Processing payroll for employees in a timely manner and accurately is essential to running a business, so it can calculate the salary payroll accounting of salaries and wages, bonuses and commissions, determine the correct cutting individual tax and file tax reports and payments to HMRC.
Payroll CIS relates specifically to the construction industry, it outlines the requirements and regulates the sub-contractor is paid.
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A construction company that wants to take a sub-contractor must follow strict guidelines:
- You must first register your company with HMRC as Contractor CIS.
- You should check the sub-contractor is in fact a sub-contractor and not on by HMRC as an employee, this check should be done with HMRC.
- You need to verify with HMRC how much tax you need to deduct from sub-contractors, 20% if the subcontractor is registered, 30% otherwise.
- Another consideration is the weather needs to make sub-contracting work you do in fact fall within the CIS.
Taxes are deducted from the sub-contractor is paid monthly and crossed over to HMRC tax CIS also needs to be submitted to HMRC on a monthly basis, which indicates the amount you pay for sub-contractors and how much tax withheld.
Launching Real Time Information is the new way to report information to HMRC about PAYE, in the past employers must be reported each year, but now employers will have to report every time they pay employees, whether it is the employee directory, anyone.