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- Fellow PM.Dip
- Practice Licence
- 10 posts
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Hi everyone,
I recently passed my payroll exam. I'm meeting with a potential client tomorrow who is looking for a bookkeeper but might also be interested in payroll services too. Although I'm happy with what to charge for bookkeeping I have absolutely no idea where to start with charging for payroll. Any ideas/suggestions based on your experience will be very much appreciated!
Thanks a lot,
Fiona
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Hi Fiona,
If I offer payroll as a stand alone service then I charge £7 for the first employee and £4 for each subsequent employee. If I already offer bookkeeping or other accounting services then it's £5 for the first and £3 for each thereafter.
This is per payslip regardless of the frequency.
Kris
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- Member PM.Dip
- Practice Licence
- 746 posts
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very well done Fiona
luv lainy xx
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- Fellow PM.Dip
- Practice Licence
- 10 posts
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Thanks a lot for the info. It was great to have an idea of what to charge for payroll. The meeting with the potential client went really well yesterday and I think he's keen to take me on as his bookkeeper and for me to do his payroll. Fingers crossed!
Thanks again,
Fiona.
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kjmccullochsaid:
“Hi Fiona,
If I offer payroll as a stand alone service then I charge £7 for the first employee and £4 for each subsequent employee. If I already offer bookkeeping or other accounting services then it's £5 for the first and £3 for each thereafter.
This is per payslip regardless of the frequency.
Kris ”
How long does it take to do a payslip?
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Hi Mary,
I have just completed a monthly payroll this evening for a client:
5 employees all with basic hours, overtime & commission.
Time spent producing payroll payment report & P32 PAYE and exporting to pdf and emailing to client, printing payslips and putting in envelope for mailing out and raising my invoice then backup of software: 7 minutes.
Marilyn
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- Member PM.Dip
- Practice Licence
- 746 posts
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Wow Marilyn thats brill, probably a silly question, but Im sure the exam is very different from practice, do you just do the p/work side or is the customers bank account all linked up to it, if you work from home? Ive got the payroll as part of my quickbooks proadviser but havnt tried it yet. Just wondered exactly in real life how it works. do you have 2 link up your own system to HMRC and Bacs if they pay by bacs. Ptobably daft questions and I only passed payroll yesterday, so probably should look into it first, but just wondered what the norm was? Im not quite sure how to market payroll on my website. Thanks in advise. Well done Marilyn
very best wishes
Lainy xxx
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The time it takes me depends on whether the payroll figures change or not. Many of my clients pay a standard salary with no overtime or extra payments. This being the case the whole payroll can be run in under 1 minute from logging in.
The system I use automatically sends the employees their payslip by email and the employer the payment breakdowns and various other reports. As it's cloud based I don't really need to worry about backups. The longest part of the process is sending the RTI to HMRC.
If the payments do change it can take an extra 30 seconds per employee to make the changes.
All in all, if you could do payroll for an hour solid, you'd make a fortune. To bad not many of us have enough clients for that.
Kris
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- Member PM.Dip
- Practice Licence
- 746 posts
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Hi Kris
Hope you are okay. Which system do you use? Are most payroll systems cloud based? Thanks for everything, bery best wishes
Lainy xxx
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It's a package called MyPAYE. It's the only standalone payroll package I've seen which is completely cloud based.
It does cost per employee/month but thats even if you run the payroll weekly.
Kris
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- Member PM.Dip
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- 746 posts
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Thanks Kris thats great. Ive just had a look on the website and it looks really good. I think that I have payroll included in with my Quickbooks proadviser thought, so must look at that and see what thats like to use too. I notice that My PAYE links with Kashflow and Ive got the trial for that. So many decisions. Its all a bit confusing, as to how it all pieces 2gether.
thanks for all your help,
Very best wishes
Lainy xxx
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- Member PM.Dip
- Practice Licence
- 746 posts
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Hi Kris
Ive just had a look at my quickbooks payroll and it mentions that it must be used with the accounting package. Can I not use that as a stand alone? I do think that My PAYE sounds good.
Thanks for everything,
Very best wishes
Lainy xxx
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Hi Lainy,
In response to your query - I don't pay any of my clients employees by BACS as they prefer to do the payments as some pay by cash and others just do the payments through their online banking.
It is not something I would want to do anyway for security reasons.
I forgot to mention that the RTI submission was included in the 7 minutes.
Kris, I don't know why you say the longest part of your payroll is doing the RTI submission - I just press submit RTI FPS on my software and it is done within seconds and my submission receipt from HMRC arrives by email about 1 minute later.
My payroll is stand alone and that is my preference as the company are very good. There is an annual fee but compared to some software it is very reasonable and it includes support and unlimited companies/employees.
But each to their own choice and if it works for you then ok.
Marilyn
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- Member PM.Dip
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Thanks Marilyn
What system do you use? I was thinking about the security side if you do the payments as well. Does it do all the staff holidays etc as well. Im trying to work out whats best. Thanks everyone.
Very best wishes
Lainy xxx
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Hi Lainy,
I use Mamut Payroll (used to be MYOB - Mind your own business!). There are different levels of program - up to 50 employees multi-company/up to 100 employees multi-company or unlimited employees mult-company. I started off with the 50 when I began doing payroll for clients and just increased it when I got busier.
It does everything, records holidays, sickness, pensions, everything you would expect from Payroll software.
I like it because included in the price they will download any updates or when the new tax year starts they will download the new program if you allow them access to your PC. Saves me the bother cos then I know it is done right! You just phone their support line and they do it right away and phone you back when they are finished which lets you get on with something else (like cup of tea or whatever!)
I have used them for 8 years now and when I bought new PC last year they transferred all the previous programs and data onto new PC for me at no extra charge. Each tax year is like a separate program which I find is great. Although I like Sage payroll which I use at client's premises they are expensive and even more so for multi-company. I have never tried any other software simply because I am happy with Mamut.
Marilyn
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- Member PM.Dip
- Practice Licence
- 746 posts
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Thanks Marilyn
Thats lovley. Thanks to both you and Kris for all your help.
Very best wishes
Lainy xxx
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MM Bookkeepingsaid:
“Kris, I don't know why you say the longest part of your payroll is doing the RTI submission - I just press submit RTI FPS on my software and it is done within seconds and my submission receipt from HMRC arrives by email about 1 minute later.”
Because after I click the button to post the data it takes about 30 seconds to poll and send. This is by far the longest wait.
Kris
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Hi Kris,
Oops! Sorry I thought you were meaning it took a while compared to the rest of the payroll and I couldn't understand why that would be the case.
Marilyn
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- Member PM.Dip
- Practice Licence
- 51 posts
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How I wish I had payroll clients that easy!! I charge mine the same hourly rate, but I do the whole lot!! Adding up timesheets, running payroll, filing with HMRC, holiday calculations, counting the cash and handing it out! It is time consuming and they are all weekly's. The majority of my clients are in the tourist industry so there is rarely a week when I'm not adding new staff or issuing P45's. I would love some nice monthly salaries to pay, but somehow I can't see that happening.
Lol
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- Member PM.Dip
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- 746 posts
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Hi everyone,
Probably a very silly newie question, but do you have to register as an HMRC agent in order to be able to do payroll for several companies from home? With RTI do you have to be an agent to be able to do this?, how does the software link with your own?
thanks everyone
very best wishes
Lainy xxx
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Hi Lainy,
Yes you have to register with HMRC for PAYE Services - you can do this online (only Self Assessment Tax Returns you have to write to HMRC).
Once you receive your activation code from HMRC you log back in and enter the code and that is you registered as an agent.
To be able to do the payroll for clients you have to register through your PAYE login for and enter all clients details (this is called File by Internet). The client will then be sent an activation code and if they still want you to proceed doing payroll for them they give you the code which you enter via your login with HMRC for PAYE. They normally receive the code within 7 days.
I also have clients sign a 64-8 form and send that off to HMRC - this allows you to speak with HMRC on client's behalf if there are any payroll issues. This can take anything up to 28 days for you to be in HMRC system.
When it comes to filing RTI there will be a section within payroll software where you enter your HMRC PAYE login and password and this then allows you to submit online but you must be authorised by client first to do this.
Trust this answers your query and you are able to understand my rambling!
Marilyn
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- Member PM.Dip
- Practice Licence
- 746 posts
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Thanks ever so much Marilyn. There is so much that the exam doesnt seem 2 tell you.
Very best wishes
Lainy xxxx
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- Member PM.Dip
- Practice Licence
- 746 posts
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Thanks ever so much Marilyn. There is so much that the exam doesnt seem 2 tell you.
Very best wishes
Lainy xxxx
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