Planning tips for the New Payroll Year

As a new payroll year begins, it is important for business owners to plan ahead and ensure they are prepared for the changes and challenges that come with it. In this blog, we will be sharing some planning tips that can help you navigate the change of year with ease. So, without much further ado, here goes!

Review Your Payroll System

The first step in planning for the next year is to review your current payroll system. Make sure your payroll software is up-to-date and compliant with the latest legislation. If you need to make any changes, now is the time to do so.

Check Your Employee Information

Before the new year starts, it is important to verify that all employee information is accurate and up-to-date. This includes their name, address, tax code, and national insurance number. This will ensure that you are able to process their payroll correctly and avoid any potential penalties. Keep an eye out on your HMRC PAYE account for your “P9” notices, these are the early tax code notices generated for the new tax year and will apply to staff who will not be on the standard tax code for the year. HMRC usually email these by 6th of March and post by the 19th of March.

Plan for Pay Increases

If you are planning to increase your employees’ pay, make sure to factor this into your payroll budget. You may also need to make adjustments to your payroll software to ensure that it accurately calculates the new pay rates.

Prepare for New Taxes and Contributions

Every year, there are new taxes and contributions that come into effect. Make sure to research and understand the changes so you can plan accordingly. This may include updating your payroll software or seeking professional advice.

Consider Automation

Automating your payroll process can save you time, reduce the risk of errors, and increase efficiency. If you haven’t already, now is a great time to consider automating your payroll process.

Plan for Holidays and Absences

Make sure to factor in employee holidays and absences when planning your payroll for the new year. This will help you ensure that you have adequate coverage and that your payroll budget is accurate.

In conclusion…

Planning ahead can help you avoid potential pitfalls and ensure that your business runs smoothly. Take the time to review your payroll system, check your employee information, plan for pay increases and new taxes, consider automation, and plan for holidays and absences. By doing so, you will be well on your way to a successful new payroll year.

As always, if you would like to speak to us about payroll and how we can help please call us on 01243 782 423. Alternatively, you can email us from our contact page, and we’ll get in touch!

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