There are a number of rules and regulations that you must be aware of when you employ staff for the first time.
HMRC’s guidance sets out some important issues to be aware of when becoming an employer.
- Decide how much to pay someone – you must pay your employee at least the National Minimum Wage.
- Check if someone has the legal right to work in the UK. You may have to do other employment checks as well.
- Check if you need to apply for a DBS check (formerly known as a CRB check) if you work in a field that requires one, e.g. with vulnerable people or security.
- Take out employment insurance – you will need employers’ liability insurance as soon as you become an employer.
- Send details of the job (including terms and conditions) in writing to your employee. You need to give your employee a written statement of employment if you are employing someone for more than 1 month.
- Ensure that you register as an employer with HMRC. You can do this up to 4 weeks before you pay your new staff. This process must also be completed by directors of a limited company who employ themselves to work in the company.
- Check if you need to automatically enrol your staff into a workplace pension scheme.
When it comes to paying staff, you can use a payroll provider or process your payroll in-house. If you decide to run your own payroll you must choose suitable payroll software. Setting up payroll for the first time can be an onerous and complex task.
We can help you complete this set-up process and look after the payroll for you. Call if you need more information.
Source:HM Revenue & Customs| 13-05-2024