Prime Accountants warns businesses not to let their payroll spook them

With 39 per cent of SMEs still managing payroll in-house, according to research by Pay Captain, Prime Accountants is warning businesses not to underestimate the risks of payroll errors this Halloween season.

Prime Accountants, a leading Midlands accountancy firm, says businesses handling payroll internally may be exposing themselves to unnecessary financial and compliance risks.

Martin Farrell is the senior payroll manager at Prime. He said: “Payroll errors are more common than you would think.

“Sometimes issues are as simple as a miscalculation of wages, but other times, issues can arise with worker misclassification, which is much more serious.

“If a tax code is entered into systems incorrectly, workers can miss out on that much-needed money that they are relying on to make it until the next month.

“Errors can also come back to haunt employers. If payroll reporting deadlines are missed, businesses may face automatic penalties from HMRC.”

A report by People HR found that almost 64 per cent of employees have been paid incorrectly, which prompted Martin to tell us what businesses can do to ensure proper payroll procedures.

He said: “Many businesses will just need to tighten up their systems by using automated systems or by keeping a closer eye on when employees work hours.

“However, we know that this can come to be a big commitment, so we recommend that employers consider outsourcing their payroll.

“When payroll is outsourced, businesses save their precious time, and instead they get to do what they do best, running their business.

“There is also the consideration that should be paid to the cost efficiency of outsourcing payroll. Outsourcing avoids the expense of hiring dedicated staff and can help to prevent tax penalties.”

These are just some of the reasons why Martin believes that businesses should be outsourcing their payroll.

Martin said: “If your business wants to avoid a payroll scare this Halloween, don’t hesitate to get in touch with our team at Prime.

“We are always here to support businesses with their payroll to ensure that they are working in the most compliant and cost-effective way possible!”

For payroll support, contact Prime by visiting primeaccountants.co.uk or calling 0121 711 2468.