Payroll Outsourcing UK
How does payroll outsourcing work?
If your company is new to payroll outsourcing, but is considering having your employees' paychecks handled by such a company, you will first want to know how it works.
Signing a contract -- The first step is to find a payroll outsourcing uk company you like, agree to how they will handle your paycheck information, the fees they will charge and what they will guarantee.
Once you get an agreement you like, you will then sign a contract. The payroll outsourcing firm is then responsible to follow through on what they promised to do for you.
Your employees' personal information -- Next, you should send your employees' information to the company.
This includes their annual rate of pay, the hours they generally work every week and if overtime is paid or if they are a salaried worker. It should also include any information about retirement accounts and benefits each employee currently has with your company.
This is the information the payroll outsourcing company uses to pay your employees every month.
A few days before payday, you will then need to send the company information on each employee. This will include how much their income should be that month and their tax bracket, as well as any deductions that need to be made.
The firm will then take care of paying your employees and paying their taxes.
Paying payroll taxes -- Every company also has to pay payroll taxes to both state and federal governments. This is also taken care of by a payroll outsourcing company.
Many companies like this as mistakes their own accounting departments have made in the past rarely happen when outsourcing the task to a company.