- Register as an employer: You must register as an employer with HM Revenue and Customs (HMRC) before you can run payroll. You can register online on the GOV.UK website.
- Gather employee information: Collect and verify employee data, including their name, address, National Insurance number, and tax information.
- Determine employee pay: Calculate each employee’s gross pay based on their pay rate and hours worked, factoring in overtime, bonuses, and commissions.
- Calculate deductions: Deduct income tax, National Insurance Contributions (NICs), and any other deductions such as pension contributions or student loan repayments.
- Record payroll transactions: Record payroll transactions in your accounting system, including employee wages and taxes withheld, as well as employer NICs and contributions
- Prepare and distribute payslips: Provide payslips to your employees that show their gross pay, deductions, and net pay.
- Submit Real Time Information (RTI) to HMRC: Report employee pay and deductions to HMRC on or before each payday using payroll software or HMRC’s Basic PAYE Tools.
- File tax forms: File Employer Annual Return (P35) and Employee Annual Statement (P60) with HMRC at the end of the tax year.
- Keep payroll records: Maintain accurate payroll records, including employee data, time and attendance records, and payroll reports.
It’s important to stay up to date with tax laws and regulations, and to ensure that all payroll calculations and deductions are accurate. Many businesses use payroll software or outsource their payroll processing to a payroll provider to help streamline the process and reduce errors.
find Bristol Local account and Tax consultant near me Local Accountants Bristol Accountants Patchway Accountants Filton Accountants in Clifton BS8, Accountants in Bristol Accountants in Yate Accountants Local expert advisors Accountants in Bedminster BS3 , Accountants in Brislington BS4 , Accountants in Bristol South BS14, Accountants in Horfield BS7 Accountants Bradley Stoke Accountants close to me, the tax expert near me in my area, close to me