When we do your payroll here is what happens:

  1. Update your payroll account for any changes such as new starters and changes in pay.
  2. Calculate the deductions required, such as PAYE, NIC, and student loans. Also, pension if we do that for you.
  3. Process any leavers and prepare a P45.
  4. Submit the necessary reports (pay run details, P45s) to HMRC every time, and every year.
  5. Email payslips to employees (if we use our own software this only happens if it has been set up on request).
  6. Upload to Iris Openspace the payslips, P45s, pay summary and the employer payment report. Also a pension summary if we do that for you.
  7. At the end of the tax year, we provide the annual summary for you to check and approve, and P60 forms for you to provide to employees.
  8. If necessary we also provide P11d forms when you provide the details soon after the tax year.

We will upload all of the payroll reports to Iris Openspace or we’ll let you know when they are available on your accounting software.

If we use our own payroll software and we have set up employee email addresses on it, payslips will be emailed to employees. If so, the employees will have access to their own payslips and other forms e.g. P60. Otherwise, you will need to distribute payslips etc to your employees.

If we use other software, such as Xero Payroll, the payslips will be emailed to employees. You will need to distribute any other forms.

We need to do your payroll as and when you pay your employees. Most of our clients pay their employees monthly towards the end of the month. We do monthly payrolls on or around the 23rd of every month. The December payroll will always be done before Christmas Eve.

We can do weekly payroll Tuesdays, Wednesdays, or Thursdays.

Please bear in mind, that we sometimes need 10 days notice to make changes to the payroll. So if you pay weekly, or you pay monthly and don’t let us know between the 20th and 23rd of the month, you may need to wait 10 days for that change.

Every time your payroll is due to be done soon, we will email you a reminder of what we might need.

You will need to let us know straight away if changes are required (compared to the previous payroll). This will avoid us going ahead and processing incorrect pay details. Then, once you know the details of those changes, let us know what those changes are. This could include changes to pay, people starting, and people leaving. 

For any leavers, let us know the last day of employment and the final amount to pay (e.g. holiday pay).

For any starters, please provide all of the following: HMRC starter checklist (latest version); P45 (if applicable); start date; pay details; usual weekly hours; email address.

To start doing your payroll, we will need the following information:

  • Employer PAYE reference
  • Employer Accounts Office reference
  • Employee payment report (P11) for the tax year so far
  • Employer payment report (P32) for the tax year so far
  • Details of each employee
    • full name
    • date of birth
    • address
    • NI number
    • PAYE tax code
    • email address
    • usual pay amount
    • usual weekly hours worked
    • type of student loans owed
    • starter checklist (if new)
    • P45 (if from the same tax year)