There are many steps (and a large stack of paperwork) required to set up employees for payroll. Penalties for incorrect processing of payroll can be severe, and no one wants a payroll audit from HMRC! Ensuring your payroll is set up and processed correctly is vital to your success. Here are the top reasons to consider utilising an online payroll provider to manage your payroll.
Cloud-based payroll technology: Eliminating paper processing and utilising technology ensures data accuracy and compliance, and the software updates each year with any regulatory changes, so you’re always compliant with the most recent payroll regulations. You can also access your payroll from any smart device for quick adjustments or changes necessary at any time. Get rid of the paperwork and let technology simplify your processing.
Before starting payroll for the first time, there are many requirements to fulfill. Online payroll providers help register your company, set up employees, verify if employees need to be paid through PAYE, and provide required information to HMRC via the Full Payment Submission (FPS) form, ensure tax codes and starter declarations are accurate, and more. It can be confusing to set up, and an online payroll provider ensures all necessary information has been submitted and processed before the first payroll.
Online payroll providers simplify the new employee process. A payroll provider will utilise the employee information including general employee data (name, gender, start date, etc.) and more detailed information from the employee P45 document including; total pay and taxes paid year to date, student loan information (if any), date of last employment, and tax codes. Trying to manage all of this information in-house can lead to errors or omissions.
Data collection and storage is another factor to consider when starting payroll. Employers must keep records for 3 years after the last payroll, and if there are any questions from HMRC, those records must be accurate. An online payroll provider can store payroll data records and maintain for future use or for audit purposes. Fines can be strict for non-compliance, so maintaining records is a top priority. Trying to manage all of that data can be a full time job for one of your employees, but a payroll provider can easily manage the data for you.
These are just a few of our top reasons why you should utilise an online payroll provider. It is a cost-effective way to ensure compliance and accuracy in your payroll, and it takes the burden off your team to manage this process so they can focus on company objectives. Click here for your free trial
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Payescape Limited is authorised by the Financial Conduct Authority under the Payment Services Regulations 2017 (register number 821826) for the provision of payment services.