Payroll Essentials for New Employers
Needing to employ staff is always a good sign for a business. On the one hand it means that the business is growing and has enough business to warrant the employment of staff. On the other hand it translates into additional work to administer a Pay as You Earn scheme.
Registering for PAYE
Employers should register as soon as possible when a qualifying employee is appointed. It is possible to register up to four weeks in advance of the first employees pay day.
Information Required
Generally the information provided includes the details about the business. National insurance number and the tax office reference of the employer. You will also have to give an indication of the likely number of employees, frequency of payment, the date the first employee was appointed and the first payment date.
Payroll Records
Accurate payroll records are essential. The employee records must include the name and address of the employee, national insurance number, date of birth, income tax code, all payments and benefits and all deductions made. Each employee must receive a payslip detailing the income tax and national insurance deducted from gross salaries.
For the employer it means thinking about the options pertaining to the long term management of your payroll. Options range from doing it yourself, employing someone to perform this role or outsourcing your payroll. Whatever the option you choose it should make running your business easier.
