Payroll Overview
As an employer operating PAYE as part of your payroll, you need to complete certain tasks during each tax month. Tax months run from the 6th of one month to the 5th of the next.
You must send an Employer Payment Summary (EPS) to HM Revenue and Customs (HMRC) if you’ve not paid any employees in a tax month.
On or before your employees’ payday
Every time you pay your employees, use your payroll software to:
- Record their pay - include their salary or wages and any other pay.
- Calculate deductions from their pay, like tax and National Insurance.
- Calculate the employer’s National Insurance contribution that you’ll need to pay on their earnings above £242 a week.
- Produce payslips for each employee (you can use different software if yours does not have this feature).
- Report their pay and deductions to HMRC in a Full Payment Submission (FPS).