small-business-guide-to-payroll

Small Business Guide to Payroll

 24 Sep 2018

You can avoid many inconveniences, including law-related ones, by having the right payroll process for your small business.

Businesses in the UK can be easily divided into two types: those who hire staff, and the ones that act as one-person firms. The latter is simpler because they do not require a department to run a business, so payroll is not necessary at all. However, we will discuss reasons for using a payroll company to help with all the legal obligations. The other sector, which includes organisations that hire and pay employees may require a payroll department because they have to abide by the law to deduct things like National Insurance and other taxes. The tasks required for larger businesses expand with the business and so does its responsibilities such as keeping financial records and issuing payslips.


As a small business, the likelihood of your experience with payroll with has developed from online research. However, this comes with the risks of fulfiling legal and financial obligations without sufficient instructions. Nevertheless, you do have several options available to help you as a small business owner.

Outsourcing:  
A commonly trusted solution for a small business is to outsource the task to a professional payroll service. These payroll service providers can provide your payroll in an organised fashion, so you won't need to worry each month with the struggles which payroll conveys. 


Don't feel that outsourcing means that you're unable to run a business because this solution has shown to provide significant benefits and enhance the running of a business. In addition, larger businesses can also benefit from outsourcing, but in either case, excellent communication between both parties is essential. If a small company decides to go with an outsourcing strategy, we recommend you check the costs per an employee which should be clearly displayed.

You could have a fully managed payroll service which includes a dedicated account manager to fulfil all your obligations and offer the unwavering support.

In-house:

You can choose to keep performing all your payroll obligations yourself or employ an individual to undertake these tasks. However, experience has shown that small businesses choosing this option rely on the owner's initial knowledge as they are unable to find an experienced individual that justify the wage and the small-time consumption. Unless determined to keep this in-house, it becomes suitable to weigh-up the positives and negatives for both options.

If you're keeping your payroll in-house, be sure to check that you adhere to all your payroll obligations including National Insurance, deductions, tax, benefits and much more. Misunderstand or inability to perform these can result in hefty fines.

The Decision

Small businesses should know all the basics of payroll before they decide to handle it themselves. They can use an in-house employee or use online payroll systems. Remember that you're dealing with sensitive data here, so security is a must. Always keep your system updated and stay ahead of any technical issues that can compromise your company's security.

If you, as a small business owner, decide to manage your company's payroll yourself, be aware that it is an essential decision, so wage your options.

See if outsourcing fits your company's needs and can really represent an aid. Professional payroll companies have reliable payroll systems and the expertise to make the best out of your payroll duties. 

If you think that having a professional aid, that has the right systems and the knowledge to conduct your payroll flawlessly, then hesitate no more and click here so you can go through payroll each month seamlessly and headache free.