Payroll for small business is the focus. In the UK, Real time information (RTI) has changed payroll operation. Here are some of the features of RTI and payroll in the UK.
Payslips: These are printed to and give the employee an account of Gross pay, PAYE, and National insurance deductions, plus the employers national insurance contribution.
PAYE : Pay as you earn is tax deducted at source from employees salary
NIC Employee: National insurance contributions deducted from employees gross salary
NIC Employer: This is national insurance contributions paid by the employer on top of the employees gross salary. This extra cost is often classified as social security costs in the accounts.
Pension contributions: pensions are are a deductible expense for employees subject to the limitations set out in the relevant legislation.
RTI: payroll information is communicated to HMRC under the Real Time Information system. A filing must be made whenever employees are paid.
FPS: A Full payment submission is filed whenever a payment is made to the employees.
Year End FPS: After the last payment for a financial year is made, a year end FPS is filed,a final FPS is required even when no payments are made.
EPS: Once a month, an EPS is file where there is a need to inform HMRC about recoverable statutory payments such as SMP ,SSP, ASPP, OSPP, SAP.
Year end EPS: This is run when the timing of the final fps is uncertain.
NVR: The national insurance number verification request is sent to HMRC when you wish to verify that you have the right national insurance number(NINO) for an employee.
EYU: This is an earlier year update filing used to make corrections for filings from an earlier financial year.
P60 : The p60 is a certificate stating the employees Gross salary received, PAYE and NIC deducted, plus the NIC contribution paid by the employer on their income.
Their are a number of statutory payments, relevant when dealing with payroll for small business in the UK, these are:
SMP :Statutory maternity pay, this is payable to new mothers who take maternity leave.
SSP: Statutory sick pay is paid to employees who are unable to work due to illness.
OSPP: Ordinary Statutory paternity pay is paid to new fathers who take paternity leave to help with baby care.
ASPP: Additional Statutory paternity pay is paid is paid to fathers who take extended leave to look after newborn infants. The man wife should have come off maternity leave for a valid claim to be made
SAP: Statutory Adoption pay is paid to a employee taking time off to look after a newly adopted minor.
The statutory payments, SMP, SSP, OSPP, ASPP, SAP can be recovered against payments for Employers NIC contributions by the employer.
Payroll for small business in the UK can be challenging, should you require assistance with your payroll, we are here to help at north london #accountancy Ltd