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What you need to know about payroll services
In any business, whether you employ one person or a hundred, the payroll is an important occurrence in any company. An unavoidable and inevitable process, your need to pay your staff and employees for their work is a critical part of any business. Not effectively doing this, for instance, will disturb the workforce and slow down productivity, to say nothing on the various legal risks you would be exposed to.
What is a payroll service?
To this effect, you need a reliable payroll service. In short, a payroll service is an outsourced agency that deals with your accounts when paying your staff. This can be another accountancy firm or an online service, the choice is up to you.
This service takes in all the relevant information, such as each employee’s name and the hours worked, that you give them each month to determine how much each individual staff member has earned in that period. From this, they can then access your accounts and distribute the money accordingly.
Likewise, any reliable payroll service needs to take care of taxes. Not complying with income tax, for example, is illegal; this is something that needs to be paid and deducted from the employees before the money reaches their personal accounts.
A payroll service will ensure you are compliant with any taxes in this regard, as well as any other legal requirements. Not only does this ensure keeping your employee’s happy, it ensures that the company is above board and operating legally.
Labour and Time
Just as important is the fact that a payroll service will free up your work and time. Most payroll services will operate on direct debit, paying directly into staff accounts. This streamlines the process and saves you from having to pay each staff member on an individual basis.
It also ensures that both you and your work force aren’t spending company time worrying or looking over these finances. By using a professional payroll service, such as those offered by Sage One, you will all be safe in the knowledge that the payroll is being taken care of.
This saves having an expensive in-house accountancy team to go over something such as the pay roll. It is a time consuming process that takes up much of an employee’s time. By outsourcing the payroll, you’re removing this need to actively monitor every transaction, freeing up employee time to better focus on other key areas within the business.
Finally, a payroll service needs to be regularly accessible. It’s your business and money, after all. Whilst you are entrusting it to the service to pay the customers, you should still be able to access the financial information and monitor the situation should you wish.