Do you need a payroll partner for your business?
Payroll at Instant Insight
If you have employees, then you’ll need to process their pay. As this is related to money then it is an accounting function, to process the pay for the employees, the employer, HMRC, pension provider and employment law.
Employees are particularly keen to be paid accurately and on time and if you find this stressful, complicated or time consuming then using a payroll service is a cost-effective solution.
Xero describe the five areas of law related to payroll.
Any business with staff must withhold the proper payroll taxes from employees' pay and pay the appropriate government taxes. In short, you're acting as the tax collector for your employees.
2. Retirement plans and healthcare
You may also have to manage payments for things like social security and healthcare and this will vary from country to country. That means withholding the right amounts from your employees' pay and, usually, paying employer's contributions too. Sometimes these are fixed amounts, sometimes they're a percentage of each employee's salary.
3. Fines and penalties
If you don't pay the necessary taxes you could receive a heavy fine or other penalty, so it's important to calculate the amount of payroll taxes owed and pay them on time.
Tax liabilities must be reported to the appropriate government agencies, and your employees, in writing. This might be done weekly, monthly or yearly, depending on local regulations.
5. Payroll is for employees
Your payroll legally includes the people you directly employ. It doesn't usually include independent contractors or freelance workers, or anyone who invoices you through their own business. If you're ever in doubt about who's on your payroll and who isn't, talk to your accountant.
Instant Insight deal with many different types of organisation’s payroll from sole traders, through charities and on to relatively large organisations. We deal with HMRC, pension providers, payroll software and employee hubs.
Get it right first time, every time.