Payroll can be extremely time consuming and depending on staff working hours, the staff you employ and bonuses and deductions, payroll is constantly changing. To effectively create payroll, there are several factors you must consider. These factors will ensure payments are always perfect.
Coleman & Co can support all businesses throughout the Lisburn area. Whether you require help with payroll or any other service, we will always offer our advice.
Date & Amount
The date payments go out and the exact amount your staff members receive is what payroll will include. This information must always be recorded, no matter how little the payment is or what the payment is for.
All payroll must consist of the date staff members were paid. This ensures you are record keeping effectively and that any queries can be easily answered. Additionally, if staff members have a problem, bookkeeping is the best way to ensure any issues are resolved.
Taxation
As well as your business, all staff members you employ must pay tax. Unless they are underneath the tax threshold of £11,850 per year, you must ensure staff tax is deducted correctly. To complete tax returns correctly, different staff will often have to make different tax returns. As you should tax the income you make, completing tax yourself is often the best option to make sure taxes are paid correctly. The tax rates for 2018 to 2019 are:
- £0 – £11,850 per year – 0% tax
- £11,851 – £34,500 per year – 20% tax
- £34,501 – £150,000 per year – 40% tax
- £150,000 or above per year – 45% tax
You must always adhere to tax laws and make sure your business makes accurate tax returns every year. If you fail to do this when organising your payroll, it could lead to large fines, therefore both you and your staff members could be punished.
Bonuses & Deductions
Part of payroll that you must always consider is the bonuses and deductions your staff are qualified for. Whilst you may not enjoy deducting staff wages (or you may love it!), it is a part of staff payments. Deductions could be made for sicknesses and absences or staff members may qualify for statuary payment. This means their wage will change so you must always complete your payroll with great attention.
Staff members will not receive the same wage every month. Whether this is due to hours worked, weeks in the month and the timing of your payment, it must be monitored closely. Incorrect payments could lead to disputes in the office so bonuses and deductions must be done accurately. Keeping track of all staff bonuses can be time-consuming, but an essential when creating payroll.
Payroll Schedule
Your payroll schedule will prevent payments ever being completed on the wrong date, as a result, your staff members remain happy. By creating a payroll schedule, this ensures any bonuses, pay expenses, deductions and taxes are already considered. Unlike your actual workload, payroll isn’t something that should be left to the last second.
With a schedule, you and your staff members know exactly when they will receive their wage. Failure to meet this deadline will lead to lots of unhappy staff members, so it’s important to get it right. Another reason to create a schedule is to assure staff they are paid by a certain date, without issues. Correct payments on the correct date will always lead to happy staff.
Contact Us
If you need advice or support creating your payroll, do not hesitate to contact Coleman & Co. We offer guidance to all businesses throughout Lisburn, in addition to effective pay management. Speak to our team today and call us on 028 9266 3599 or fill in our contact form to make an enquiry.