24 May 3 costly payroll mistakes for any SME to avoid
When it comes to running an SME, looking after your payroll is a key concern. This vital area is not only important for employees but also for your business. Mistakes made here can prove very costly when HMRC pick up on them. For many businesses, this kind of scenario can easily prove disastrous for their future. Unfortunately, many SMEs make some very common mistakes when dealing with their payroll.
Here are three to be aware of and avoid!
1. Not keeping up with changes to law
One major mistake that some SMEs can make with their payroll is not keeping up with any changes to law that come into effect. HMRC can change what is needed or how things work quite frequently so you need to keep abreast of this to ensure you stay compliant. If you do not, HMRC will not let you off because you didn’t take steps to always know the latest information.
2. Late payment of payroll
You would be surprised by the number of organisations that do this! Of course, for many it can be unavoidable if the business itself is owed money for work done which they need to run their payroll. This does not take away the fact that it is a bad mistake to make though. Not only will it upset your staff and give you extra hassle, but also may break any regulations set by the Government in this area.
3. Not knowing about different types of pay
When we say this, we are talking about knowing about each in depth and how they apply. Most people have heard of statutory sick pay or paternity pay but won’t know the finer details of how they all work. Of course, when it comes to your company payroll it is vital that you do. Take the time to get to know about all types of pay, how they work and what situations they apply too. This will ensure you always report your payroll correctly to HMRC.
When it comes to payroll, the best advice is to get professional help. It is such a large and crucial area that it is simply not worth risking getting it wrong. Here at SQK Accountancy, we are fully experienced in payroll and can help you get it right, every time.