Payroll Services

Payroll in the UK refers to the process of calculating and managing employee wages, salaries, and other related financial matters. It involves the administration of payments to employees, the deduction of taxes and other withholdings, and the fulfilment of legal obligations related to payroll.

Many businesses choose qualified accountants to get payroll services to ensure compliance with legal requirements and accurate processing of employee payments. This helps streamline the payroll process, reduces errors, and ensures adherence to payroll-related regulations in the UK.

At Cannytax, we can offer a full range of payroll services with plenty of options to suit you and your business. Need help with payroll? Call us 0203 002 2027.

What do payroll services include?

A small business payroll service will differ from a large multi-national company payroll service, but payroll packages will usually include:

• Income Tax
• National Insurance Contributions (NICs)
• Pay As You Earn (PAYE)
• Pension Auto-enrollment
• Statutory Payments
• Reporting and Compliance

Income Tax

Employers are responsible for deducting income tax from employees’ salaries based on the tax code provided by HM Revenue and Customs (HMRC). The tax code determines the amount of tax to be withheld, taking into account various factors such as tax allowances and any other applicable deductions.

National Insurance Contributions (NICs)

Employers and employees are required to contribute to the National Insurance system, which funds social security benefits and services. Employers deduct the employee’s NICs from their wages and make additional employer contributions.

Pay As You Earn (PAYE)

The PAYE system is the method used by employers to deduct income tax and NICs from employees’ pay. Employers are responsible for operating PAYE and ensuring accurate and timely submissions of payroll information to HMRC.

Pension Auto-enrollment

Under UK law, employers must automatically enrol eligible employees into a workplace pension scheme and make contributions to their pension funds. Employers need to ensure compliance with pension auto-enrollment obligations and manage pension deductions from employees’ salaries.

Statutory Payments

Payroll in the UK also involves managing statutory payments, such as Statutory Sick Pay (SSP), Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP), and Statutory Adoption Pay (SAP). Employers need to calculate and administer these payments based on specific eligibility criteria and statutory rates.

Reporting and Compliance

Employers must maintain accurate payroll records and provide regular reports to HMRC. This includes providing Real Time Information (RTI) to HMRC on each employee’s pay, tax deductions, and other payroll-related details.