Understanding payroll for a small business

Payroll is one of the most important aspects of running a business. You need to pay your employees their salary and on time.

It is not an easy task for anyone as there are regulations that need to be followed diligently, and it needs to be accurate as any tax mistake could have an impact both on the company and on the employee.

Read more on how payroll works and how Husky can help you. 

What does payroll mean for small businesses?

The person who is responsible for payroll has to take care of:

  • making payments on time and correctly to the employees in accordance to their contract and the hours they’re working
  • making the right deductions from their salary, such as for income tax and pension
  • provide a detailed payslip to the employee
  • calculate the right taxes for the business and pay them on time
  • keep track of these records

The people in charge of payroll need to be experienced with compliance and regulations around payroll. Keeping track and sorting out this side of business is tedious and best left to professionals.

Payroll is essential to any sort of business, small and medium-sized enterprises and businesses that have employed people. Self-employed don’t need payroll services as they work for themselves, and invoicing is claimed directly from the company.

What are payroll deductions?

The most common deductions are National Insurance, income tax and pension, although it can also be a type of benefit deducted or even healthcare insurance. Income tax appears on the payslip as PAYE, and depending on the worker’s tax code and salary, they pay income tax.

These deductions are taken care of by payroll experts such as Husky. 

How does it work?

Whether outsourcing payroll or handling payroll yourself because you have the compliance experience to do so, you need to be fully aware of how this works.

For instance, Husky has an integrated payroll, pension and Salary Exchange service for employers. We help businesses like yours be more in control by taking care of your payroll processes as well as your workplace auto-enrolment procedure.

We take care of employee payments and calculating deductions, as well as helping you give your employees the best chance they have in saving for their retirement, with a pension auto-enrolment scheme in place.

In our payroll service, we also include the best-kept secret of larger corporations to the mass market, Salary Exchange. An employee benefit that puts more money in your staff’s pockets but also saves a business a lot in National Insurance contributions.

Should I outsource payroll or do it myself?

It is very common for accountants to be in charge of payroll for businesses and SMEs. They have financial experience after all.

It is also very common for specialist payroll service providers to be in charge of employee salaries.

Husky is not an accountancy firm, we are something much better. We are the UK’s only open, independent platform for workplace pensions, combining our expertise in pensions with professional payroll services.

The truth is that the more employees you hire, the more complicated and time-consuming payroll gets. Which is why you need to be confident and knowledgeable that you can do this yourself if you decide not to outsource this service. The smart and cost-effective approach is to outsource, in order to ensure you’re compliant with all processes.

If you are about to start employing people, Husky can help you every step of the way to get things done properly. 

If you are already paying people and running payroll yourself, Husky lets you offload that task to specialists, so you can get on with more strategic activities in your business – taking care of what matters most.  

If you have outsourced payroll, then Husky provides a modern, cloud-based solution that makes running payroll and workplace pensions a breeze, while ensuring you stay compliant. 

Payroll doesn’t have to be complicated. You can leave it to the professionals. 

Did you know

…that many employees miss out on a workplace pension because of the company’s payroll system?

And in order to have a pension when the payroll system is already in place, an expensive upgrade is needed, which SMEs and small businesses cannot afford.

This problem causes accountants and employers to believe that an auto-enrolment system for a pension in place is an issue, and avoid having one in place. This practice is unlawful in most cases and contradictory to compliance.

It is easy to understand how payroll works for small businesses, but when pensions enter the picture, it gets a bit more complicated. Which is exactly why Husky can help you with both, for your peace of mind. 

Why you need this payroll service for your business

A payroll manager is a great solution to your business. This is because:

  • it’s a cost-effective way of doing business and ensuring that all processes run smoothly. You avoid fines and extra costs and payslip mistakes, by having a professional by your side.
  • and this return of investment that you get back, you can reinvest it in parts of your business that matter. It is a growth strategy.
  • you don’t have to deal with compliance anymore and second guess whether you are doing payroll right – it is taken care of for you.
  • When you combine it with Husky’s service, you are able to make informed decisions on pensions for your employees, securing their financial future.
  • With Salary Exchange, you can give more to your staff and make great savings for your business. This is all implemented by Husky at no extra cost.

Payroll, pensions and Salary Exchange are made easy now, and are all in one place. Trust Husky to help you with your payroll by getting in touch with us today. 

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