What is Payroll?

It is company’s list of employees. It is used to refer the record of the company’s employees, their salaries, bonuses, taxes, etc. and the amount that company pays to its employees. It is also a department that calculates and pays the salaries to its employees.

Payroll is subject to all laws and regulations that’s why it is an integral part of an organization. Also, its main objective is to ensure that all employees are being paid accurately and on a timely basis and proper calculation of tax, withholding or over time, bonuses is being made.

Types of payroll system:

A proper payroll system can help an organization to mitigate the risk of miscalculation and noncompliance. There can be three types of payroll systems:

• In-house
• Bookkeepers and CPAs
• Payroll service
• Online payroll

Online Payroll Services for Small Business in London There are various payroll service providers that are providing services to small business in the London. Some of them are as follows:

1. Ceridian
2. Eagle consulting
3. Perfect Payrolls
4. MoorePay
5. Barclays managed payroll services

Ceridian:

It operates around the world and provides both HR and payroll services like WeAccountax to many businesses. They offer in-house payroll services to small business and also the payroll software system, depending on the size and requirements of the company.

Eagle Consulting:

The branding of this service provider includes a statement “your outsourced accounts department”. It provides basic services like year end reports, electronic payslips, etc.

Perfect Payrolls:

It is a UK based payroll service. Their price range starts from £20 per month for small and medium size business. It provides fully managed payroll service which includes regular reports, annual documentation, PDF pay slips.

Moorepay:

It has been providing payroll services in UK to more than 2500 organizations. Its services include payment to HMRC, payment to employees, submission of annual report to HMRC, handling starters and leavers, printing and dispatching pay slips, etc.

Barclays managed payroll services.

They offer payroll services to companies of all sizes. Their services comprise of managing and providing reports, electronic payslips, extra payments like overtime and year end reports. Payroll Outsourcing:

Handling payroll is not an easy job and requires a lot of skills and expertise. The organizations that have their domain other than payroll prefer to focus more on their important departments and matters rather than payroll, which is eventually more time consuming and requires attention to detail and accuracy.

Many organizations, therefore, hire a third party to handle their complete payroll functions in order to save time and money, which ultimately reduces the training of in house employees of payroll, purchasing and maintaining the payroll softwares.

The outsourced payroll service providers calculate the salary, wages, bonuses or any deductions from employees for which it requires the initial details of the employees such as name, date of birth, HMRC codes, NI numbers and gather the other relevant information from the company. The data and information can be either gathered via email or through an electronic system. The company provides the data, time sheets and then the payroll is processed accordingly.

The general information that service provider requires include

* Rate per hour * Details of fixed or variable pay * Payment to be made weekly or monthly * Leave deductions, etc.

The information can be changed and customized as per the need and nature of the business, i.e. where there is more of labour work involved, the daily or weekly payroll needs to be processed. The tax filing services are also being provided by an outsourced company for which tax related information is also required. They reduce the burden of calculating, paying and filing taxes and forms and also keep up with the tax regulations.

Outsourcing payroll allows employers to focus on their core business and let its accounting department focus on more strategic tasks. This can increase the productivity of the organization and also reduces the cost of hiring and training efficient and experienced employees. The payroll service providers have a whole lot of experienced people working for them specifically on payroll, which increases the reliability of their work and can handle the legislative issues and situations more accurately and saves organizations from any sort of penalty or charges for late submission of taxes.