Administrative duties tend to be tedious and time-consuming. Hence, we always recommend that time is spent doing other obligations in the business. While we are fully aware that prompt settlement of staff and other expenses related to their operations is essential to keep up motivation, we are also aware that any delay could be demoralizing. Payroll is an important aspect of financial accounting, however, it requires a lot of record keeping.
Our long years of experience with clients have shown that outsourcing is the best option in order to enjoy accurate accounting. Although there is no certainty that it would not be prone to error, it is certain that any errors made are minimal.
Whether you are a small or big business, it is recommended that you outsource a payroll program to payroll companies as a result of its complicated nature. Nordens has the appropriate payroll software system that you can rely on. Our team of expert accountants and tax advisors have the knowledge and experience to help you collate your employees’ information and even carry out the accurate calculation of pay. Our clients recommend our services because of the constant updates they get from us about payroll information.
Nordens does the following on your behalf: gather and collate employee information using necessary forms; compile necessary payroll information depending on your processing method – we will put the payroll information in a clear process that will enable the tracking the specific hours for which employees work daily; estimate gross wages for each employee at the end of each day’s work; calculate payroll taxes – this is why most of our clients come to us. Not only does it help your business save money, but time can also be duly invested in other business activities. We will make the calculations, remove deductibles, and submit the report on net payments to you or pay your employees electronically on your behalf.
Nordens clients can enjoy a complete, Real Time Information (RTI) compliant payroll service.
All delivered by our payroll team and supported by our expert, chartered certified accountants.
Payroll for Employees
HMRC Compliance Assured
Here at Nordens, we know Payroll can seem confusing. We receive questions almost everyday from business owners, so here are the answers to a few of your burning questions:
As long as you are receiving income that is above your personal allowance, you are required to pay tax. Usually, the allowance you receive personally is distributed through your pay list for the year so that your employer can deduct it before paying you. If you are overcharged, a refund can be requested (and vice versa). This method is known as Pay As You Earn (PAYE). Similarly, the National Insurance that is due is taken from your earnings based on how often you get paid. It could be distributed using weekly or monthly payments. You are required to fill forms in this respect with HMRC.
P35 used to be a form which contains details of total tax, Pay As You Earn and National Insurance (NI) which is deducted from the payroll of each employee. It is a yearly return completed by every employee registered on the payroll during a tax period. There is a procedure involved in filing P35, however, the introduction of Real Time Information (RTI) has caused it to be out of use since 1 January 2019. Presently, it has been replaced by the Full Payment Submission (FPS) and Employer Payment Summary (EPS).
A P45 contains the summary of an employee’s salary and the tax which has been paid across the previous financial year. It is issued when an employee leaves a job and it is required in order to take up another job. It is necessary to submit this form to the new employer in order to avoid being taxed incorrectly. On the other hand, a P46 is filed by an employer when a new employee does not have a P45. P46 is used also by a first-time employee. By regulations, an employer must complete and fill the first section of the form before the employee’s payday.
Being able to process and settle employees’ pay depends largely on the quality of the record keeping. But this does not mean underpaying or overpaying employees cannot occur even with an adequately kept record. The information required includes:
• Employer details such as the nature of the job, employer salary account, bank code, position and employer branch, among others.
• Salary details like default salary, maximum payable amount, employee salary bank account, bank code, special duties and method of payments, among others. The necessary information can be filled out by concerned parties on a form.
Usually, employers pay more than basic salaries to the employees. The employees may not even be aware that there are other costs involved. Some of the costs are broken down below:
• Hiring costs: even before they become part of the organisation, a cost is acquired on the recruitment process. For instance, a company has to hire another recruitment firm.
• Tax: this includes social security, unemployment and medical taxes.
You are required to pay HM Revenue and Customs for employer’s PAYE and National Insurance (NI) as part of your running payroll every tax month. The payment process can be carried out using different methods such as by Credit Card, Cheque, Internet payment service and even over the phone. You should, however, be aware that there is a penalty for not paying in full or on a specified date. An exception can only be accepted if you have not cleared the employees’ payment in a particular tax month.
At Nordens, we're more than just accountants - we're business experts who can help you achieve your biggest goals.
Our specialist strategic division at Nordens boasts some of the leading entrepreneurial business minds in the country. We cater towards delivering consistent success stories, whilst helping businesses achieve above and beyond their initial goals.
Through highly-tailored guidance, coaching and advice, Nordens Strategic are able to define exactly how your business can reach new levels of success.
Regardless of how you define ‘success’ for your business, our strategic service is guaranteed to bring about real and lasting change. By partnering with some of the UK’s top business coaches, we’ll steer you along the path to a greater future.
Every business, no matter how big or small, needs to make the right decisions, and how to best manage your accounts can put huge question marks over your business. Accounting2You is here to take that pressure off and provide you with all the answers you need.
Our bookkeeping branch offers a fully inclusive, comprehensive service that you can trust. Since 2005, our specialist bookkeepers have been successfully managing the accounting of both individuals and small businesses.
With experts in payroll analysis, credit control and financial recording, Accounting2You will lead your business efficiently, and with real purpose, towards a prosperous future.
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In November 2002, having sold our other business interests off earlier in the year, I decided to set up Nordens Chartered Accountants. The easy part was knowing how to do it, as I had established and built a smaller practice a few years earlier. The difficult part, for me, was not following the traditional accountancy path. Having run businesses, both successfully and unsuccessfully, I wanted to help business owners resolve their short term problems and work with them to achieve their longer term goals. Business has always been my interest and I love that I can help business owners achieve what seems like the impossible every single working day.
Our limited company accountants have a range of qualifications from The Institute Of Chartered Accountants (ICAEW) to the Association of Chartered Certified Accountants (ACCA). We worry about the bye-laws, regulations and ethical guidelines of the ACCA so you don’t have to! That makes us an ACCA-accredited employer as well as a Professional Passport-accredited one!
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