Payroll manages all the payments made from the company to individuals, and displays the total taxable income, tax payable and net income for each individual using payroll.
Payments can be made in the form of:
- other income
The tax bands, tax allowances and other payroll information is already setup, all you need to do is add the users and setup individuals payments.
Any individual added as a user into your company can use payroll, you can also limit who can access, use and see payroll – making sure everyone’s data is secure and private.
Salaries can be setup for individuals, this permits regular monthly payments with no further input required. Change salaries and stop salaries as required.
Individuals tax and national insurance payable is shown, and all the accounting is completed automatically as each payment is made.
See a quick overview of salary below:
Non-regular payments, one off payments, can be made in the form of bonus payments. See our brief overview below:
Payments are made to shareholder by dividends, these attract different tax rates and rules to salary and bonus. Payroll takes care of all of that for you. See a brief overview of dividends below:
Any income which does not fall into the above categories can be entered into the category of “Other Income”, flag whether it is a dividend payment or not, and the rest is taken care of.
Automated Monthly Payroll Run
The payroll run happens monthly (end of each month) automatically, no input is required from any user. The payments are made into the individuals payroll records and into the accounting records of the company.
Once the monthly payroll run has been completed, payslips for each individual are made available.
Individual users get access to their payroll records, and only their payroll records, through My Earnings. Users can enter other income so this becomes their central record of tax payable to HMRC.