How can I pay my employees?

 09 Aug 2018

There are several options you have to ensure your employees are paid on time and receive the correct amount. These options vary in application and suitability dependent on business size and resources, so it’s wise to follow the best option to suit your business going ahead. 

Firstly, you could complete all your payroll yourself as a business owner, but we would not recommend this approach. Not only can the task become laborious and time-consuming, you will also have to learn and follow all the correct procedures to prevent encountering any future payroll problems. However, don’t be fooled that this only relates to your employees pay, additional rules and regulations are to be followed for hiring employees including registering them with the appropriate agencies, collecting their personal employee ID number and fulfilling all regulatory requirements. These tasks further include obtaining information such as:

  • Individual employee pay rate

  • The amount you need to deduct for taxes and other supplementary payments

  • A record of how much you have paid your employees, the amount deducted and justifications behind the deductions.

However, do not just think that this is a task for each payday, you will be required to have all this essential information for your business tax forms to ensure you pay your employees correctly and on-time, pay any taxes you have incurred whilst maintaining the business books are up to date for end of year reporting. Let’s not forget that you will be undertaking all these tasks on top of running and hopefully growing your business.

Secondly, dependent on your business size, you could set up your own payroll department but before you think this might be the best solution to keep everything in-house. Would the cost outweigh the benefits? This will include covering the additional cost of another full-time employee who should be qualified in accounting or business administration. Let’s not forget that you will also be entrusting them with the most important aspect of the businesses legalities to a new employee which will require a large time and effort commitment to arrange.

Lastly, you can trust a payroll bureau and outsource all your payroll commitments whilst enjoy a high-quality service at competitive monthly rates. Outsourcing payroll to a professional provider is quickly becoming the most popular option for many small businesses. It’s no downfall to feel overwhelmed by payroll and feels you need to outsource to a payroll service, the process is extremely complex and often requires years of training in accounts to be confident all the correct procedures are fulfilled. 

The processes involved in operating a businesses payroll is progressively becoming more complex and it’s essential to follow the rules correctly as there has been an increase in fines if malpractice is operated. Simply by working with a payroll bureau, you can remove the worry of incurring fines and re-engage your focus on growing your business. 

The upward trend of more smaller businesses utilising an outsourced payroll service only seems to be gaining traction, so there must be a substantial benefit. This substantial benefit is being able to focus their full attention on business development for a small monthly cost. However outsourcing payroll is not just for new businesses, there is a huge benefit for businesses with current payroll systems in place. These benefits fall in-line with enhancing a businesses efficiency so as a business owner, you can re-assign your additional time to growing the business and maximising profits.