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Payroll for the small business can be one of the biggest challenges. Most business owners don't have experience dealing with this tricky aspect of accounting.
We've had a few queries recently asking us for tips on payroll for the small business. We'll start by saying this is an area where we always recommend getting professional help.
Even if you decide to do your own bookkeeping, accounting and tax returns, we'd advise outsourcing payroll. For a small fee, a professional accountant will take the job off your hands.
You can't afford to make mistakes with payroll. If you mess up a salary payment, you will have an angry employee in your office on Monday morning. And HMRC take a very dim view of late filing or missed PAYE payments.
However, if you decide to do your own payroll, this article is for you. We'll recommend software and give you our top tips.
The first thing to do is choose some software to make the payroll process more efficient. There are a number of platforms available:
Although we recommend Xero for most of our accounting clients, we actually recommend Payroo for payroll. it has a number of features that make it a great payroll option for a small business:
Staying on top of payroll comes down to three things:
Payment to staff starts with salary. From there, add on any bonuses or commission. Then make the necessary deductions. These will usually comprise:
The company will also have to make National Insurance contributions to HMRC. You will also usually make contributions towards the employee's pension.
Once you have calculated what is owed to HMRC, make sure you pay promptly and complete the necessary returns. Your accountant or payroll software will explain how to do this properly.
If you'd like our help and advice on payroll for the small business, please get in touch. We have hundreds of years combined experienced working with small businesses just like yours.
We can take away all the stress of managing your payroll. Let us do the heavy lifting so you can focus on running your business.