How to prevent common small business payroll mistakes

Dec 31, 2020 | Blog

A smooth-running payroll system is vital to the success of any small business. Staff payment problems can lead to low morale, poor productivity and perhaps even a Revenue audit.

Payroll needs planning

Payroll responsibilities can seem daunting when you first start a small business. But with a little care and planning you can avoid the common mistakes others make.

Planning will mean that staff are paid regularly and on time – always a happy outcome. It will also ensure that your payroll records are up to date and meet legal standards.

Tick all the legal boxes

Payroll is covered by tax law, which is complex – wherever in the world you do business. The penalties for errors can be high. Even the cost of an audit can bankrupt a small business.

You can stay on the right side of the law through accurate payroll accounting.

Small business payroll: points to consider

  1. Statutory maternity or paternity payments – make sure you track leave start and end dates.
  2. Understand any tax exemptions – these may apply to certain pay components.
  3. Benefit plans – ensure that your employees are offered the benefits for which they are eligible, when they are eligible.
  4. Statutory holidays and holiday accrual – ensure that you factor in holidays and calculate what’s owed at the end of employment for holidays accrued.
  5. New joiners and leavers – make sure they are included in the system, with the correct start and end dates.
  6. Employee expenses – some governments need these to be taken into account as taxable benefits.
  7. Meet important deadlines – tax payments and reporting to the appropriate government authority is important to get right.

Payroll is important not only from a financial point of view, but it directly affects your employees so it’s key to the success of your company.

Meeting the above payroll obligations as an employer can be incredibly daunting – by outsourcing your payroll obligations to Dublin based Clear Group – you can be assured your payroll will be taken care of professionally, efficiently and on time.

We provide a complete payroll service on an on-going basis throughout the year, we file your returns on an on-going basis and at the year-end provide your employees with P.60’s and file the P.35

Calculating hours or work and the payment of expenses are quite complicated and are a considerable burden on a lot of employers. By partnering with Clear Group, we can relieve you of this burden.

We offer a great value, flexible payroll outsourcing service for businesses across Dublin and Ireland nationwide. So why not contact us for a tailor made quote, we would be delighted to speak to you.

Call Us on + 353 1 968 0663or email info@cleargroup.ie