At the start of National Payroll Week1, new research2 has found that 45% of SMB employees across the UK have paid too much tax as a result of being on the wrong tax code or through errors with deductions. Seven per cent of employees claim to be affected in the past year alone.
The research by Intuit QuickBooks of over 2,000 people in the UK revealed confusion when it comes to understanding the humble payslip:
· 77% of SMB employees incorrectly believe it’s not their responsibility to check they’re paying the correct amount of tax
· 66% of SMB employees don’t realise having multiple jobs affects their tax
· 19% of SMB employees don’t even check their payslip
Nationally, almost a quarter (23%) of all employees have four or more regular deductions from their gross pay, such as travel loans, childcare vouchers, student loans, gym memberships and medical insurance. With many of these impacting the tax code a worker should be on at any point in the year, it is not surprising that both employees and business owners can struggle to get this right every time.
To help support small businesses and to combat confusion, Intuit QuickBooks has launched a new Advanced Payroll solution which gives employers the tools to automatically account for deductions like pensions when running payroll. It also provides an online employee portal, simplifying the process for employees looking to check and understand their payslip.
Shaun Shirazian, Head of Product at Intuit QuickBooks UK said: “Many of us can feel a bit lost when checking our payslips and feel unsure about the multiple factors that contribute to our adjusted pay. Taxes are complex and the research shows that significant overpaying of tax is caused by payroll issues, such as being on the wrong tax code, or errors with deductions such as childcare vouchers.”
The research further found that overpaying tax due to payroll issues was just as prevalent across employees of companies of all sizes, but employees of smaller businesses are far less likely to even check their payslip for mistakes.
Shirazian continues; “Small businesses in particular have so many different areas of a business to manage, often with limited support in terms of man-power. They want to do all they can to get pay right for their employees but – as this research shows – there are sometimes a multitude of challenges in ensuring this is watertight. . We want to be able to give these business owners the tools and support they need to help their employees get paid properly and accurately.
“Less than a third of employees (31%) think it’s their responsibility to make sure they’re paying the right tax. And with nearly one in five (19%) calling out small business owners as responsible, we want to back SMBs and help them educate their employees about payslip information and whose responsibility it is to get it right.
“We’re constantly looking at ways we can help support businesses through digital innovation. That’s why we’ve introduced QuickBooks Advanced Payroll as solution to help overcome more complicated payroll circumstances. With automatic pay calculations and real-time insights and updates, this product will enable more efficient and simple processes for employers and employees, crucially saving time and helping to ensure peace of mind for everyone when it comes to finances.”
To celebrate the launch, QuickBooks is offering an introductory offer for its new Advanced Payroll subscribers. Plus, during National Payroll Week (2-6 September), QuickBooks will also be hosting a series of free training webinars and social community clinics to help those looking to better understand payroll.
Making payroll simple
The Intuit QuickBooks Advanced Payroll product offers a modern payroll platform that enables small business owners to manage payroll information with ease. Information and data can be passed from the employee and through payroll seamlessly, with employers able to securely access employee payroll information anytime, anywhere.
Features of the product enable business owners to store and manage key tools, including timesheets, leave management and pension auto-enrolment. It ensures complete visibility, allowing businesses to work smarter and save time. The product automatically calculates leave and deductions (including pensions).
The QuickBooks Advanced Payroll product also offers significant benefits to employees, who are always able to manage and view their own information via an app, including accessing their payslips, submitting leave requests and logging expense claims.
For more information and full details about the QuickBooks Advanced Payroll and the free training and webinars, please visit www.quickbooks.co.uk/payroll , or visit https://www.gov.uk/tax-codes for more information about tax codes.