If you're a business owner in the UK, you know how important it is to keep your payroll running smoothly. That's where a good payroll service in the UK comes in – they can take the hassle out of payroll and make sure everything goes according to plan.
Hawksford provides accurate UK based payroll service for all sectors and sizes of UK businesses and organisations. We handle the time-consuming tasks of payroll processing and employee payroll tax filing so you can focus on your core business.
How does online payroll work?
Online payroll services have become a popular option for businesses of all sizes, offering a convenient and efficient way to manage employee payments.
Generally speaking, online payroll services collect employee information and calculate payroll taxes. The service then deposits the net pay into the employer's account on payday. Some services also offer additional features, such as a direct deposit for employees, time tracking, and HR support.
It allows employers and employees to manage their finances online without using paper-based methods. Employees can access their pay stubs, tax forms, and other pertinent information through a secure website. Employers can enjoy the convenience of paying employees without ever having to leave their offices.
There are a few things to keep in mind when choosing an online payroll service:
- Be sure to compare pricing and features to find a service that fits your needs.
- Make sure the service is compatible with your accounting software.
- Work with a reputable payroll service with a verifiable track record of dealing with companies of your size and type.
By understanding how online payroll works, you can ensure your business gets the best possible payroll service.
UK PAYE Rules and HRMC Legislations
UK Employer's Obligations require 100% compliance with HMRC and other UK government agencies. Employers in the United Kingdom have specific legal obligations when it comes to the PAYE of their employees.
If you are an employer in the UK, you must be aware of your legal obligations. Failure to comply with them could result in severe consequences for your business.
The PAYE Scheme must be registered before the first payday. An employer is responsible for collecting and keeping employee records and is legally accountable for compliance with PAYE, even if payroll is outsourced. Employers Liability Insurance is another legal requirement if your business employs one or more people.
When employing staff in the UK, an employer must ensure that every employee has the right to work, even if they are a UK citizen. These checks will require either a physical examination of ID documents or applicants with a Biometric Residence Permit will need an online check.
From the 1st of January 2021, a new immigration system will apply when employing staff from the EU, and EU citizens moving to the UK to work will require a visa in advance.
Employing illegal workers is a criminal offence that can carry a prison sentence of up to 5 years. Even a genuine failure to undertake adequate checks can result in a fine of up to £20,000 per illegal worker. Depending on the industry, the employer may also need to carry out a Disclosure and Barring Service (DBS) check to establish an applicant’s criminal record.
An employer must inform HM Revenue and Customs (HMRC) when they take on a new employee who should also provide a P45 from their previous employer. This form details the taxes the employee has paid to date in the tax year and helps determine the correct tax code. It may also indicate if the employee is paying back a student loan. If the new employee does not have the P45, they need to complete the HMRC’s Starter Checklist, determining the correct tax code to use for them.
All new employees are entitled to a written statement of employment within two months of the initial hiring, including terms and conditions of employment, wages, a discussion of pensions, sick pay, absence, holiday pay, total hours, and other common issues.
No specific law on probation determines how long it should be. However, typically a probationary period lasts no longer than six months (or three months when an employee is moving to a new post internally) and can be as short as one month for contract workers.
An itemised pay statement must be given to an employee (electronically or on paper) each time they are paid following The Employment Rights Act 1996 (ERA).
An employer must submit payroll information to HMRC on or before the day they pay employees. The report is the Real Time Information (RTI) submitted via an online gateway and includes all payroll information from payments and income taxes to social contributions.
Pensions automatic enrolment
A pension's automatic enrolment is a system that encourages employees to begin saving for retirement by enrolling them in the company pension plan without having to take any action on their part. Employees are automatically enrolled at a percentage of their pay that the company determines, and they can opt out if they choose.
This system is designed to make it easier for people to start saving for retirement, and it is effective in increasing the number of employees who are enrolled in pension plans.
Automatic enrollment has been mandatory for most new employees in the United Kingdom since the 1900s, and it has been introduced in several other countries as well. It is typically only available to employees who are not already enrolled in a similar retirement savings plan.
Studies show that employees are more likely to save for retirement if it is easy to do so. There is no need for employees to sign up for the plan proactively with automatic enrolment. Instead, they are automatically enrolled and can begin saving for retirement with minimal effort.
Our experienced team of payroll experts can manage your employer duties and auto-enrolment quality standards, to save time and avoid any possible penalties.
Bacs Approved: What This Means
BACs stand for the Banking, Payments, and Cash Management industry body. They've recently approved a new set of standards that will help to improve the way payments are made between businesses.
This is good news for employees, making it easier and faster to get paid. It will also help reduce the costs of making payments, as businesses will no longer need to use paper-based methods.
Hawksford is BACs approved, meaning we are authorised to make payments directly from your bank account to pay your employees, HMRC, and other third parties.
Managed Payroll Services in the UK
Managed payroll services in the UK are a service offered by third-party companies that helps businesses manage their employee payrolls. This can include calculating employee pay, issuing payslips, and managing tax and National Insurance contributions.
By outsourcing this task to a managed payroll service, businesses can save time and money while also getting peace of mind that their payroll is being handled correctly.
Why Outsource Your Payroll Service
As a licensed payroll service in the UK, Hawksford offers you peace of mind, knowing that your employees are paid on time in a compliant and efficient manner. Our payroll experts are all UK-based and work with your business, as part of your team, managing each employee's payroll accurately and securely.
Here are four reasons why it makes sense to outsource your payroll to our dedicated team of experts in the UK.
We know the ins and outs of payroll tax laws: Payroll taxes are complicated. It demands considerable time and attention to process correctly every month. Hawksford payroll service can help you navigate the maze of tax laws and ensure you're withholding the correct amount from your employees' paychecks.
We can save you time (and money): Calculating payroll is time-consuming. And if you make a mistake or miss deadlines for either payment or reporting, it can cost you dearly in penalties and interest fees. We take care of all the details for you, freeing up your time to focus on other aspects of your business. As experts in payroll processing, we often find ways to save you money on your payroll taxes.
We handle direct deposit and other convenient features: Gone are the days of waiting in line to cash your paycheck at the bank. Your employees can have their paychecks deposited directly into their bank accounts with direct deposit. Our payroll service offers online access to employee pay stubs and tax forms, which makes it easy for employees to keep track of their earnings and taxes.
We give you peace of mind: When it comes to something as important as payroll, it pays to have a professional on your side. Our payroll experts will be there to answer your questions and help you resolve any problems. We will make sure your employees are always paid on time, every time. Outsourcing your payroll to a professional service provider is a smart move for any business owner. If you would like to discuss a payroll solution for your company, get in touch with our team.