Point Accountancy in Loughton, Essex will assist you in running your monthly payroll using our professional system to run and print your payslips.
Running the payroll is essential for any company that has an employee, this is so the employee and employer knows the exact remuneration the employee will receive at the end of each month.
A monthly income tax bill is calculated and taken from any member of staff that is currently employed. The rates they pay are 20% tax for income between £11,500.00 - £45,000.00, 40% from £45,000.01 - £150,000.00 and 45% for over £150,000 with the personal tax allowance of £11,500.00 (from 06/04/2017) being reduced by £1 for every £2 earned over £100,000.00.
With payroll both the employer and the employees have to pay national insurance with the employee's being 12% currently and the employers being 13.8% although HMRC offer a national insurance allowance to all employers of £3,000 which means if an employer pay's £21,739.13 over the £8,112.00 minimum threshold for national insurance to their combined employment they would start to pay employers national insurance.
For example: employer A employ's three members of staff of which two are full time and one is part time they earn the below amounts before deductions per month: Employee 1 earns £17,000 per annum
Employee 2 earns £24,000 per annum
Employee 3 earns £9,000 per annum
This would mean that employee 1 would have to pay national insurance of 12 % on (£17,000 - personal allowance of £8,112) = £1,066.56
Employee 2 would have to pay national insurance of 12 % on (£24,000 - personal allowance of £8112) = £1,906.56
Employee 3 would have to pay national insurance of 12 % on (£9,000 - personal allowance of £8112) = £106.56
Meaning the employers total liability would be 13.8% on (£17,000 + £24,000 + £9,000 - (3 x £8,112)) = £3,541.63 less the £3,000 ni allowance the annual employers ni liability amount payable would be £541.63 which would be charged monthly along with the employee's after the NI allowance had been used up.