Payroll guide

Looking for some help with payroll?

Perhaps you will soon be hiring your first employee?

There are a few things you will need to consider if this is the case….

Producing payslips, deducting tax, factoring in holiday pay, autoenrollment for pensions, and ensuring you have an appropriate employment contract in place, among other things!

But don’t worry! Xoba is here to help.

Here is a simple guide to help you with the legal stuff.

Becoming an employer for the first time

The first time you take on staff, you need to make sure you register with HMRC as an employer. They give you an employer reference, and you will be able to access a PAYE account online. This allows you to make payroll submissions to HMRC each time you pay your staff.

Getting started is easy. Simply give Xoba a call on 07934 917122 and we will be able to assess your needs and get you registered with HMRC. We make all the necessary submissions for you, and keep track of your other duties.

HMRC gives a list of 7 important things to do when employing staff for the first time.

Employment contracts

Its important to clearly define what your employee’s rights, responsibilities, duties and employment conditions are. The terms set out in the employment contract help protect both you and your employee.

HMRC has a helpful guide here.

However, we know that it can be difficult doing this for this first time, so you might like to use a template from a legal document drafting website such as LawDepot.

Employment contracts

Its important to clearly define what your employee’s rights, responsibilities, duties and employment conditions are. The terms set out in the employment contract help protect both you and your employee.

HMRC has a helpful guide here.

However, we know that it can be difficult doing this for this first time, so you might like to use a template from a legal document drafting website such as LawDepot.

Paying staff, deducting tax and complying with autoenrollment

When you pay your staff, they need to be provided with a payslip. As part of Xoba’s payroll service, we prepare payslips for all staff members and can email them out directly to them. We calculate the tax and national insurance deductions for the employee and employer, and we prompt you to make a payment to HMRC.

For every staff member, we check their autoenrollment status and we will prompt you to enrol in a pension scheme if required. We can set the scheme up and calculate the contributions for you. All you need to do is make a payment when prompted, and in most cases it’s by direct debit.

It really couldn’t be simpler! We know payroll can be a pain, so we like to keep it as simple as possible for our clients.

Changes to your payroll

Every now and again, you might need to account for something different in your payroll. Please let Xoba know the details and we will ensure your payroll is accurate. Changes to your payroll might include:

  • New staff
  • Leavers
  • Pay rises
  • Additional sums, such as overtime, bonus, commission, accrued holiday pay taken in lieu, etc.
  • Any deductions to pay, such as for the use of a company car, or for an absence.
  • Statutory sick pay or other statutory pay
  • Holiday days taken
  • A claim to offset any CIS deductions against your PAYE bill

Changes to your payroll

Every now and again, you might need to account for something different in your payroll. Please let Xoba know the details and we will ensure your payroll is accurate. Changes to your payroll might include:

  • New staff
  • Leavers
  • Pay rises
  • Additional sums, such as overtime, bonus, commission, accrued holiday pay taken in lieu, etc.
  • Any deductions to pay, such as for the use of a company car, or for an absence.
  • Statutory sick pay or other statutory pay
  • Holiday days taken
  • A claim to offset any CIS deductions against your PAYE bill

New staff members

Finally, if you take on a new member of staff, you will need to tell us their details so that we can account for their pay correctly, and deduct tax and national insurance appropriately. There is some very specific information we will need here.

To make this as easy as possible, here are a couple of forms to help you collect this information:

  1. New Employee starter form – for the employer to fill in
  2. New Starter-checklist – to use if the employee does not have a P45 from a previous employer

Please provide these forms to us along with any other information you think will be helpful and we will get your new staff member set up on payroll ready for their first payslip.

    Summary

    There you have it.

    Pretty soon you should be up and running with payroll, effortlessly.

    And if you ever have any questions at all, just give us a call on 07934 917122 and we can help you no matter the issue.

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