What Payroll Information Must Be Retained?

Are you in charge of payroll within your organisation? If you are, there are many considerations you will need to make on a daily basis - and among the most important is which information you need to retain when it comes to payroll. In this article, we look at some of the data you need to be in the habit of retaining when doing payroll.

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What You Pay & Deductions

As a starting point, you must keep records of how much you pay each employee along with all deductions made to their pay. These can include National Insurance (NI) and tax deductions, which you can work out using an employee's tax code and NI category letter. Other deductions can include pension contributions, loan repayments and child maintenance payments.

Reports & Payments To HM Revenue & Customs (HMRC)

Reports can include the Full Payment Submissions which you make to HMRC, which should be sure to cover every employee you pay. Your payments to HMRC will include NI, tax, and other deductions which you have included on the Full Payment Submission for the previous tax month.

Employee Absences For Leave & Sickness

You should include all of your payroll information, which relates to absence of employees. This could be for various types of paid leave, as well as time off work for sickness.

Tax Code Notices

You must record all your tax code notices, also known as P6 forms. You can receive these when tax codes change during the year, such as when an employee's Personal Allowance (tax-free income) goes up or down. You will usually be sent these notices in an email alert.

Taxable Benefits Or Expenses

Your records must demonstrate the accurate detailing of benefits and expenses, including; the date and details, information pertaining to end-of-year forms, any employee contributions to benefits or expenses, and related correspondence with HMRC.

Payroll Giving Scheme Documents

You must keep a record of any Payroll Giving Scheme documents, including any employee authorisation forms and agency contracts.

Managing your organisation's payroll can be a complex and timely task. Could your company's resources be better channelled in other ways? That's where eSlip Payroll Services come in, not only offering you budget-friendly outsourced payroll services, but freeing up you and your employees' time - this allows you to concentrate on what you do best.

Let's talk - call us today on 01279 851000 to talk about our complete payroll processing solutions.

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