The term ‘payroll’ is used to describe the practices surrounding the entirety of payments made by a company to their employees, which include the following:
- statutory payments such as Statutory Maternity Pay, Statutory Sick Pay, Adoption or Paternity Pay.
What should you know about payroll?
All employers need to make sure that they pay their employees the right amount at the right time and make the right deductions; as such, maintaining accurate payroll records is vital to the overall process.
As an employer, you also need to adhere to the Pay As You Earn (PAYE) system, which is the method of used by HMRC to collect Income Tax and National Insurance Contributions (NICs).
Established to guarantee that the exact amount of tax is paid at the correct time, HMRC is a non-ministerial department of the UK Government.
All companies with employees, including directors of a limited company are required to deduct Income Tax and National Insurance Contributions from their employees’ wages and be aware of the various rates, limits, and allowances in existence. Fines may apply for those who make incorrect or late payments.
By keeping track of your payroll needs, TWC will ensure that HMRC are kept up to date with the relevant information in real time. HMRC currently require nearly all employers to submit RTI forms online, which means that filing and maintaining records electronically has numerous advantages over filing on paper.
Real Time Information (RTI)
Real Time Information (RTI) was introduced by HMRC in April 2013 with the purpose to enhance the operation of PAYE. Even though RTI has not altered the way employers are required to calculate PAYE, the information has to be submitted every time employees are paid, and not just once a year.
If you are an employer who run your own payroll, you need to make sure you are employing RTI-enabled payroll software in order to conform to legislation.
By choosing to outsource your payroll and PAYE requirements to TWC, we will take care of the boring bits of business for you. However, we advise to nevertheless make yourself aware of the tax changes in order to know how they may impact upon your business.
How could TWC help with company payroll?
TWC will be able to take over the following procedures for your company:
- calculate and pay your employees under the Pay As You Earn (PAYE) system, which includes National Insurance Contribution (NIC) deductions, pension deductions, and Income Tax deductions
- prepare all year-end returns
- Statutory Sick Pay
- If you are a new business, TWC can register you as an Employer with HMRC and use accredited software to calculate payroll
- File and keep the necessary records.
- Advice on how much to pay HMRC.
- Submit RTI returns.
- End of year tax return.
- P60s for employees when the tax year ends.
- P45s if an employee leaves.
If you would like to find out more about the payroll services which TWC offer, please get in contact and we will discuss a bespoke service tailored to your needs.