Where to start employing

Third Task: Choosing a Payroll System

Selecting the right Payroll System which you understand will make the clubs salary process easier. Your payroll system will be the software you use to process all things payroll.

If your club becomes an employer, the club will have to operate PAYE (Pay as You Earn) as an area of payroll.

PAYE is HMRC’s system for collecting Income Tax, National Insurance contributions and student loan repayments from workers.

You can operate PAYE by either

  • Paying a provider to do it for your club
  • Doing it yourself using payroll software

If you decide to use a payroll provider, the club will need to consider the support required.

The club will be responsible for keeping and collecting records of your employee’s details. The payroll provider will require these details to operate payroll on the club’s behalf. Some payroll providers offer more support than other, so select a provider which meets your needs. Some services which a provider may offer include:

  • Storing of the employee records
  • Providing payslips
  • Making payments to HMRC

Note, despite these tasks being carried out, as the employer, your club will be liable to ensure they are completed.

Should the club decide to run its own payroll, software will need to be downloaded to report to HMRC. The software will help you with tasks like:

  • Recording the workers details
  • Working out workers’ pay and deductions
  • Work out payroll information to provide HMRC
  • Working how much is needed to pay HMRC
  • Working out statutory payments

Click HERE to access several free Payroll Software options for your club.