If there is anything about running a business which can be difficult and boring at the same time it has to be money management. Managing your finances for a business is a big job and it takes a lot of record keeping and clever planning to get just right. If you are looking to hire people into your business this year or beyond then you’ll also need to start thinking of a payroll system. Here is how you can set up payroll for your business this year.
The first step to setting up payroll for your business is to register as a business with the government. You’ll be able to visit the HMRC website and add your company into the database and this will allow you to pay people legally as part of your business operations.
Now that you have everything set up with the government you are able to start thinking deeper into which software to use for your payroll. There are many handy tools out there to make the process as simple as possible and you can have a look and choose the one which suits you best. If you don’t know which one to pick, HMRC will actually give you a software to use to make things easier for you.
Once you have a tool ready and you have input all of your employees details including things like their national insurance, date of birth and address: you can start looking to pay. When you go into the tool you can enter their hourly or salaried wage and this will allow you to calculate how much you have to pay them every week, month or otherwise. It will also let you know how much tax and national insurance needs to be deducted from the pay so this can be very handy.
It is a rule with payroll that you have to send over payment information before the date which you pay your employee. So if you were to pay your employees every 25th day of the month you would want to send the information to the government by the 24th ideally.
Once everything else has been done and you are looking to finish the process you will need to pay tax and national insurance to the HMRC. This can be done very simply with the software you use and this will allow you to get everything sent over and get ready for the next payroll date.
If all of this sounds too complicated for you, remember that there is always an option for payroll outsourcing! If you aren’t too sure about whether or not you can handle the job yourself you can hire a professional team of people to do it for you. It will take the stress away from you as a small business owner and it can make your life so much easier when running your business as you’ll have the time to do other things.