Taking on employees brings record-keeping responsibilities. Payroll records support wages, PAYE, National Insurance, pensions, holidays and the bookkeeping entries in the accounts.
Employee and pay details
Employers need records showing who was paid, what they were paid for, and how pay was calculated.
- Employee details and start dates
- Gross pay, deductions and net pay
- Hours, salary changes or overtime where relevant
PAYE and National Insurance
Payroll reports should support submissions to HMRC and payments made from the business bank account.
- RTI submission reports
- PAYE and National Insurance summaries
- HMRC payment references
Pension records
Auto-enrolment creates extra records for eligible workers, contributions and opt-outs.
- Pension contribution reports
- Employer and employee contributions
- Opt-out or postponement records
Holiday, sick pay and leave
Leave records help explain pay changes and support employer obligations.
- Holiday taken and remaining
- Statutory sick pay records
- Maternity, paternity or other statutory leave where relevant
Bookkeeping link
Payroll needs to be reflected in the accounts. Wage costs, employer NI, pensions and net pay should all be coded properly.
- Post payroll journals
- Match net wage payments
- Check HMRC and pension payments
Key takeaway
Payroll records are not separate from bookkeeping. They need to agree with the accounts and the bank.
