Payroll Setup

[AIS-Samuel]

Hi,

So the company just went limited and I am now going to pay myself PAYE. I am setting up payroll in quickbooks.

Just a simple question really, when do you run your payroll from? start of the month to the end? what date to date have you found most effective?

When you pay period ends is that the day you send payment or do you give your self a different pay date?

For example I am thinking of running payroll from 26th to 26th and making payment date the 28th.

Thanks
Sam

 

[Mike Lewis]

Hi Sam,

I gather from what you said that you are a one-employee business (like me).

If so, you'll probably find it easiest to base your pay periods on a calendar month. That way, each pay period will correspond to one PAYE month (one month's worth of entries on the P11, if you like to think of it that way).

It won't make any difference which actual day within the month you run the payroll or make the payment. Unless you have a good reason to do otherwise, just pay yourself around the the last week of the month, on whatever day you find convenient. It won't make a scrap of difference to HMRC.

Of course, if you employ staff, that's another matter. In that case, the pay day will be a matter of contract between you and the staff.

One other point. If you are indeed the only employee, I'd think that Quickbooks would be overkill for your payroll. It only takes a couple of minutes to do it manually on the P11 form, or to use the free software provided by HMRC.

Mike

 

[Gouldie0]

Hi Sam,

How are you taking money from your business? Are you using the PAYE and Dividend method as this can be far more beneficial than just taking a salary. If you need any help just give me a shout.

Any PAYE or NI contributions should be paid to HMRC by the 19th of the following month and it doesn't matter when you're pay day or period is. If your contributions are less than £1,500 (which I assume they will be) though you can pay your contributions on a quarterly basis.

I have to agree with Mike in that I think using Quickbooks for payroll is overkill, are you using it to make the accounting process easier? I would definitely look at the HMRC free CD-Rom, although not an all singing and dancing piece of software but effective.

Kind Regards

Neil