Running the employee payroll – UK

The employee payroll process is one you’ll want to get right every time. Use our free payroll template (UK) to ensure the payroll run is performed for your employees every week/month. Check the .Gov website for more information:

This process features on our list of 25 processes every business needs.

1Check all new employees have been set up in the payroll software

Importance: Essential

Check the ‘add employee to payroll’ tasks have been completed

2Initiate the payroll run for the period you want to pay your employees for

Importance: Essential

This is normally found under the payroll tab in your accounting software

3Check the gross pay calculation for each employee is correct

Importance: Essential

Salary paid staff: take their annual salary and divide by the number of payroll runs in a year (12 if you are paying once a month)

Hourly paid staff: take their hourly rate and multiply by the number of hours to be paid

3.1Add any additions to the relevant employees payslip

Importance: Optional

Additions might include overtime

3.2Add any deductions to the relevant employees payslip

Importance: Optional

Deductions might include sickness absence or a season ticket loan

3.3Check the pension calculations on each employees payslip

Importance: Essential

Has the correct % been deducted from the employee?
Has the correct % been contributed by the employer?

4Once you are happy the amounts on the payslip are correct – confirm/complete the pay run

Importance: Essential

This is normally performed by a button within the payroll run you are working on in your accounting software

5Set up the employee payroll payment with the bank

Importance: Essential

Login to your internet banking software and add the net pay amount for each employee to the payment you are setting up

6Submit the Full payment submission (FPS) to HMRC

Importance: Essential

Your accounting software may do this automatically for you once you have completed the pay run

6.1Set up the PAYE payment to HMRC

Importance: Essential

The amount to pay is usually found the tax & filings area (sometimes with the payroll tab) of your accounting software

7Submit the pension contribution amount to the pension provider

Importance: Essential

The pension contributions are usually found in the reports tab of your accounting software

8Set up the pension contributions payment to be made to your pension provider

Importance: Essential

9Approve employee expenses

Due: 3 days after task is started

Importance: Essential

Add a link to your expenses approval area here!

9.1Set up the expenses payments to employees

Importance: Essential

10Email out the payslips to your employees

Importance: Essential

Most accounting software packages the function available for you to email your employees their payslips straight from the software package

Use this template on beSlick

Add to your Organisation or start a free trial today to use this template.