Payroll, PAYE and Payroll Year End
Denise deals with most payroll matters with Jane providing back-up. Denise works mornings only, Mondays, Wednesdays and some Tuesdays. Jane is full time.
Whilst many accountancy practices charge on a per payslip, per starter, per leaver basis we charge on an hourly rate, reflecting the actual time spent. This means that in general your payroll will be the same each period (normally billed quarterly) unless you have had a number of starters/leavers/tax code changes which have increased the time spent on the payroll.
Clearly it is more cost-effective to have fewer payrolls processed so we recommend clients move away from weekly payroll. A monthly payroll is easier to keep track of – you can pay on the same date (or the last day of the month) every month and always know when the next paydate will be. Some employers do prefer to pay four-weekly with 13 pay dates in a year but this does need more careful tracking (although of course we will always remind you when your wages details are required).
Most employers pay their PAYE deductions to HMRC quarterly, although larger employers (paying over more than £1,500 per month) must pay them monthly. This is due by the 22nd of the month (or the 19th if you still pay by cheque). Again we will advise you of the amount to be paid and the deadline.
Payrolls are now reported to HMRC as they are done under the Real Time Initiative . At the year end you still need to provide all your employees with a P60 which summarises their earnings for the year.
Employers must offer a workplace pension scheme to employees aged between 22 and the state pension age earning more than £10,000 per year. Denise can advise you on this or we can put you in touch with an Independent Financial Advisor - we are unable to give investment advice.