20 Jul Why is getting payroll correct every time still important in 2021?
Whether it is in terms of small business accounting or accounting for larger limited companies, payroll is a key piece of the pie. It is hugely important for any business which employs staff and is something which you must get right.
In simple terms, it involves keeping an accurate record of your employees’ details, what hours they worked and how much they should be paid each month. It also involves paying them the correct amount on time! A key part of running your payroll is also reporting the relevant details for each staff member to HMRC. This involves working out how much should be deducted for tax/National Insurance from their gross pay each month and paying this to HMRC.
But just why is this so crucial for any business still in 2021?
In 2021, the morale of your team is as critical as ever. Your business will not succeed if you have employees which are deflated and demotivated. If you get their pay late to them each month or it is always wrong, your staff will soon feel annoyed. Getting their pay to them on time and for the correct amount, however, keeps them happy and motivated.
Avoids problems with HMRC
Another reason to get your payroll right in 2021 is the avoidance of HMRC problems. If you report the wrong details to them, do not adhere to the latest guidelines or calculate the wrong amount of deductions, it could spell trouble. This is certainly true when you think of the hefty fines which can be applied by HMRC if you have not adhered to the correct regulations. Constantly getting payroll reporting wrong may also make them suspicious of your activity and trigger a tax investigation.
Saves time and hassle
All entrepreneurs know that time is money. With this in mind, you only want to be calculating and running your payroll once each month. Any time spent fixing mistakes and re-running it afterwards is very costly for your organisation. Having to fix payroll mistakes is also a hassle and can sometimes be complex to sort out. It goes without saying that this is something for business owners to avoid.
Let SQK Accountancy help with business payroll in Manchester
The above reasons show why getting your business payroll right is still vital in 2021. But what if you do not have the time, skills or experience to handle it yourself? For businesses in Manchester, SQK Accountancy can help. Our payroll services take care of it all for you and ensure it is done right every time. Get in touch on 0161 706 0444 for more details.