new-business-payroll-solution

How can my new business venture get payroll right from the start?

 20 Aug 2018

When you start out on your new business venture, you’ll have the expectation to be hiring employees following the expansion of your successful idea. However, straight from the start, there must be a solid and suitable payroll system to support the business. We understand that choosing a payroll system may not be high on your priority lists when you begin because your attentions engrossed in exploring new business opportunities, but this step is important to prevent future problems related to growth. It is also important to be aware that if you’re undertaking employing people, those responsibilities comes with numerous legal requirements such as operating PAYE in your payroll. However, do not start thinking that a new business venture is not for you if you’re struggling with all your payroll responsibilities because you can easily outsource your payroll to a professional bureau for a small monthly cost. As mentioned, you’ll have to ensure that you abide by HMRC’s PAYE obligations which is their system to collect Income Tax and National Insurance which involves deductions to be processed and reported to HMRC.

 

Even though, when you start, you would not be expected to be an expert. You should make sure you can achieve all your payroll obligations or you could be facing fines and penalties. Alternatively, passing this responsibility onto your professional payroll service could provide that valuable piece of mind. Whilst considering your options, here are four things to factor when deciding how to operate your payroll:

  1. SecurityFollowing the recent developments in protecting people’s personal information, this should be a primary aspect. Unfortunately, this is commonly overlooked for a cheaper alternative but it is important to consider how much you value your employees. We would recommend making yourself familiar with the security policy and check that it features encryption.

  2. Payment Method - How do you plan on paying your employees? Most providers will utilise direct deposit as it’s simple to follow the movement of finances, but some providers integrate with banks and pass on associated costs, so it’s important to check. If you’re looking to pay via cheque then you need to ensure that this option is available.

  3. Keep records - It’s extremely important to keep track of transactions and employee details including salaries and deductions. Therefore, you need to ensure that your provider has the capacity to maintain and update your records whilst also allowing you to have unlimited digital access. 

  4. Plan ahead - Choose a payroll provider which is always two steps ahead of the game. This is not referencing to being ahead in payroll months, it’s their ability to deal with your business if you experience quick expansion and suddenly find yourself in the favourable position of having more demand on these services. It’s important to understand the flexibility and ease to expand your services to deal with this additional responsibility.

If you have little or no experience in business payroll, then you could be in for a very quick learning curve. However, it’s important that your strengths may lie elsewhere and that’s the same for many small business owners who have started a new business and they are able to thrive. The simplest solution is to outsource to a professional payroll bureau, it could be the time that it makes sense to outsource or you feel overwhelmed by the processes including not understanding tax codes and how to pay employees. At the core of your decision should be how much you value completing this process yourself or offloading the responsibility so you can focus on what you bring to the business.