Payroll made easy for single director clients

31st Aug 2021
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brightpay
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Offering a payroll service to single director companies is a good way to add extra value for these busy self-employed clients. However, all the usual payroll tasks still have to be covered, even when there’s only a single director/employee to pay when you run each payroll.

So, how can you streamline the process for these single director clients? And how does BrightPay offer the ideal payroll platform to do this?

Managing a single director payroll run

When self-employed people set themselves up as a limited company, this can be an excellent way to protect their liability as an owner and to make their business earnings more tax efficient. But if directors choose to pay themselves a regular salary then they will still have the extra admin task of managing a payroll run – and this is something that’s often then outsourced.

Your practice can offer an efficient, time-saving payroll service. But it’s worth remembering that there will still be multiple tasks to complete, even with just one director payroll to process.

Tasks can include:

  • Processing the director’s salary – directors can obviously choose to pay themselves via dividends taken out of the company profits. But they also have the option of paying themselves a salary through the company payroll. If the client goes the salaried route, you’ll need to keep all the necessary records, process the payroll data and carry out all the same tasks as you would for a multi-employee payroll.

  • Calculating PAYE and NI contributions – if a director opts to be paid a nominal salary through their limited company, they will need to be registered for pay-as-you-earn (PAYE) income tax, the same as any other employee. Once registered, you’ll be responsible for collecting the relevant PAYE deductions and paying them to HMRC.

  • Deducting pension contributions – it’s not mandatory for a director to be enrolled in a workplace pension scheme, but director clients may choose to opt in to a company scheme. As such, part of the payroll run may include calculating the contributions to this workplace pension scheme and making the necessary deductions.

  • Accounting for directors’ loans – if the director chooses to take out a directors’ loan from the business, this will need to be recorded, processed and accounted for in the client’s accounts. Any repayments of this loan will also need to be recorded. 

  • Recording and claiming expenses – the director may also be claiming expenses for things like travel, fuel costs, medical insurance or business training. These expenses must be processed via the payroll and the relevant reimbursements then made to the director in their regular salary. 

5 key benefits of BrightPay for single director payrolls

Managing all these payroll and accounting tasks for single director clients can soon start to add up. But with the right payroll software behind you, you can begin to streamline the processes and make the payroll tasks easier and less labour intensive.

Thanks to BrightPay’s automation features and flexibility, you can quickly reduce the single director workload.

For example, BrightPay offers:

  1. Batch processing your single company payrolls – manually processing all your single director payrolls at month end can easily create a log-jam. But with BrightPay you have the ability to batch-process your payrolls, all in one go. Finalise payslips and send RTI submissions for all single director clients at the same time, saving yourself hours of additional payroll administration time at month-end.

  2. Direct payment straight to the client – BrightPay’s integration with payment platform, Modulr, makes it incredibly easy to pay salaries to your director clients. Bank files and all the manual-entry work that would usually be needed can be forgotten about. Employees can be paid 7 days a week, 24 hours a day, directly through BrightPay, once you have set up a Modulr account. Fast, simple and straightforward. 

  3. Cloud platform for clients – through BrightPay’s optional cloud add-on, BrightPay Connect, your client has access to their own online dashboard where they can view amounts due to HMRC, run payroll reports and view any past or current payslips. Payslips and reports are automatically distributed to the client, so you don’t even need to open the payroll file to process the payroll. And with these cloud communication tools, your director clients can be far more involved in the payroll process, without having to be lumbered with the actual admin work. 

  4. Client payroll entry – one of the advantages of processing payroll for a single director client is that their pay does not usually vary each pay period. However, if you have a single director client whose pay does sometimes change, using BrightPay Connect, you have the option of sending the client a payroll entry request to the client’s online dashboard. The request can be sent to multiple clients at once and gives your client the opportunity to inform you of any changes to the pay information for that pay period.

  5. Integration of payroll files with accounting software – sending payroll data between your payroll software and the client’s accounting software can be a fiddly and time-consuming task, even for one employee. BrightPay’s integrations with a number of accounting systems make updating payroll journals a breeze, seamlessly sending the payroll data to the client's accounting platform.

Up your productivity and scale your client volumes

By removing the time-intensive payroll tasks, BrightPay makes it easier to run multiple single director payrolls and automate many of the key processes.

With this increased productivity, you can increase your capacity, take on more single director clients and boost your overall client revenues – all by switching to a more powerful, flexible and streamlined payroll platform. This is why BrightPay is the modern payroll solution of choice.

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