Payroll processing and payroll advising are two very different services. It’s often a stumbling block which businesses come upon when choosing who to outsource their payroll to.
With many options on the market, both software and human based, the ‘nuts and bolts’ of what’s included can often get confusing. One particular area of confusion is payroll processing and payroll advice.
Payroll processing essentially involves the inputting of data provided into what is generally HMRC approved software which calculates the relevant deductions and payments due. With processing the accuracy of data is of upmost importance as is the knowledge of the software being used.
What payroll processing does not always allow for is the interpretation of this data and the potential wider impacts. This is where payroll advisory comes in to play.
An example of this is a new starter checklist which every employee signs when they start. Part of our payroll advisory service is interpreting the data put into these forms to ensure employees are set up correctly and taxed correctly from day 1.
Another example is holiday allowance, particularly for zero-hour contracts and understanding how changeable hours can impact on annual leave calculations and the way you calculate them.
Need more help? Need to understand your payroll better? – Reach out to us today.