DIY accounting and payroll software limited company formation UK

EMPLOYEE PAYROLL DETAILS SHEET

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

While the payroll consists of 3 files in all, no entries are required to 2 of these files being fully automated within the payroll software. The 2 automated files being the payslips file and the file containing the revenue returns. The payroll file which consists of the EMPLOYEE PAYROLL DETAILS and the PAYROLL DETAILS are the only files that require entries in this small business payroll software system.

Screenshot of payroll software employee details 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.

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 information entered determines the income tax code the payroll software will use for the employee and also determines 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.

Business Details:

Easy to enter, fill in the business name, address and revenue office. The business name and address is used by the payroll program system and automatically fills in the payslips 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 6/4/06 if the employee was with the business at the start of the 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.

For employees joining during the Paye year complete the new starters section direct from the P45 including 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 earnings and income tax to the year to date figures in the correct pay period.

Should an employee leave, enter the leaving date will automatically generates an excel copy of the P45 to be produced which 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.

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.

Income Tax:

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 543L as "543" in code number and "L" in suffix code. If an employees income tax code changes during the Paye year enter the amended income tax code on the next line with the date applied.