee while calculating the relevant bonuses, benefits, deductions, and allowances that are required by HMRC, and reporting the payments, too.

  1. You Must Be Registered With HMRC

In order to be able to pay people, you need to be registered with HMRC. You should do this in advance of employing staff. Typically, you will need to register at least four weeks in advance of employing anyone. Bear in mind that the process of registration is not instantaneous, so you need to set aside enough time to complete it.  

  1. You Need to Report Pay and Deductions 

After registering with HMRC, you need to complete the relevant forms to report your payments and deductions. Check the deadlines for when to send the forms each time you make a payment. You will also need to report any changes in employees or employee situation to HMRC in order to keep records up to date. Deductions payable include tax, national insurance, pension contributions, student loans, and child maintenance.

  1. You Need a System

In order to set up and maintain payroll, you will need a system and a variety of information in order to set up the system. You’ll need details about the employee, including name, address, and national insurance number, and will also need a system in place to properly record and pay for the hours in the employee’s contract. Some employees will be full-time, some part-time, and others on an hourly rate.  

  1. Calculate Benefits in Kind

As well as a basic salary, you may offer benefits to employees. Benefits in kind can include company cars, medical cover, travel allowance, or accommodation. There are also tax-free benefits in kind that can be made, including payments into a pension, meals, or relocation expenses Small Businesses.

  1. Get The Payslips Right

Every employee is entitled by law to a payslip each time they get paid. The payslip must include details of the gross pay, deductions, net pay, and how the payment has been made. 

Take these tips into consideration and also understand that investing in good payroll software and getting professional advice from accountants will mean the difference between a headache, and a simple payroll process Small Businesses. 

 

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