Payroll Services in Manchester
What is payroll?
The official definition of the term “payroll” is a list of employees who get paid within a company and how much they are to be paid.
Running payroll involves calculating how much your employees need to be paid, along with fulfilling the reporting requirements for HMRC. You also need to ensure that you are paying the correct tax and NIC that needs to be deducted from both the employee and the employer, reporting the employee pay details to HMRC and then paying employees their net pay.
What is included in a payroll service?
Payroll services differ from small business payroll providers to large multi-national payroll providers.
Typically, payroll packages will usually include:
- Data entry
- Tax Calculations
- National Insurance
- PAYE
- Auto-Enrolment
- Pensions
- RTI provided to HMRC
- Payslips
- Official documents e.g. P45, P60 and P11D
- Reports
- End of year summary
- GDPR compliance
Why is payroll outsourced?
There are many benefits to outsourcing payroll services.
Outsourcing payroll helps companies save both time and money, letting them focus on growing their business instead of spending long hours on administrative work processing payroll.
In-house payroll can be incredibly costly for companies, with training and investment in the latest software. They also require the individual processing the payroll to have a thorough knowledge of the PAYE tax system and ensure that the payroll process is 100% accurate and reliable.
Managing payroll services in-house often requires an individual, or a team, with a thorough knowledge of the PAYE tax system. If your business doesn’t have these skills in-house, you can organise your payroll by fully outsourcing it to an accountant, so you don’t need to worry about any of this.
Outsourcing payroll also means that the stress and worry of keeping on the right side of HMRC is taken care of by trained accountants with in-depth specialist knowledge.
Companies don’t have to worry about compliance and the ever-changing regulations and legislations which if not adhered to, can cost thousands.
How much does outsourcing payroll to Quay Accountants cost?
The cost of outsourcing payroll services varies between employees and directors and depends on payroll frequency and total number of employees. On average, however, it works out at around £6 per employee. You’ll pay a little more if you need additional payroll services such as auto enrolment.
Indeed it will cost you money to outsource your payroll, but in comparison to the costs associated with fines and penalties from easy mistakes made by workers who aren’t trained and experienced payroll professionals, outsourcing payroll will actually save money and give you peace of mind that your payroll is in safe hands.
Quay Accountants work with employers to determine the right setup for their business amd can even offer it alongside other accountancy services.
What accounting software do you use for payroll?
At Quay Accountants, we use Payroll Manager, which is HMRC recognised RTI compliant payroll software.
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Payroll - Frequently Asked Questions
How is payroll calculated?
Calculating payroll involves a number of steps beginning with determining how much gross pay an employee is due.
Employees will either be paid on an hourly rate of pay or an annual salary. An employee on an hourly rate of pay will be paid a wage based on the number of hours they work, so the employer will need to note down how many hours the employee has worked, through collecting a timesheet, in order to work out their gross pay for the payroll to be ran.
For salaried employees, there's usually very little to do as most receive a fixed wage each time they get paid.
To calculate the net pay which will get paid to employees, you deduct any statutory and voluntary deductions from the gross pay.
How do you prepare payroll?
Each payroll period, whether that be weekly, fortnightly or monthly, your business will have to complete a number of actions to ensure the payroll is correct and meets HMRC's PAYE obligations.
HMRC require that the below steps are completed on HMRC-approved payroll software, such as Xero.
- Record the gross pay of all employees
- Calculate all deductions - deduct the applicable amounts for any relevant statutory or voluntary deductions. Statutory deductions are required by law, for example PAYE, National insurance, student loans etc. Voluntary deductions could include things like health care and parking fees
- Calculate the amount of National insurance contributions you will need to pay as an employer
- Produce payslips for each employee
- Report pay and deductions to HMRC - Send an FPS to HMRC on-or-before the date you pay your employees
Why is it called payroll?
What is the difference between payroll and salary?
Salary refers to the the amount of compensation an employee earns for their work.
Whereas, payroll is the process of which a salary is paid to employees.
Is payroll part of HR or accounting?
Naturally, payroll spans across both HR and accounting. Running a payroll tends to be done by accountants due to their accounting and taxation knowledge and experience of keeping compliant with HMRC.
Day-to-day, HR is responsible for dealing with a number of employee queries, such as employee working hours.
On the other hand, it's not hard to see why payroll is part of HR, with it being an employee-facing function. HR deal with a number of employee requests and issues such as holiday pay entitlement, changes to pay, furloughed staff and employee working hours.
Is payroll the same as accounting?
Can I do payroll myself?
Yes you can do payroll yourself. You will need to make sure you are using payroll software approved by HMRC and it's very important that you are knowledgeable in the ever-changing rules and regulations of payroll.
Payroll can be troublesome for a non-specialist to process, therefore we advise hiring a professional with the experience and knowledge to avoid wasted time and potential mistakes.
Who we serve with payroll services?
- limited companies
- self-employed
- small businesses
- start ups
