A lot of people don’t understand what payroll really is, who is behind itand why it’s an important skilled job. In this blog, we’re busting some payroll myths by letting you know what’s true and what’s false.  

 

Payroll is a one-day-per-month task: FALSE 

 

Payroll is an essential function within a business or an outsourced payroll company. The people who work in payroll don’t just make sure you’re paid regularly for what you’re owed each month, they also make sure the business is compliant with laws and regulations and manage payment processing daily.  

Payroll is all about numbers: TRUE… kind of.  

 

Yes, you need to be good with numbers to excel in this job, but it’s also very important for you to be an excellent communicator, and great with the organization. New tax regulations and changes in the law, all require accountants, finance officers and payroll companies to be on the front foot when it comes to making sure businesses are compliant. 

Payroll only take care of salaries: FALSE 

 

Payroll staff take care of so much more than just making sure you’re paid. They also cover:  

Processing pensions 

Calculating correct statutory deductions 

Raising invoices 

Ensuring monies due are received and more.  

 

Want to know how we can keep your business ticking over by offering compliant payroll solutionsContact our friendly, knowledgeable staff today to discuss what we can do for you. 

People often receive payslips only to quickly throw them away or forget about them. It can feel all too easy to toss them aside after you’ve checked your payment is correct, but it’s essential that you hold on to them. If you’re wondering why it’s important to keep a hold of your payslips, keep reading and let us help you understand.

Take control of your finances.

Holding on to your payslips helps you to understand your pay which is essential if you are either a permanent employee or working under an umbrella company.

Your payslips detail very important information like pension contributions, tax, and more. Keeping a hold of your payslips and filing them appropriately will help keep you informed while also giving you control of your finances.

Accuracy

You need to have all your payslips to hand in order to file a self-assessment tax-return with accuracy. And if HMRC ever enquires about proof of pay or deductions, then you’ll have everything you need at hand – even if the information you require was six months ago.

Proof of Income

You’ll need to provide payslips from the last three months as a proof of income If you are planning on buying a house, or indeed even renting. This is needed to show that you can afford your rent or mortgage payments.

Your payslips will help you to discern your maternity leave entitlement as well, if you are pregnant or preparing for maternity leave.

Payslips will also help you to understand exactly what you should be receiving for your retirement based on your pension contributions over the years.

You’ll also need proof of income in order to obtain a visa for working abroad.

How Long Should I Keep My Payslips?

HMRC recommends holding on to your payslips for 22 months (2 years), but we suggest filing your payslips and keeping them for as long as possible. This means that you can always look back to your pay at any time should you need.

Need more information? The Azure team are here and happy to help you in thinking through the ideal options for your business and putting a plan in place for your business payroll needs.

Contact our friendly, knowledgeable staff today to discuss what we can do for you.