Simply explained, ‘payroll’ is the term used to describe the procedures surrounding all payments made by a company to their employees, including the following:
- statutory payments: Statutory Sick Pay, Statutory Maternity Pay, Paternity or Adoption Pay.
All employers must ensure that they make the right deductions and pay their employees the right amount at the right time; so keeping accurate payroll records is really key to the overall process.
Employers must also adhere to the Pay As You Earn (PAYE) system, which is HM Revenue & Customs (HMRC) method of collecting Income Tax and National Insurance Contributions (NICs).
Her Majesty’s Revenue and Customs (HMRC) is a non-ministerial department of the UK Government that was developed to ensure that the correct tax is paid at the correct time.
Any company that has employees, including directors of a limited company will need to deduct Income Tax and National Insurance Contributions from the wages of employees, whilst also observing the various rates, allowances and limits in existence. If the payments made are either late or incorrect, businesses may incur interest on the amounts, or even a fine.
By TWC keeping a track of your payroll requirements we will ensure that HMRC are kept up to date with the relevant information, this is now done in real time. HMRC require virtually all employers, with very few exceptions, to submit RTI forms online as opposed to on paper, meaning that filing and maintaining records electronically holds huge advantages over the original method of paper filing.
Real Time Information (RTI)
Real Time Information (RTI) is legislation introduced by HMRC (in April 2013) to improve the operation of PAYE. While RTI has not changed the way employers need to calculate PAYE, it does mean that PAYE information will need to be submitted to HMRC every time employees are paid, as opposed to just once a year at Payroll Year End.
Employers who run their own payroll must ensure they are using RTI-enabled payroll software so that they comply with legislation.
Outsourcing PAYE to TWC will mean that we will take care of most of the behind the scenes business for you, though it is still advisable to make yourself aware of the tax changes and how they may impact 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 workers under the Pay As You Earn (PAYE) system, including National Insurance Contribution (NIC) deductions, Income Tax deductions and pension deductions
- Statutory Sick Pay
- prepare all year-end returns
- File and keep the necessary records.
- If you are a new business TWC can register you as an Employer with HMRC and can calculate you payroll using accredited software.
- Submit RTI returns.
- Advice on how much to pay HMRC.
- P45s if an employee leaves.
- End of year tax return.
- P60s for employees when the tax year ends.
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.