11 Jun Could your payroll services end up being a nightmare for your business?
Getting your payroll services right is vital for the smooth running of your business.
Some recent payroll nightmares have highlighted the impact problems can have on your staff, your suppliers, your business, and you.
Having disgruntled staff can lead to serious problems, so handling your payroll services correctly is the bedrock of building your business.
Two recent stories caught our eye.
One company apologised to its staff for errors after it took over a cleaning and support staff contract and there were issues with back pay and payment dates.
The business said it would meet any additional costs staff incurred. Some staff had reported not being able to afford to get to work and food donations were collected for some of them.
And staff at a warehousing company reported problems with a mix up about a lack of overtime payments for some workers, and deductions for some overpayments for others.
The company said its payroll vendor had experienced an issue and it had worked to resolve the matter quickly.
What are the main payroll pitfalls?
People not getting paid on the right date– Many people have bill payments which are timed around their monthly salary payment, so this can be a real headache for employees. Some are also stretching their wages out every month, so making them last even longer can feel hugely daunting, even when you know you will be paid at a later date.
Workers failing to get the correct payment – Being underpaid causes huge problems for employees. They may not be able to pay bills and they may become overdrawn at the bank, accruing interest. If they are overpaid, this also causes problems for both workers and business owners. You need to get the overpayment back, but most employers understand there needs to be good communication with the employee about when deductions will be taken from their salary.
Incorrect tax codes– This can be so frustrating for an employee. Being on the wrong code can cost them dearly every month.
Incorrect deductions– For National Insurance and pension contributions. If you have inexperienced staff, this could go on for months before it is rectified after an employee notices something amiss on their pay slip. This problem can also contribute to keeping incorrect business records generally, something could land a business owner with a fine from HMRC.
All of these problems could have a major impact on staff morale and the efficient running of your business. In the worst cases, it could encourage good staff to leave you.
So, what could you do to prevent a payroll problem?
Find an experienced payroll provider who understands the importance of getting it right. Don’t be tempted to try to do this yourself, as trying to save a few pounds every month on such an important part of your business could cost you thousands in the long term.
Why choose Balanced Up Bookkeeping for your payroll services?
- We use HMRC approved payroll software.
- We provide new employer registration and set up with the HMRC
- You can get monthly & weekly payroll processing
- We deal with statutory payments
- Your staff get payslips via an online portal
- We deal with employer reporting available via an online portal
- We handle RTI submissions
- We look after the whole process for you