Payroll is the process of paying employees accurately and on time, while correctly deducting and reporting tax, National Insurance and other required deductions to HMRC.
1. Calculate Pay and Deductions
Gross pay, Income Tax and National Insurance are calculated for each employee, each pay period.
2. Account for Pensions
Auto-enrolment pension duties generally apply to employers, even those with a single employee.
3. Report to HMRC in Real Time
Pay and deductions are reported to HMRC on or before each payday, generally through payroll software.
This guide provides general information only. Payroll errors can affect both the business and its employees, so accuracy matters.