As soon as your business employs somebody, you need to meet your obligations as an employer. Payroll Services will be one of the aspects to consider. This affects anyone who employs at least one person – including individual directors who pay themselves via their limited company.
Payroll isn’t confined to limited companies. Services are needed when sole traders and partnerships employ someone too.
Good news! Payroll can be much easier than you think!
Our friendly experts are helping businesses throughout Dunstable, Leighton Buzzard, Houghton Regis, Luton and beyond. We hope that the payroll information below will help you too.
Payroll is More Than a Payslip!
Of course, paying employees is the main goal of payroll services. But – it’s paying everyone the right amount that counts. There are several aspects to take care of:
There are laws and legislation which dictate how much Income Tax and National Insurance should be deducted from each person’s salary and paid to HMRC.
2. Pension Contributions
The new auto-enrolment Pension Scheme is impacting on businesses. Minimum contributions are being introduced gradually over time. You will usually pay pension scheme contributions either as a fixed amount or based on a percentage of earnings. These percentages are set to increase over time. Currently a minimum of 1% for employees and 1% for employers are paid into the chosen pension scheme. Further information about auto-enrolment is available at the Pension Regulator’s website.
3. Employee Changes
From new joiners to leavers and employees on sick/maternity/paternity leave… staff changes can affect the payroll system operating within the business. You need to be aware of the current requirements and levels at all times.
Payroll can be run weekly/fortnightly/monthly depending on the needs of your business. Linked to payroll services, we can offer advice for directors of companies about taking tax efficient wages alongside dividends.
Payroll and Beyond…
Many businesses especially value the services beyond the number crunching. Our clients enjoy peace of mind due to the extra support that’s available from our Payroll Services team, such as:
1. Pension Schemes
We can provide full support and help to set up your pension scheme, including:
– providing letters and information to your staff about your auto-enrolment
– enrolling employees in the chosen pension scheme and completing your compliance
declaration – which is a legal requirement
– updates on changes with the workplace pensions
2. PAYE Updates and HMRC Advice
You’ll receive monthly information regarding PAYE and National Insurance amounts due. Plus we offer support and advice about how to make payments to HMRC in the correct time frame to avoid penalties. Plus, we’ll provide P45’s and P60’s when required.
3. Employment Allowance Claim – up to a maximum of £3,000
Employers are entitled to claim £3,000 allowance each tax year. This allowance helps towards your contributions reducing payments throughout the year. Are you claiming yours?
4. HMRC Liaison
Do you need to raise a query with HMRC? Maybe ask questions about reclaiming statutory payments such as Statutory Maternity Pay? Or have queries regarding PAYE payments and account details? Help is at hand! We will call HMRC on your behalf with any queries regarding your payroll scheme.
5. Real Time Information Reporting (RTI)
RTI was introduced in April 2013 – the largest change to PAYE since it was first introduced in 1944. We track and send submissions to HMRC ensuring they are sent on time in line with RTI requirements. This is a legal requirement of employers and if PAYE information is not reported on time it is subject to penalties.
6. Legislation Updates
Notification of changes in the law like the change in minimum wage rates and ensure that as an employer you are in line with the law. The National Minimum Wage is set to increase again in April 2019:
– 25yrs+ over will increase from £7.83 to £8.21 an hour.
– 21-24yrs will increase from £7.38 to £7.70 an hour.
– 18-20yrs will increase from £5.90 to £6.15 an hour.
– Under 18yrs will increase from £4.20 to £4.35 an hour.
– Apprentice will increase from £3.70 to £3.90 an hour.
Why Outsource Payroll?
To save money and time! These are the key reasons that clients ask us to look after their payroll. Involving our expert support also offers you tremendous peace of mind. Outsourcing ensures that your business:
– complies with current legislation
– avoids late filing penalties
– operates a Payroll system that is accurate and correct
– receive full support with payroll – from wage slips to leavers and starters as well as pensions
and payments to HMRC
At Spicer & Co, we believe that every business is unique. Talk to us about our Payroll Services, without obligation. We’ll offer a flexible and tailored payroll package that allows peace of mind with friendly experts on hand for any questions or queries.
If you’re based in the Dunstable, Leighton Buzzard, Houghton Regis or Luton areas, call in and find out more. We’re always happy to put the kettle on!