The payroll is clearly a vital part of the overall accounting routines of a company. However, it is generally regarded as being slightly separate from other accounting functions. This is partly because it is a specialised area of expertise and effectively self contained. Also, payroll work is highly confidential so information relating to it is usually restricted to just a few select people working in payroll and human resources (HR). For these reasons the payroll function is often seen as sitting somewhere between the Accounts Department and the HR Department.
We can process your payroll either as a stand alone operation or alongside your bookkeeping routines. If the payroll is processed as a stand alone operation we will provide you with the relevant journal entries so that you can enter them into your general ledger and complete the trial balance. Also, we can complete all the activities relating to your payroll from start to finish or, if preferred, you can carry out some of the administration yourself. We aim to be as flexible as possible to meet your needs.
For most companies payroll processing is either weekly or monthly but any payroll processing period can be catered for. If, for example, you operate a fortnightly or four weekly payroll this is no problem. We will agree a suitable timetable with you for receiving payroll input and processing payroll data so that everything runs smoothly. All statutory payments and deductions will be done as part of the ‘gross to net’ calculation which is the means by which we arrive at the ‘net pay’ figure for each employee.
Computerised software is used for processing our client payrolls so we are able to give you a range of payslip options. These include plain paper printing, standard payroll stationary and security payslips. If desired, payslip details can be e-mailed to your HR department or direct to your employees. All payslips are fully itemised enabling employees to see a breakdown of their gross pay into the various pay elements.
Payments to employee’s can be made in various ways. If your employees receive cash payments this will obviously need to be done by yourselves. Payments can also be effected by cheque which can be done either by us or yourselves. The most popular and efficient way to pay employees is by electronic means. This is usually done via the BACS system but payment can also be made by bank transfer. The majority of companies prefer to handle this type of payment option themselves but if you do not have the facility to make electronic payments we may be able to do this for.
We are happy to deal with all payroll communications involving HMRC on your behalf. This includes the issue or receipt of various information such as new starters, leavers, tax code changes, deductions from earnings orders, student loan repayments, statutory maternity pay, statutory paternity pay, statutory sick pay and so on. We can also answer any enquiries that HMRC may have in connection with your payroll. Following the introduction of ‘real time processing’ (RTI) some of the burden of year-end payroll processing has been spread throughout the tax year by incorporating it into the weekly/monthly online submissions. However, it will still be necessary to issue P60s (certificates of earnings) to your employees after the end of the tax year.