Paying people correctly.
WHAT PAYROLL MUST CALCULATE
Gross pay, from salary or hours Statutory deductions Voluntary deductions Employer contributions Net pay
WHY IT IS UNFORGIVING
Errors affect people's income directly, and are noticed immediately.
WHAT STATUTORY ELEMENTS APPLY LOCALLY
Income tax under the applicable scheme Pension contributions, employee and employer Housing fund contributions, where applicable Other statutory deductions as required
WHAT TO VERIFY
Current rates and thresholds, which change.
WHY VERIFICATION MATTERS
Incorrect deduction creates liability for the employer.
WHAT REMITTANCE REQUIRES
Payment to the correct authority, by the deadline Supporting schedules Records retained
WHAT LATE REMITTANCE PRODUCES
Penalties, and exposure for directors in some cases.
WHAT TO AUTOMATE
Calculation, schedules, and reminders of deadlines.
WHAT TO NEVER AUTOMATE WITHOUT REVIEW
The payment run itself.
WHAT TO REVIEW BEFORE EACH RUN
Changes since last period New starters and leavers Unusual amounts Totals against expectation
WHY TOTALS SPECIFICALLY
A large variance indicates an error before it reaches anyone's account.
WHAT TO RETAIN
Payslips and records, for the statutory period.
