Payroll is defined in Investopedia as the ‘sum total of all compensation’ that a business needs to pay to its employees for a given time or period. Big companies have a Human Resources department that handles payroll. In the case of middle or small businesses, the owner or a staff can be in charge of managing payroll.
In order to process payroll, there are important steps that need to be followed. One is the accurate recording and collection of information that tell how many hours an employee has worked and determine the corresponding pay. Managing a payroll also means calculating the deductions and taxes from gross pay. After this, the net pay that the employee receives should be computed. Of course, the payment needs to be made and this can be done by a computer software or through an agency or third-party entity that processes the payroll.
Partnering with payroll services from HMRC umbrella companies like Unified Payroll helps small and medium businesses to make the process easier. From records, computations, deductions, and payments of taxes and contributions – Unified Payroll provides excellent services and assistance.