The payroll process has a major impact on your business. It seriously impacts the success of your business in both the accounts side of the business and the HR side of the business too. In this blog post we look at the impact payroll has on a business and why you might want to consider outsourcing your payroll to our professional payroll team in Peterborough.
Payroll affects the accounts side of the business as each year you need to report the net profit of the business. To do this correctly, you need to pay your employees correctly and report it correctly too. If you report your net profits late or wrongly this can result in charges, late fees or inspections from the HMRC.
Your payroll processes your business on the HR side of things. Every business wants happy employees. For this to happen you need to treat your employees and this means paying them on time and with the correct amount. If there are errors in your payroll this could mean that employees are paid too much or not enough. They could be paid later than expected or pay too much or too little tax on their wages.
If your employees pay the wrong amount of tax, they could be left short of money. Alternatively, they might not pay enough tax, and this could mean they have to pay a bulk amount at a later date. This is something your employees might not be prepared for and it could result in them having some serious money problems.
When employees aren’t happy with how they get paid or the mistakes in the payroll they will become annoyed. This will affect their productivity at work and the overall team morale too. Making sure that your employees are paid correctly is one of the most basic requirements for ensuring your team feel valued and safe within your business and their job.
Research shows that around 50% of employees leaving their job do so because they feel their employer doesn’t care about them. Employees that are paid late or incorrectly will definitely fall into this category!
For these reasons alone, we are sure you can see why a working payroll system is so important to businesses. Risking your payroll means risking your entire business. If you want to make sure your payroll doesn’t let your employees or your business, call us now about outsourcing your payroll in Peterborough.