Payroll can be a very time consuming and complicated exercise.
With the HMRC RTI (Real Time Information) system, an employer now needs to report to HMRC electronically through approved software each & every time a payment to an employee is made.
If an RTI report is missed, automatic penalties are generated.
It is therefore an onerous task which most employers are keen to outsource.
In order to minimise the risk of financial penalties, it is often preferred to pay staff monthly.
In operating your payroll scheme, we would:
- provide employee payslips
- provide monthly summaries
- deal with leavers and starters
- submit Real Time Information (RTI) PAYE returns to HMRC
- submit CIS returns completed by us
- provide end of year P60’s & CIS Summary’s
As an employer you may want to provide your employees with certain benefits such as medical insurance, tool allowance, company vehicles or simply paying expenses on their behalf.
All benefits are taxable as employee earnings and will be annually reported to MRC on form P11(d) or P9(d).
The employer will also be required to pay Class 1a NI on the cash equivalent of the benefit.
There is a comprehensive list of benefits on HMRC’s website for your guidance: