A payroll is a term that describes a list of all of a company’s employees, and is commonly used to refer to the amount of money that is paid out in wages. Obviously, it is very important that a company pays its employees, so having an accurate payroll is vital.
It is possible to manage a payroll using certain software, but in a lot of cases it is much better for this responsibility to go to the accountant of the company.
This is because it can become a very complicated process, especially when dealing with HMRC for tax reasons.
Furthermore, the payroll has to be submitted to HMRC as part of the PAYE (Pay As You Earn) tax system every payday, so requires time in the run up to every pay day.
Keeping records
It is very important to keep secure and accurate records of what is paid to employees, in addition to every other form of transaction that a company is involved in.
This is so that if and when the taxman comes knocking, all the records are in place an available for them to look through.
It is recommended that these records are kept for a minimum of three years after the end of the tax year that they are relevant to.
PAYE
The payroll and PAYE are very interlinked, so check out the payroll page here for more information on the system and how it works.
