Getting payroll right is essential to running a business effectively. If employees are not paid correctly or on time, then morale will quickly slip. Despite any individual passion for their role or career ambitions, employees still work for money, and even a slight delay can mean missing rent or mortgage payments. Furthermore, it’s a huge waste of time to be attempting to rectify payroll mistakes that should never have happened in the first place.
Accurate payroll also means more accurate books overall, giving a detailed record of the company’s expenses, assisting with compliance and accurately showing the total cost of labour for your business.
Here’s a quick guide to the discipline of payroll, and how a payroll accountant can help you.
What is payroll?
Payroll is the accountancy discipline that deals with ensuring all employees of a business are paid on time and correctly. This can be a very complex process, making deductions based on time off or time accrued, factoring in tax and national insurance and ensuring this is paid correctly, as well as reporting details to HMRC.
This means maintaining a database of employee details, including their national insurance number and a rate of pay, whether that be hourly or salaried, and any other details pertinent to their pay.
How your accountant can support your business payroll requirements?
A payroll accountant is an accountant that can fulfil payroll functions, including calculating tax, take home pay and any additional payments. Being an expert in the field, having a detailed understanding of the tax system, as well as reporting obligations and how to best calculate deductions and additions is our job therefore leaving the complicated elements to the professional