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Payroll

Term

A list of employees and salary details for a company. Must be done as a limited company with employees, not as a sole trader. Being on payroll usually means you’re an employee, applies to freelancers and independent contractors.

Payslips will show your gross and net incomes, certain payments like income tax, national insurance, student loan repayments, pension contributions and save as you earn contributions will be listed as deductions.

Firms have to set up payroll in order to calculate employee pay/tax contributions, paying employees, reporting payments to HMRC and informing SLC of loan repayment.

Payroll can be done by hand, using payroll software or by an accountant. The deductions have to be sent by:

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