Answer: A payroll service is a professional solution that manages the payroll process for businesses, ensuring employees are paid accurately and on time while staying compliant with tax regulations. Payroll services handle tasks such as:
- Wage Calculation: Determining employee salaries, overtime, and bonuses.
- Tax Deductions: Managing PAYE (Pay As You Earn), National Insurance (NI), and other withholdings.
- Payslip Generation: Issuing payslips for employees.
- HMRC Compliance: Submitting payroll reports via Real-Time Information (RTI) and handling year-end filings.
- Pension Contributions: Managing auto-enrolment and pension deductions.
Businesses can choose between in-house payroll software or outsourcing to a payroll provider. Outsourcing is often preferred as it reduces administrative burden, minimizes errors, and ensures compliance with UK employment laws.
