Payroll Basics for Employers
Payroll touches employees, HMRC, pensions and liquidity — accuracy matters every pay run.
Introduction
This guide summarises PAYE, RTI, payslips, pensions and frequent missteps.
What is PAYE?
PAYE is HMRC’s mechanism to collect Income Tax and National Insurance via wages. Employers report pay and deductions through payroll software, generally on or before payday (GOV.UK).
What should payroll include?
- gross pay
- tax deductions
- employee National Insurance
- employer National Insurance
- pension deductions
- statutory pay
- net pay
- payslips
- RTI submissions
What are RTI submissions?
Real Time Information submissions tell HMRC what you paid each employee and what you deducted, creating the live record used for tax codes and benefits.
Workplace pensions
Employers assess eligibility, enrol qualifying staff, deduct contributions and send data to pension providers — governance is ongoing, not one-off.
Common payroll mistakes
Stale tax codes, late FPS/EPS filings, missed pension duties, incorrect leaver handling, wrong NI categories and thin supporting files.
How DepoTax can help
DepoTax covers PAYE registration, weekly and monthly payroll, director payroll, payslips, RTI submissions and pension coordination.
Frequently asked questionsFAQ
What is RTI?
Real Time Information — employers report pay and deductions to HMRC on or before payday through payroll software.
What must payslips show?
Key items include gross pay, deductions, net pay and tax/NI details — software usually formats compliant payslips.
Do small employers still need auto-enrolment?
Duties depend on workforce age and earnings — assess each pay period and maintain records.
Can DepoTax run payroll?
Yes — registration, weekly/monthly runs, directors and pension administration.
Related DepoTax services
Contact DepoTax for tailored advice.