Sorting out the financial side of any business is extremely important; from paying your employees to being paid by clients and settling your taxes, if your accounts aren’t in order, you could be in serious trouble.
If payroll and accounts aren’t your strong point, and you don’t want to take on another staff member to do it for you, one alternative option is to employ a payroll bureau. A payroll bureau is a company that specialises in completing other business’ payroll and accounting.
Many businesses are now choosing to go with a payroll bureau because of the many benefits and advantages they offer. As well as being a hassle-free means of looking about your accounts, a payroll bureau will take care of a variety of additional tasks too.
Appropriate Calculation and Payment of Staff Wages
Whether you have 3 employees or 300 employees, a payroll bureau will calculate each member of staff’s wage and make a direct payment to them at the appropriate time.
Sorting out your payroll properly is important.
Some companies provide a set wage and hour’s contract to their employees whilst other members of staff work through varying shifts or by ‘clocking in and out’ every time they arrive or leave. You should advise the payroll bureau how your company works, so that they can make the appropriate calculations.
Companies also pay their employees at different intervals; some pay monthly, whereas others pay weekly or fortnightly. As soon as you have advised the payroll bureau how often you would like your employees to be paid, they will sort everything out for you.
Appropriate Calculation and Payment of Tax
As well as paying your employees, you will also have to pay the taxman. With constantly changing guidelines and legislations, a payroll bureau will keep up to date with everything related to taxes and ensure your company stays legal and compliant.
With their professional knowledge, a payroll bureau can also advise you on where you might want to make tax savings and whether you can afford to buy things for your business.
Printing and Sending Employee Pay slips
It’s very important to keep a record of your finances including whom you are paying.
Every business should give their employees a pay slip every time they pay them some money. Most companies still give a printed, hard copy of the pay slip, although some are moving to electronic pay slips sent via e-mail.
This is something you should decide and communicate to your chosen payroll bureau. It’s important to bear in mind that not every member of staff might have an e-mail address. The companies that issue electronic pay slips are often office-based businesses that provide work e-mail and can guarantee each member of staff has electronic access.
You should expect a certain level of service.
Quarterly and Annual Payroll Reports
Although you can rest assured that your payroll and accounting is being taken care of by professionals, it’s also important that you know what’s going on. Every quarter and once a year, a payroll bureau should send you a report detailing the payroll for the past few months, or other period that you have agreed on. These reports are also very important for tax records.
End of Year Employee Tax Documents
At the end of every tax year, which is April in the UK, every employee should be issued with a document detailing how much they have been paid in the previous year and how much tax has been deducted.
A payroll bureau will take care of these end of year documents for you, and ensure your business complies with all of its legal requirements.
A payroll bureau is a great way of ensuring your company’s payroll is all in order. It’s definitely a stress-free means of keeping your company on top of payments and taxes. Payroll bureaus usually offer other services too, though this can vary depending on the particular provider you ultimately choose.