Running payroll is one of the most important tasks for any business. After all, your employees rely on you to get paid correctly and on time! But if you’re new to payroll, it can feel like a minefield of numbers, forms, and deadlines. Even for seasoned business owners, staying compliant and accurate isn’t always straightforward.
At Kingston Burrowes, we support many small businesses and startups in navigating payroll successfully. In this post, we’ll cover the five biggest payroll challenges—and how you can overcome them with ease.
What Is Payroll?
Let’s start with the basics. Payroll is the process of paying your employees. It covers calculating salaries, deducting taxes and National Insurance, submitting information to HMRC, and ensuring payments are made on time. It also involves keeping accurate records and staying compliant with legal requirements like GDPR when handling personal data.
Done right, payroll helps build trust with your team and ensures you stay compliant. Done wrong… it can lead to fines, penalties, and unhappy employees.
1. Ensuring Accurate Tax Deductions
The Challenge: Calculating taxes, National Insurance contributions, and pensions correctly is often where businesses trip up. Even small mistakes can lead to HMRC penalties or incorrect pay.
The Solution:
- Use payroll software with built-in tax calculators.
- Stay up to date with the latest HMRC guidelines.
- Set up automated reminders for tax submission deadlines.
If things get complicated (for example, handling maternity pay, student loans, or different tax codes), a payroll specialist can help you stay on track.
2. Paying Employees on Time
The Challenge: Missing a pay run can damage employee trust and morale. Many small businesses rely on manual processes, which increases the risk of delays.
The Solution:
- Set recurring reminders for payroll processing and payment deadlines
- Automate payments where possible.
- Use a payroll calendar to stay organised.
When your team knows they’ll be paid on time, it builds confidence and keeps everyone happy.
3. Understanding Payroll Software
The Challenge: Many new payroll users find payroll software confusing. Choosing the wrong system—or not using it to its full potential—can result in errors or inefficiencies.
The Solution:
- Start simple. Choose beginner-friendly payroll software that integrates with HMRC and your accounting system.
- Take advantage of tutorials and customer support.
If your business is growing, consider software that can scale with you as you add more employees.
At Kingston Burrowes, we can recommend payroll solutions tailored to your business needs.
4. Staying Compliant with Regulations
The Challenge:Payroll regulations change regularly—whether it’s minimum wage increases, pension contributions, or statutory leave entitlements. Falling behind can lead to costly mistakes.
The Solution:
- Subscribe to HMRC updates or work with a payroll professional who keeps on top of changes.
- Ensure GDPR compliance when handling employee information.
- Use up-to-date payroll templates to stay consistent and compliant.
5. Avoiding Payroll Errors
The Challenge: Even small payroll mistakes can cause big problems. Common payroll errors include:
- Incorrect working hours
- Wrong tax codes
- Missed pension contribution
- Late submissions to HMRC
The Solution:
- Double-check data entry before each pay run.
- Run payroll reports and reconciliations to spot issues early.
- Consider outsourcing payroll to reduce errors and free up your time.
Why Getting Payroll Right Matters
Accurate payroll isn’t just about avoiding fines—it’s about creating a reliable, trustworthy process that makes employees feel valued. It’s also essential for your reputation as an employer.
With the right systems in place, payroll doesn’t have to be stressful. In fact, it can be a seamless part of running your business!
Need Help With Payroll?
At Kingston Burrowes, we take the pressure off your shoulders with efficient, compliant, and stress-free payroll solutions—tailored for small businesses like yours.
- Pay your team on time
- Stay compliant with HMRC
- Avoid costly mistakes
Ready to simplify your payroll?
Contact us today and get expert support that saves you time and money. Don’t wait until there’s a problem. Let’s get your payroll sorted—now.
