There are a few pitfalls you need to be aware of when first thinking about employing the services of a payroll company. Just because you have handed over this part of your business to a third party does not mean that it will automatically run as smoothly as it should. There are certain things that can often go wrong because they have been overlooked and these are listed below:
* HM Revenue & Customs have strict regulations that have to be adhered to at all times. This includes being familiar with updates to PAYE. They regularly issue notices with any changes that have or are about to be implemented. A customer must be confident that the payroll company they are employing keeps up to date with all these changes and update employees’ records accordingly.
* Reliability in issuing pay slips to customers’ employees is absolutely crucial to keep staff happy in their workplace. Should anything happen so that their salaries are late arriving it will cause unnecessary stress to both the employees and the employer.see more payslip information at http://www.fairwork.gov.au/pay/pay-slips-and-record-keeping/pay-slips
* You have to be certain that the company you use keeps to the deadlines set out by HMRC because if these are not met you will liable to penalties which can be quite severe and the fines will fall on you.
* Payroll companies should and must have sophisticated computer programs and software to handle the requirements of their customers. Their staff must be highly trained in using all the software they have on their systems. Should software problems occur in the payroll companies systems, it is the customer who pays the price for the subsequent delays or errors. This could cause serious problems not only with their employees but with HMRC too.
* HMRC require that all records be kept for a period of seven years so that if at any time during this period they need to see them for audit or other reasons, they are available to them. The fines for not keeping records for the specified period of time, again falls to the customer.
* Make sure that the company you decide to use actually keeps all your information in their data base and not in hard copy form. This will mean that information will not get lost or mislaid as was often the case with hard copy files.read latest news here!
* Ask the payroll company what kind of back-up system they use for storing your valuable information and ask if these records are kept offsite. This will reassure you that if the company has any problems with their system or software, your information held with them will not be affected.
* It is wise to find out if the payroll company operates a compatible computer system as this will mean that all information can be sent directly to them via the Internet. The information remains secure at all times and speeds up the time it takes for the payroll company to receive it.
If all the above is avoided and the payroll company is able to supply the necessary services without encountering the problems mentioned, they can provide a very valuable service to many small, medium and large businesses. There will always be the human error factor that has to be dealt with at some points in time, but if the payroll company knows their job everything should run smoothly for them and their clients.