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Payroll management

Paying staff what they’re owed is crucial to running any business. However, it’s something that many get wrong, which is where our payroll management service comes into the picture.

If your business is struggling to juggle employee records, tax codes, and pension contributions, we’re here to help. Taking away the time, stress, and risk, we take payroll off your teams’ desks and run it seamlessly in the background. This keeps businesses compliant, and employees paid accurately and on time.

What is payroll management?

Payroll management is exactly what it says on the tin. It’s how a business manages the payments of its employees’ salaries.

This means making sure everything is paid on time and correctly, with relevant deductions and contributions handled. Done properly, and staff are kept happy while businesses stay compliant.

A typical payroll service can vary in complexity and can include:

  • Calculating gross to net pay for each employee

  • Preparing any overtime and zero-hour calculations

  • Deducting Income Tax, National Insurance, and student loan repayments

  • Handling employer contributions like National Insurance and pensions

  • Producing payslips and year-end documents such as P60s

  • Reporting employees’ taxable expenses and benefits to HMRC through your organisation’s payroll software and paying tax on them throughout the year, or completing and submitting to HMRC at the end of the tax year a P11D for each employee with taxable expenses or benefits that were not payrolled

  • Submitting Real Time Information (RTI) to HMRC

  • Managing auto-enrolment pensions

  • Recording statutory pay requirements.

All of these can be complicated for businesses to handle in-house and can soon become a minefield of regulation, paperwork, and deadlines. That’s why outsourcing makes so much sense for businesses.

Why is payroll management important for businesses?

Payroll isn’t as simple as paying people what they’re owed. It can result in serious consequences for businesses if not carried out, including:

Compliance risks

If businesses submit payroll requirements late or inaccurately to HMRC, there may be fines to pay.

Erode employee trust

Delays or errors with payments can damage employee morale and lead to staff complaints. Repeating this issue can erode trust to the point of people leaving an organisation and reputational damage. This is common in hospitality and events, where staff numbers fluctuate and payrolls can be hard to keep track of.

Reduce business efficiency

Time spent fixing payroll problems is time not spent on growth or day-to-day business operations.

Wider financial impact

Payroll data feeds into everything from cash flow forecasting to business tax planning and reporting, all of which can help businesses grow.

Accurate, efficient payroll is therefore part of a much wider service, protecting team members and the business. It also links directly to bookkeeping, tax planning, and cash flow management, connecting with the majority of different aspects of your finance function.

Five payroll mistakes businesses often make

Here are some of the most common mistakes businesses make when it comes to their payroll management responsibilities:

1. Missing deadlines

RTI submissions must be made on or before every payday. Many businesses forget this, miss them, and receive fines as a result.

2. Incorrect tax codes

The wrong tax code means that the incorrect amount of tax is paid. This could be over or under the required amount, which is frustrating for staff dealing with it and difficult to correct after the fact.

3. Forgetting about pensions

All businesses must provide a workplace pension scheme, otherwise known as “automatic enrolment”. Failing to do so or setting it up incorrectly can result in fines from The Pensions Regulator.

4. Manual errors

This one applies to so many aspects of accounting, and it’s something we see a lot when businesses manage payroll in-house. They rely heavily on spreadsheets and manual calculations in addition to their payroll software, which creates risks and leads to mistakes.

5. Out-of-date records

Keeping payroll records up to date includes keeping track of any new starters, staff who leave, and any changes in circumstances. This kind of information needs updating swiftly, or payroll can go off track.

How we can help

At Framework, our payroll management service is comprehensive and built around your requirements. We handle everything with care and precision, ensuring compliance and clarity. We can provide the following payroll services:

  • Processing payroll

  • Handling PAYE, National Insurance, and other deductions

  • Managing pension contributions and auto-enrolment compliance

  • Submitting RTI reports to HMRC on time, every time

  • Providing digital payslips, P45s, and P60s for employees

  • Processing expenses and benefits

  • Calculating and processing statutory payments

  • Maintaining accurate employee records and handling queries.

With everything managed for a fixed fee, there are no hidden surprises. We also explain everything in simple language with no jargon. Making sure employees are paid accurately and on time, and compliance is covered, we remove the stress of admin and help leadership teams focus on strategic priorities.

Find out more

Get in touch to discover how we can help your organisation manage its payroll.

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