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Payroll

More common payroll mistakes

By March 21, 2013May 24th, 2021No Comments

It’s precisely because the management of a company’s payroll is such a complex activity that so many businesses decide to outsource their payroll to a specialist firm such as Rapid Payroll. There are still plenty of mistakes that can be made, however, and here are just a few of them…

Not keeping to the deadlines of HM Revenue and Customs (HMRC). If you are currently handling your own payroll, then you will need to be sure that you are up to date with the submission of forms and the due payment of tax and National Insurance (NI), not least as there are heavy fines for failing to meet deadlines.

Not keeping up to date with the most recent legislation. HMRC’s PAYE system sees frequent updates which involve adjustments to the amount of tax and NI that it is necessary for an employee to pay. Choose Rapid Payroll, and you won’t have to worry about your staff members being charged incorrect amounts.

Failing to save records. It is a legal necessity for information that is related to staff payments and payroll to be kept for seven years. If, as it is able to do, HMRC asks to see this information at any point for audit purposes and you are unable to produce it, you could face a hefty fine.

Using an out-of-date filing system. Using an old-fashioned manual system means that you risk the loss of vital documents. This can result in an inaccurate payroll that greatly inconveniences both your company and its employees, which is why you are advised to use an electronic filing system and scanned documents instead.

 

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