PAYROLL MANAGEMENT

Payroll Management System

Payroll Management System

Introduction

Payroll management deals with financial transaction of employees such as salaries, bonuses, wages and deductions. For small businesses, payroll management system is not necessary since there are small numbers of employee working and there are no such big transactions of each employee (Lambert 2010, p. 149). Nevertheless, Payroll management system reduces workload for management and assists company in number of ways. The focus of this paper would be on small business payroll management system that will include correct use of current tax & National Insurance rules and tracking of individual and total payments to staff, HM revenue and Customs.

Discussion

A small business usually comprises of 25 to 30 full time employees. We are considering a company that is involved in Bakery Business such as cakes, muffins, pizza, pastries and all baking item. There are 14 employees currently working for this business. Payroll of this business is based on weekly and we have applied tax rate which is mentioned below on weekly basis (Braggm, 2012, p. 49). Furthermore, since we have investigated on the regulation of employees in term of Tax and national insurance and other deduction that are applied on the bases on yearly salary amount.

Below is the tax schedule for UK

Source: HM Revenue and Customs

National Insurance contributions - rates and allowances

Source: HM Revenue and Customs

As I was working for small bakery business, their payroll system was as followed. Company was paying overtime as well so that limited employees can do partial more work.

Employee General information

Employee Name

Date of Joining

Employee Status

Designation

Sam

20-Jul-10

Full time

Senior Baker

John

15-Aug-10

Full time

Senior Baker

Moun

18-Oct-11

Full time

Baker

Sus

18-Oct-11

Full time

Baker

Marry

1-Jan-12

Full time

Baker

James

1-Jan-12

Full time

Baker

Natail

1-Jan-12

Full time

Baker

Mue

2-Jan-12

Full time

Assistance to bakers

Tue

3-Jan-12

Full time

Assistance to bakers

Rath

1-Jan-08

Full time

General Manager

Cardona

17-Jan-10

Full time

Customer Service Manager

Batista

21-June-08

Full time

Distribution Operations Manager

Suazo

1-Jan-09

Full time

Quality Assurance Manager

Roque

1-Jan-08

Full time

Information Technology Manager

1

Sam

48

0

0

15

25

£ 1,575.00

£13.13

£20.00

£1,541.88

2

John

48

0

0

25

20

£ 1,460.00

£12.17

£20.00

£1,427.83

3

Moun

48

0

0

5

10

£ 530.00

£4.42

£20.00

£505.58

4

Sus

48

0

0

4

10

£ 520.00

£4.33

£20.00

£495.67

5

Marry

48

0

0

3

10

£ 510.00

£4.25

£20.00

£485.75

6

James

48

0

0

20

10

£ 680.00

£5.67

£20.00

£654.33

7

Natail

48

0

0

14

10

£ 620.00

£5.17

£20.00

£594.83

8

Mue

48

0

0

0

0

£ 240.00

£2.00

£20.00

£218.00

9

Tue

48

0

0

17

5

£ 325.00

£2.71

£20.00

£302.29

10

Rath

48

0

0

25

250

£ 18,250.00

£608.33

£20.00

£17,621.67

11

Cardona

48

0

0

14

175

£ 10,850.00

£180.83

£20.00

£10,649.17

12

Batista

48

0

0

33

175

£ 14,175.00

£236.25

£20.00

£13,918.75

13

Suazo

48

0

0

18

175

£ 11,550.00

£192.50

£20.00

£11,337.50

14

Roque

48

0

0

20

165

£ ...