What sort of rates to charge for payroll?

I've been asked if I'd be interested in running payroll for a small company, with 10 employees. Paid weekly. I can use the payroll system I use for the company I work for to do this. The new company has asked me to quote them a figure for dealing with the payroll for the year, including P35, P45's, p30's, the issue of payslips every week etc. Anyone advise?

Thanks.

I presume your existing employer has agreed to your use of their system for your own 'nixer'?

Payroll Rates

Work out your own hourly rate and estimate how much time you will be spending doing the 'nixer' each week.

re

Just to clear this up, it is not a 'nixer'. My current boss is also a director in this new company, and he has asked me to do it. So yes, he is aware that I will be using the equipment. I have no idea what to charge them for it, as I would most likely be billing them at the end of 6 months, and it would not be an hourly rate as such but more a fixed sum.

thanks.

re

> I presume your existing employer has agreed to your use of their system for your own 'nixer'?

:rolleyes

Re: re

As Miner said work out the average number of hours you think you will spend per week by an hourly rate you would expect

Then multiply by 26 or 52, for 6 months or 12 months
(This is how an accountancy firm would do it)

Then you can discount or increase depending on how you feel the price looks for the service to be provided


BTW,

I presume your existing employer has agreed to your use of their system for your own 'nixer'?

Click to expand...

In what context is a statement like that of any relevance or have any place on a message board purporting to offer financial advice

Billing

If your boss is the director of both companies, then it really does not matter how much you charge (within reason), as one of his companies is buying services from another of his companies. One company could be used as a cost centre and the other a profit centre. Of course, it is a different matter if he / she is a minor owner / share holder in the company purchasing the service.

Cross charging between companies is very common. Company A pays tax on the sale of the service, while company B claims the charge as a business expense.