Managing payroll in the United Kingdom involves a series of tasks related to paying employees, calculating deductions, and complying with various tax and employment laws. Here’s an overview of the key aspects of payroll management in the UK:
4- Deduct Taxes and National Insurance Contributions (NICs):
Determine the appropriate tax code for each employee and deduct income tax and employee NICs from their paychecks. Employers are also required to pay employer NICs based on their employees’ earnings.
5- Pension Auto-Enrolment:
If you have eligible employees, you must enroll them in a workplace pension scheme and make contributions on their behalf as part of the automatic enrollment program.
6- Report Payroll Information to HMRC:
Submit Real Time Information (RTI) reports to HMRC each time you run payroll. RTI requires detailed information about employees’ earnings, taxes, and NICs.
7- Issue Payslips:
Provide employees with accurate payslips detailing their earnings, deductions, and net pay.
8- Keep Records:
Maintain thorough payroll records for at least three years, including payslips, RTI submissions, and records of employee pensions.