Payroll management in your Dartford business is a critical task for the success of your business. Apart from ensuring employee satisfaction, it is an area that can affect your company reputation and lead to issues with authorities if not done right.

Here’s how to do payroll in your Dartford business the right way.  

Figure out the method of hiring 

Payroll is an essential aspect of any business that houses some kind of staff. Correct management of payroll can be an easy task if you have a professional in your team. There are two ways to hire an accountant to do the payroll for you.

 You can either 

  • Hire in-house accountant 


  • Hire a payroll service 

Both have their advantages and disadvantages. More accurate results and availability on the premises are what an in-house accountant can provide you. When it comes to outsourcing payroll management in Dartford, you can expect more cost-efficiency, flexibility, and support from different expertise levels. Think long and hard before deciding so that you can do the payroll more productively. 

Introduction of the new employee to the HMRC 

When you are making a decision, the next step is to inform the HMRC about the new employee. Ask the new employee to hand over a copy of their P45 form. The P45 form shows the information on salary, tax, and national insurance values from previous jobs.

When this information reaches HMRC, they will perform a series of checks on their insurance band, tax code and inform you what and how much is needed as payment on their behalf. This also includes deductions from PAYE. PAYE or Pay As You Earn refers to paying your taxes as you earn your wages. If any business uses the PAYE system, software that gathers and sends information about it in real-time must be present. 

Usage of payroll software 

Whether you are going to manage your payroll in-house or not, you will need reliable software. The task of this software is to manage and report payroll information to HMRC.

There are many to choose from, and you must do your research before selecting one. The output of the business, its scale, and the production process are some of the deciding factors when choosing payroll software. Plans and the direction that the business is heading towards will also be important in this decision-making. Since changing the using software can be costly, take your time to decide on the software that suits your business the most. 

Follow the rules and regulations for proper payroll 

Handling the payment of wages of the staff is no simple task. There are lots of guidelines that don’t meet the eye. Proper knowledge of laws surrounding employee payments must be at your disposal if you are to avoid any costly mistakes. The first and foremost thing to focus on is the minimum wages of an employee. The below stated are rates from April of 2022

  • Apprentice employees £4.81 
  • From ages 16-17 £4.81 
  • From ages 18-20 £6.83
  • From ages 21-22 £9.18 
  • From ages 23 and over £9.50 

These values are constantly changing and stay up to date by referring to the latest information supplied by the HMRC. 

Pensions and maternity or sickness leaves are also important aspects to consider when doing the payroll.

Paying employees a workplace pension was part of the Pension act of 2008. A reasonable amount considering things such as age, earnings, work period needs to be paid as a pension to employees who no longer can work. The laws of the UK also state a statutory pay must be paid to the employees on maternity or sick leaves. 

Know the penalties for payroll errors 

Making errors while doing the payroll can be costly to any business. There are a few ways errors can occur while paying your staff.

Failing to submit full payment submissions before payday can lead to penalties. Late sending of the full payment submission or sending the incorrect number of reports can also lead to fines. They can range from £100 – £400, depending on the number of employees. 

Outsource your Payroll in Dartford 

Managing the payroll is a delicate task, and making mistakes can lead to some serious financial implications. To avoid any mistakes like that, hire a payroll service in Dartford.

The best way to go about accountant hiring is to outsource the whole process. A capable outsourced accountant will handle the payroll without any errors. Paying the right amounts, managing report submissions and tax payments will also be easy tasks with an accountant by your side. 

Pay attention to the experience, credibility, credentials, and customer feedback when you are searching for accountants to outsource payroll management in Dartford. Make sure to perform a good background check to select the most suitable candidates.

Need help with managing or optimizing your payroll process. Let our payroll experts help you. Get in touch for more details. 

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