Payroll refers to the financial services offered by an organization to its employees. It is an essential function of the organization which must not be delayed by the employer. Some companies in the UK outsource some parts of their business responsibilities, which also include payroll services. If you wish to outsource payroll services to a specialized company, here’s what you can expect as an employer.
Services for Employees
A company specializing in payroll services ensures the timely payment of all the employees hired to do a particular job or task. A payroll service company works with its clients and mainly focuses on payroll and human resource tasks. It tracks the employee’s hourly or monthly wages, or gross salaries, bonuses, loans, and advances.
Other than that, the payroll service company also marks the attendance of employees, monitors their time at work, calculates payroll taxes, and makes deposits, grants allowances, compensations, and expenses as well. The company also prepares employment tax files, handles the employee’s queries, and provides them assistance whenever needed.
Maintaining Online Records
Nowadays, with technological advancements, the payroll company is also required to maintain electronic reports of the employee accounts with necessary personal details, payment methods, and transaction histories, per hour piece rates, weekly payments, any leaves taken by the employees, and other relevant data.
It updates the accounts every time there are changes in the employment system like changes in wages or salaries, variations in working hours, and other necessary modifications. The company also generates payslips, prints forms for the employees, and send the returns to HMRC (Her Majesty’s Revenue and Customs; a UK government department).
Additionally, it may also take care of a few other responsibilities related to the human resource department. The payroll service company keeps track of retirement records of employees and employee benefit programs. It can also help with the employee’s legal obligations and labor laws. It also helps the employer to fulfill a few of his legal responsibilities by staying in touch with the HMRC.
The company also produces required documents to HMRC and keep the department updated with the employee records. It also helps meet the PAYE (Pay as You Earn) compliances formed under the RTI regulations. So, the employer does not have to worry about any late fines or penalties regarding the PAYE regulations. It also helps meet the deadlines of payment to external bodies like the HMRC, courts, or other pension providers, reducing the risk of penalties.
As a legal obligation of the employer to provide payroll system updates to HRMC regularly, outsourcing it to a payroll service company reduces the employer’s burden. The payroll company saves time for the employer and keeps the employees always satisfied. While the payroll company takes charge of its responsibilities, the employer can focus on other parts of the organization and work efficiently.