How to use payroll to help your business
Many employers, managers and even business owners think of payroll as a ‘push button’ exercise. If you ask anyone who works in payroll if this is the case then they would strongly disagree. Due to the nature of the work we do people only tend to think about payroll if something goes wrong.
In a survey of 4000 employees, carried out by SDWorx a global payroll provider, 44% of respondents said they would consider leaving an employer if they received their salary late and 88% of those who had been paid late now had a negative view of their employer. These figures show the importance of making sure that payroll is processed correctly.
Whoever does your payroll they are likely to know more about both payroll and your business than you think they do, use their expertise to help your business grow
As a business there are many things you can do to help make sure that your employees are paid ‘accurately and on time’ as per the payroll mantra.
Although it may sound obvious, give yourself time, payroll is not something that you want to rush at the last minute and finish at 10pm the night before payday as this is when mistakes are more likely to happen. Have a cut off in your business asking for all changes to be provided by a certain time before pay day. If possible, get a second person to check the payroll before submitting to HMRC to double check as a second set of eyes is likely to see something that you may miss.
Ensure that whoever does your payroll, be it in-house, an accountant or a payroll bureau, knows what they are talking about. There are many pay impacting things that are encountered rarely in some industries, for example maternity calculations, attachment of earnings orders, termination payments or stocks and shares payments.
Do your payroll providers know what to do in these situations or are they relying on you to tell them what you want them to do? Will they give advice if something is being done not quite right or just accept what they have been asked to do?
Whoever does your payroll they are likely to know more about both payroll and your business than you think they do, use their expertise to help your business grow. Payroll often work very closely with HR and Finance functions within a business to save them time, money and effort. The payroll relationship can only be truly effective if all parties work together to get the job done, none of these are standalone roles, and even with an outsourced provider there is still close liaison between the payroll team and the in-house team.
Andi Herrington is a Director at Wallis Payroll in Wellingborough whose team provide payroll consultancy and processing services to businesses throughout the UK.
The team are happy to answer any payroll related questions you may have. Andi can be contacted on 01933 409488, or email@example.com