Yesterday, Chancellor Jeremy Hunt presented his second Autumn Statement, but with a very different tone to the gloomy announcements made this time last year. The Chancellor announced initiatives with a massive focus on pushing growth in the economy. The main question you’ll all no doubt have is… “how does it affect me?”, let’s take a look…
National Payroll Week: Appreciating the importance of payroll in UK Businesses
4 September 2023
Sherrie Sparks
Ambitious Startups, Accounting & Compliance, Payroll, Building a Business
Business operations are built up of many intricate and essential processes.
Whilst some overlook the importance of a strong payroll function, it is without doubt a key pillar in the success and sustainability of a business.
National Payroll Week 2023: Keeping the UK Paid
Employee satisfaction and legal compliance are hugely important to any businesses – whether you have 2 staff or 200 without a doubt they are all reliant on your payroll team!
The payroll team at Friend & Grant are dedicated to supporting our clients with payroll services and are constantly on the lookout for ways to improve our offering.
This week we join in celebrating “National Payroll Week 2023: Keeping the UK Paid” to show our appreciation for our own payroll team and to highlight just how important a strong payroll function is within any organisation.
Dubbed “the underdog”, payroll is an incredibly broad term.
In this blog we break down how payroll really has an impact on a business:
Employee Satisfaction and Retention
A well-managed payroll system goes hand in hand with satisfied employees.
Employees like to feel safe in the knowledge that they can rely on their salary payments to be made regularly and on time with all deductions taken care of and easy access to important document such as payslips and P60’s.
The UK has a competitive job market meaning retaining valued and skilled employees is crucial.
A streamlined payroll process demonstrates professionalism and commitment to a company’s workforce whilst also ensuring trust between employers and employees.
Compliance with Complex regulations.
Navigating UK tax regulations, pension contributions and national insurance can become overwhelming.
These things are often reviewed and updated with new legislations published – and non-compliance can be detected in a heartbeat leading to hefty fines and legal troubles.
Payroll services serve to keep you up to date with shifting legislation and ensure businesses stay on the right side of the law.
From real time information submissions to auto enrollment in pension schemes, having a payroll expert ensures your business is compliant, supporting your businesses reputation and financial stability.
Accurate Compensation calculations
Whilst there are many ways to introduce automation to your payroll system you will still need a trained eye to review the calculations.
This can include calculating compensation for variable salary employees, holiday pay, bonuses, and even maternity allowance.
Having a trained payroll professional on hand to ensure your payroll is correct, as well as ensuring you are claiming for allowances, is an essential function in your business.
Accurate Financial Reporting
Without accurate reports it would be impossible to make any strategic decisions.
A well-structured payroll system has the capability to generate reports that assist with budgeting, forecasting and performance analysis.
This data driven approach empowers UK businesses to allocate resources effectively and aids is in identifying areas for growth and improvement.
Summary
The impact of effective payroll management extends far beyond just distributing payslips.
National Payroll week is all about celebrating the UK’s payroll professionals and recognizing the profound impact their commitment and expertise plays in nurturing business stability and success.
As we can see from some of the examples given above without dedicated payroll professionals businesses would suffer and many would struggle to survive.
A strong and effective payroll system should never be underestimated. Businesses that are unable to manage payroll internally very often outsource the service.
Contact Us
If you would like assistance with your business payroll function and would like to speak to us about the payroll services, we offer, please call us on 01634 73130 to discuss your requirements.
Our Services
To read more about our services please see our related pages below:
Blogs related to Payroll
Take a look at our other blogs on the topic of payroll:
What is salary sacrifice and how can it save me tax?
The content in this blog is correct as at 30th August 2023. See terms and conditions.
