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How to avoid the 7 Payroll Pitfalls?

Over the years, MP Payroll Solutions have provided outsourced payroll services to hundreds of companies within the UK.  We have a lot of experience in determining payroll errors in small businesses and how to resolve them. The aim of this post is to help businesses avoid the 7 Payroll Pitfalls. From our point of view, it seems like SME businesses make the following critical payroll mistakes:

  1. Correct payroll personnel

    The lack of technical payroll knowledge is a common concern. For instance, payroll personnel that are unfamiliar with the in-house payroll system will result in payroll mistakes.  Therefore, adequate training or outsourcing your payroll will eliminate any critical payroll mistake.

  2. Becoming compliant

    HMRC requires employers to submit period payroll files, specifically RTI, and account for tax as well as national insurance at source. All too often this doesn’t happen and as a result, employers end up in arrears with statutory payments. Employers can also download tax code notices directly from HMRC and this too gets missed. As a result, you may get disgruntled employees, as they end up underpaying tax.

  3. Staying updated with UK legislation

    There is always HMRC legislation to consider and ensuring that any changes are implemented in a timely manner. Failure to implement can have severe ramifications. In addition, with the arrival of GDPR, it’s important that employers remain compliant with the latest GDPR requirements. As a result of GDPR non-compliance, legal action may be taken.

  4. Setting up an IT infrastructure

    It’s common for small companies to not back up their payroll IT systems because it’s expensive. Therefore, any payroll system issues will be extremely difficult to resolve. Backups of any payroll system should be both backed up onsite as well as offsite.

  5. Contingency plan

    What are the arrangements for continuing business in the event of a fire or other disaster? What happens if systems go down or payroll personnel suddenly leave? A contingency plan will help prevent any of these scenarios from becoming reality.

  6. Underestimating the cost

    Small business underestimate the total start-up cost to set up, as well as run, a payroll in-house. The technical infrastructure is expensive and training staff can also be costly. Read: How much does outsourced payroll cost? In addition, making these critical payroll mistakes will result in costly fines that can cripple a small business.

  7. Leadership

    Often, payroll is a standalone function and they find themselves pulled between finance and HR. This makes life difficult for the payroll function and as a result, leads to staff being confused and even demoralised. Be clear where payroll sits within your organisation and who, if anyone, they report to.

So, what’s the one solution for all the above?

You won’t have to avoid the 7 Payroll Pitfalls if you Outsource your payroll to MP Payroll Solution! All of the above problems disappear because MP Payroll Solutions is CIPP (PAS) Accredited. Therefore, we have all the above areas covered with full procedures in place for dealing with all of the issues a payroll office can face.

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Payroll

MP Payroll Solutions is now CIPP (PAS) Accredited

We are excited to announce that MP Payroll Solutions has achieved the CIPP PAS accreditation. Above all, this is the CIPP’s flagship payroll audit solution. In addition, it offers peace of mind to all who work with the industry or are seeking payroll services.

This consists of two distinct elements. Firstly, the CIPP audits the payroll process. Secondly, the CIPP audits the learning and development of our staff within the payroll function.

The CIPP Payroll Assurance Scheme is the only voluntary accreditation on the market. In addition, it offers bureau confidence in our payroll services from an audit which was approved and developed in partnership with HMRC.

What does it mean if a supplier has PAS?

The CIPP has audited and found MP Payroll Solutions to be proficient in the following:

  • They have suitable processes in place for preparing and delivering legislative changes
  • Necessary areas for development and improvement are highlighted and therefore have been actioned
  • The business is dedicated to compliance and best practice in payroll
  • Better engagement and retention of staff due to better management of the payroll function
  • The business is dedicated to life-long learning and development
  • The business shows openness and therefore mitigated the risk of compliance failures by opting to engage in PAS

What are the business benefits of the Payroll Assurance Scheme?

  • Improvements in the process have led to greater effectiveness and efficiencies within the payroll function which leads to overall time and cost savings
  • As a customer seeking payroll services, the CIPP PAS offers you clear evidence that compliance is key to a provider, therefore making your decision an easier choice
  • For an employer, this shows your existing and potential customers that you care about best practice and, therefore, understand how important it is to have all the key points of a healthy payroll function
  • Demonstrate to employees, customers and suppliers that your business supports payroll best practice by using the CIPP PAS accreditation logo on your company communications
  • Increased staff motivation and improvements in productivity. It demonstrates the business’s investment in the staff’s learning and skills development as well as the willingness to continuously review process for the better
  • Improved service levels to colleagues or customers

In conclusion, the CIPP Payroll Assurance Scheme accreditation confirms that MP Payroll Solutions is an esteemed payroll bureau. In addition, this confirms we have all the necessary knowledge and foundation to run your payroll in a completely compliant way.

Follow this link for more information on the CIPP Payroll Assurance Scheme accreditation.

About MP Payroll Solutions

We are a specialized BACS Approved Payroll Bureau with 15 years’ experience of processing payroll for clients in a variety of business sectors.

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