Payroll Methods in the US and UK: How We Operate, Software Used & Key Payroll Important Dates
- How Payroll Works in the UK
UK payroll operates under HMRC’s Real Time Information (RTI) system. This means every time employees are paid, details must be submitted to HMRC instantly — including pay, tax, and National Insurance contributions.
UK payroll also includes auto-enrolment for workplace pensions, PAYE deductions, and regular employer contributions.
Outsourcing Advantage:
GreatFigures handles all submissions on behalf of clients — from salary calculations to RTI and pension reporting — ensuring full HMRC compliance and zero missed deadlines.
Managing payroll efficiently across borders — especially in the US and the UK — requires precision, compliance, and technology that work together seamlessly.
For many businesses, maintaining an in-house payroll department is costly and time-consuming. That’s where outsourcing partners like GreatFigures come in — delivering accurate, compliant, and scalable payroll management using advanced payroll software and clear communication workflows.
- Software Commonly Used in the UK
To stay compliant and efficient, GreatFigures uses HMRC-recognised and cloud-integrated platforms such as: 
We select the software based on client size, industry, and integration needs.
All records are encrypted, cloud-stored, and securely accessible — ensuring data protection under GDPR.
- Key HMRC Payroll Dates for 2025/26
- How Payroll Works in the US
In the US, payroll involves federal, state, and local tax compliance. Employers must calculate and remit:
- Federal income tax
- FICA (Social Security and Medicare)
- State and local income taxes
Each jurisdiction has its own rules and schedules — making accuracy and automation essential.
Outsourcing Advantage:
GreatFigures handles multi-state payroll, federal filings (IRS), and year-end forms (W-2, 1099) using certified platforms and associated CPA’s In US and UK , ensuring compliance for small and mid-size US firms.
- Software Commonly Used in the US
- How GreatFigures Operates Payroll as an Outsourced Partner
Whether for a UK or US business, our payroll outsourcing workflow ensures precision, compliance, and transparency at every stage.
Step 1: Data Collection
We collect employee and payment data via secure, encrypted channels (cloud portal or shared workspace).
- Employee details, tax codes, and hours
- Pay changes, new hires, leavers, and benefits
Step 2: Payroll Processing
Using integrated payroll software, our accountants:
- Calculate gross-to-net pay
- Apply taxes, deductions, and benefits
- Handle statutory payments (maternity, sick pay, bonuses)
- Validate accuracy through internal double-checks
Step 3: Compliance Submissions
- UK: Submit FPS/EPS to HMRC
- US: File federal, state, and local payroll reports
- Manage pension contributions (UK) and 401(k) (US)
- Generate audit-ready reports for employers
Step 4: Payslips & Reporting
- Digital payslips sent to employees
- Comprehensive month-end payroll reports
- Pension upload files & payment instructions
Step 5: Payment Support
We prepare and validate:
- Net salary payment files
- Tax and contribution remittances
- Employer reports for reconciliation
Step 6: Year-End Filings
- UK: P60, P11D, re-enrolment review
- US: W-2, 1099, and Form 940
We handle complete year-end compliance with no missed deadlines.
Control accounts provide a summarized view of important financial data, which aids in the preparation of accurate financial statements and reports.
Example: The balance of the accounts receivable control account is reported on the balance sheet as part of current assets, providing a clear picture of the total amount owed by customers.
- Why Businesses Outsource Payroll to GreatFigures
- Error-Free Compliance:
We handle RTI, HMRC, and IRS submissions with precision.
2.Cost Efficiency
Outsourcing is 40–60% cheaper than in-house payroll teams.
3.Time Savings
No admin burden — your staff can focus on growth.
4.Technology-Driven Accuracy
loud software + human review ensures flawless processing.
5.End-to-End Visibility
Every transaction, deduction, and report is transparent.
6.Cross-Border Expertise
Seamless payroll management for businesses operating in both the US and UK.
Payroll processing is complex — but it doesn’t have to be complicated.
Whether managing US federal filings or UK RTI submissions, GreatFigures combines automation, compliance, and dedicated expertise to deliver payroll that’s accurate, on time, and worry-free.
From data entry to year-end reports, GreatFigures handles it all — so you can focus on running your business.
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