Dealing with employment regulations is one of those necessary evils that come with running a small business. Regulations are often complex and staying compliant can weigh heavy on business owners.
Regulations are complicated
Statutory payments is a prime example of a complex regulation. There are lots of definitions, qualifications, rules, and exceptions to understand. In addition, the business owner still has to actually calculate the statutory pay. Imagine the amount of time a business owner spends figuring out sick pay requirements for an employee. Now multiply that for all the other statutory payments, and for every employee. It’s enough to make any business owner sick themselves!
Software and advisors can help manage compliance more efficiently
Dealing with complicated government regulations is part of running a company. But it’s these little inefficiencies that many small businesses experience can add up and stifle a business. They could also lose valuable time, hard earned and much needed capital and opportunities to build their business.
But there’s no law that says businesses have to suffer alone.
Helping small businesses achieve regulatory compliance is a service that accounting software companies and accounting practices can provide to their clients. Together they can take the stress out of managing workflows, doing complicated calculations and assessing rules. As a result, businesses can find a more efficient way of dealing with regulations. And that could make all the difference between a profitable or unprofitable day, month or year.
Because of this, we’ve added some new functionality to Payroll in Xero.
Payroll in Xero can calculate Statutory Sick & Maternity Pay
Xero now lets you work out if your employees are eligible for statutory maternity (SMP) or sick leave (SSP). It then automatically processes these types of leave when you complete your pay run. So now there’s a much simpler way for small businesses and their accounting partners to comply with statutory pay regulations.
For more information about how to use SSP and SMP in Xero, check out our help centre
Statutory payments is just one of a huge number of recent improvements to Payroll in Xero.