Payroll Smart solutions for payroll & auto-enrolment...
Our payroll packages provide you with the peace of mind in knowing that you are fully compliant with the law, allowing you to concentrate on the important job of running your business.
Payroll and Auto-enrolment
Whether you’re a new business or looking to change provider, we provide a complete payroll service with an attention to accuracy and detail. All too often, we gain new business because payroll providers miss the all-important details.
We produce all the necessary documentation and provide reports on what to pay and when. We also provide advice on changing legislation such as holiday entitlement and Nation Minimum Wage.
In addition, we offer cost effective Auto-Enrolment solutions to your payroll to ensure you stay compliant with the law.
When to process your payroll
Payroll can be done weekly, fortnightly or even monthly depending on your preference. You need to produce wage slips for your employees, pay your employees and report to HMRC when you file payroll.
Tax months run from the 6th of one month to the 5th of the next. In order to process payroll you need to record your employees pay, calculate any deductions, calculate your employer’s National Insurance contribution, produce pay slips for each employee and report their pay and deductions to HMRC in a Full Payment Submission (FPS). You must then pay HMRC what you owe then by the 22nd of the month.
You should record all your employees’ wages or salaries in your payroll software, even if they get less than £120 a week.
You may also need to record SSP (statutory sick pay) and statutory pay for parents (maternity, paternity, adoption, bereavement or shared parental pay). These are all taxed like normal pay so need to be recorded in the same way.
You should also record bonuses, commission, holiday pay, travel time payments, passenger payments (except the first 5 pence per mile), medical suspension payments, maternity suspension payments, guarantee payments, office holders’ payments, payments that can be converted into cash, inducement payments and any cash prizes for any competitions in the same way you do normal pay.
Your software will calculate how much PAYE tax and National Insurance to deduct from your employees pay. You may also need to deduct pension contributions, student loans, giving donations and child maintenance payments.
You can use your software to record any of these deductions both for your record and on their payslips. Pensions are deducted after you have taken off National Insurance but usually before you take off tax.
Payslips should be provided to your employees on or before their payday. They must show their gross pay (pay before any deductions), any deductions, net pay (pay after deductions) and the number of hours worked if the pay varies depending on time worked.
Payslips can be printed and given to your employees or sent electronically.
Full Payment Submission
You may be able to use your software to send your FPS to HMRC to tell them about payments to your employees and what deductions you have made.
Your FPS should be sent on or before your employees’ payday.
Employer Payment Summary (EPS)
You should submit an EPS as well as an FPS if you:
- Reclaim statutory maternity, paternity, adoption, parental bereavement or shared parental payments (even if you got an advanced payment from HMRC for them).
- Claim Employment Allowance.
- Can reclaim CIS (Construction Industry Scheme) deductions as a limited company.
- Claim National Insurance contributions to holiday for previous years.
- Pay the apprenticeship levy, or employers you are connected to, have to pay more than £3 million annually.
EPS forms should be submitted by the 19th of the following tax month to HMRC in order for you to apply for any reductions in what you owe HMRC from you FPS.
Every month you will have to pay HMRC for the deductions you made to your employees pay. You can see what you owe from your FPS or on your HMRC online account.
You can pay HMRC in a number of ways including CHAPS. Online or telephone banking, debit card online, BACS, at your bank or building society, by cheque or by direct debit.