Expert Guidance on Payroll Record Keeping for Employers
Accurate payroll is not just a compliance requirement, it’s key to achieving high quality and trusted businesses. With over 90% of UK businesses admitting to making payroll errors monthly, due to the complex nature of creating and maintaining payroll records. This can lead to costly penalties for employers and issues with employees.
Payroll solution services provide expert guidance and solutions on record keeping for employers. To ensure businesses create accurate, compliant payroll and reports. Offering tailored support to suit the needs of a range of businesses, no matter the size.
What are payroll records?
Payroll records are documents that employers must use to keep track of the employees wages. They contain a full breakdown of hours worked and any deductions ensuring they are compliant with HMRC checks, and can be used if any disputes are raised.
Key payroll records you need to keep
By law, key payroll records must be kept and have details of all information as follows:
Employee’s personal details - name, address, national insurance number and tax code
Employment information - Job title, start date and end date of the pay period, hours worked, rate of pay, overtime and bonuses
Deductions - Income tax, national insurance, pensions and student loans
Statutory payments - sick pay, holiday entitlements
Payroll giving scheme donations
National minimum wage records
P60 records
P45 records
HMRC reports
How long you need to keep payroll records
Employers must retain these records for a minimum of 3 years after the end of the tax year for legal compliance. However, some records that detail employee pay, tax and working hours may need to be kept for up to 6 years to comply with other regulations such as the national minimum wage act and any dispute cases.
Specific records are detailed below:
| Record | Years |
|---|---|
| Employee personal details | 6 years |
| Employee information | 6 years for wage records |
| Deductions | 3 years |
| Statutory Payments | 3 years |
| Payroll giving scheme donations | 3 years |
| National minimum wage records | 6 years |
| P60 & P45 (after the end of the current tax year) | 3 years |
| HMRC reports | 3 years |
Employer responsibilities for statutory payments payroll
If the employer manages the payroll in-house they are legally responsible for accurately processing statutory payments. Managing payroll is more than processing payslips, it includes strict legal procedures and can put businesses at significant risks if filed incorrectly. HMRC can choose to inspect payslips at any time, they will ensure the correct action has been taken when it comes to data protection, GDPR.
HMRC checks
HMRC complete inspections of the records when they choose to at any point in the year, to ensure tax and statutory payments have been correctly submitted for each employee. If they find the records to be inaccurate or late being submitted they can apply penalties to the business.
Data protection and GDPR
Employees are under obligation to safeguard employee data, such as their bank details, national insurance number and tax codes. Under GDPR regulations employee information must only be stored for as long as legally necessary, any breach of this has severe consequences.
Disputes
Employees may challenge payslips and ask for clarification on the details for the month of pay. Accurate records are essential in these situations to ensure disputes are settled quickly. If the employee is not satisfied with the outcome, they can choose to make a grievance with HMRC directly.
How Payroll Solution Services can help
Payroll solutions aren't as simple as keeping an accurate record of payslips, it involves data protection, GDPR and making sure you are compliant with HMRC.
At Payroll Solution Services, we are experts in record keeping, with a team of experienced payroll professionals to manage every aspect of the process for businesses of all types. We send real time updates to HMRC to ensure auto-enrolment and that each payroll is accurate, secure, and fully compliant by law.
We improve business reputations by increasing employee satisfaction rates, all while reducing the workload for in-house teams. With us, you gain a partner to handle payroll with expertise, and produce a personalised plan to meet the business needs, confidently providing a compliant and accurate service you can rely on.
Scalable payroll solutions for every business type
From Sole Traders and SMEs to large enterprises, we provide a personalised payroll solution for every business type. Let us take care of your payroll record keeping, always accurate, secure and fully compliant.
Fully Managed Large Enterprise Payroll
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Comprehensive payroll management
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Tax filing and compliance
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Direct deposit and payment options
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Year-end reporting
Payroll Bureau Services
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Efficient payroll processing
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Flexible service options
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Data integration
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Support and training
Construction Industry Scheme
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Specialised payroll services
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CIS deductions and reporting
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Verification and validation
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Detailed statements
Let us do the admin for you
We’ll take care of your payroll record keeping, so you can focus on growth. Speak to a member of our team so we can get an idea of your business needs.