DIY accounting software, tax accounting, payroll software, limited company formation UK

Employee Tax and Payroll Sheet To Enter Employees Pay, Employees Tax and Payroll No

Business Payroll Small Employers Solution for up to 5, 10 and 20 Employees

While the employee payroll consists of 3 files in all, no entries are required to 2 of these files being fully automated within the employee payroll software. The 2 automated files being the payslips file and the file containing the revenue returns. The main payroll file consists of the Employee Tax and Payroll details and the Payroll sheets where the gross wages and salaries are entered in this small business payroll software system to produce the payroll and paye administration.

Screenshot of small business payroll software employee tax and payroll sheet

Employee payroll details, shown below, is located in the payroll file, a single excel spreadsheet, that maintains both the small business payroll system details and employee payroll details, requirements of any Paye payroll program software system. Keeping the employee payroll details on this excel worksheet provides a permanent employee payroll record as required by the Inland revenue, complete with income tax and national insurance records. In addition the payslips for the whole financial year are retained as issued in the payslips templates

The Payroll 5 version for up to 5 employees has 5 employee boxes, Payroll 10 has 10 employee boxes and Payroll 20, 20 boxes so all the employee payroll details are kept on the same single spreadsheet.

It is important to take care to ensure accuracy when entering or changing the employee payroll details as the tax and payroll information entered determines the income tax code the payroll software will use to calculate the employee tax and determine the appropriate national insurance calculation to be applied. Both income tax and national insurance are calculated automatically when the gross pay is entered in the payroll file.

Small Business Payroll Details:

In the business payroll small section enter the business name, address and revenue tax office. The business name and address is used by the payroll program system and automatically fills in the salary slips for each employee.

Employee Details:

Easy to enter, only the white areas of this form require completion, shaded areas are automated, employee bank details are optional.

To complete this form enter the name and address of existing employee with the starting date as 6/4/08 if the employee was with the business at the start of the 2008 Paye year or the actual date started if joining later. The date entered determines the automatic entry of that employees name on the payroll and therefore only has to be entered once each year.

Enter M or F to denote male or female.

Enter M or W to denote monthly or weekly paid which will determine whether that employees name appears on the weekly or monthly payroll list. The payroll no is preset giving each employee a payroll no when the employees tax and payroll details are entered.

For employees joining during the Paye year complete the new starters section direct from the P45 form entering the employees pay and the employees tax from the previous employment plus the week or month number. The week or month number is important as the payroll software system uses these payroll periods to add the previous employees tax and payroll earnings to the year to date figures in the correct pay period.

Should an employee leave, enter the leaving date which is all that is required to automatically generate an excel copy of the P45 which will show the employees tax and employees pay to date. The P45 form is located in the revenue payroll file, providing the simplest payroll software solution for leavers.

This section of the employee payroll details is used to record the income tax and national insurance details of each employee.

National Insurance:

Enter the national insurance number and the date of birth for each employee. The national insurance number then automatically appears on the employee payslip template after gross wages have been entered on the payroll template

No other entries are required unless the employee's employment with the business is a second employment in which case change the "N" to "Y" or if the employee is married/widow and subject to reduced rate national insurance also change the "N" to "Y". Employers must obtain the appropriate Inland Revenue certificate when applying this reduced rate national insurance contribution.

Employees Tax Code:

UK tax codes are determined by HMRC and used by employers to calculate tax to be deducted from employee income. Inland Revenue tax codes contain numbers or letters and usually both. When multiplied by 10 the number indicates the amount of tax free personal allowance the person is entitled to and the letter indicates the conditions which might be applicable to the UK tax code to accurately calculate the employees tax deduction.

If the employee is on a week 1 or month 1 basis enter W1 or M1 with the date this became effective. This simple entry is then used by the payroll program software to calculate the income tax on a week 1 or month 1 basis.

For each employee enter the income tax code, separating the income tax number from the suffix letter and the date applied. Example, enter tax code 543L as "543" in code number and "L" in suffix code. If an employees income tax code changes during the Paye year enter the new tax code on the next line with the date applied.

The employees tax and payroll section of the details sheet is then complete that will generate the employee name and payroll no to automatically appear on the payroll spreadsheet. Only the gross pay needs to be entered against the employee name to calculate the employee tax and payroll deductions The salary slips template will automatically update when gross wages for an employee are entered

Key Benefits

• Employers operating a Paye system are required to keep all the above records for employees and by using this business payroll software system these details are a safer way to keep and store the information.
• All the above payroll information only has to be entered once a year for each employee and then is used throughout the Paye year to correctly calculate the income tax and national insurance, complete the payslips and complete the inland revenue forms.
• To back up this information it is recommended that all payroll software files are emailed to yourself as attached files after each pay period. That way should any unforeseen events occur to the computer on which the information is held you can always retrieve a copy from your mail server.

DIY Accounting  "Employee tax and payroll sheet for employees pay, employees pay, employees tax and payroll no to set up business payroll program for small employers"

[ Accounting Software ] [ Sole Trader ] [ Self Employed ] [ Company Accounts ] [ Taxi Driver Accounts ] [ Payroll Software ] 

[ Company Formation ] [ Bookkeeping Register ] [ Questions & Answers ] [ Affiliate Program ] [ Articles ] [ About us ]

Copyright © 2006 2009 DIY Accounting Limited
Last modified: 03/17/09