It is essential that you audit your payroll processes and procedures regularly to ensure you remain compliant and up to date with the current legislation and procedures, failure to do so could result in costly penalties.
There are a number of key considerations when auditing payroll processes and procedures, including:
The accuracy of data
It is important when inputting employee data, that you ensure it is accurate and up to date. If any of the data is incorrect, even with something minor, it could lead to some very unhappy employees or worst case, substantial penalties. One way of looking to mitigate this is to consider outsourcing your payroll so an experienced payroll team can handle the process for you, ensure the correct procedures are followed and the latest legislation is being adhered to.
Limitations due to time and available resources
Payroll procedures can be timely and costly when completed in-house and may take time away from your main business focus. This could potentially lead to inefficiency and low productivity in the future. Having an outsourced payroll provider could free up some time for your team to focus on other areas of the business and your main objectives.
Legal compliance
With the ever-changing laws around employment, it is easy to get lost and lose track of the latest regulations. This could lead to information being missed, incorrect calculations and therefore disgruntled employees, time wasted and unnecessary confusion.
Ensuring you adhere to pension and tax regulations
Like employment laws, tax and pension regulations are continually changing and with their complexity it is essential you follow the procedures and processes correctly to avoid legal penalties. Our payroll team continually reviews legislation from HM Revenue and Customs and The Pension Regulator in order to relay this to clients and act upon changes required. We also work alongside our expert tax team to assist with all areas of employment taxes and global mobility.
GDPR compliance
Businesses that use an in-house payroll system could be at risk of data breaches or cyber-attacks. When dealing with sensitive data it is crucial that you have the correct security in place to avoid the risk of potential legal penalties, along with the reputational damage any failings could bring.
Find out more
Our comprehensive payroll support service aims to take care of all the administrative burdens surrounding the payroll process to ultimately make your life easier, increase efficiency, save time and reduce costs.
For further information or to discuss the possibility of outsourcing your payroll, please contact PM+M’s director and Head of payroll, Julie Mason by clicking the button below.
