Being in a position to take on your first employee is an exciting time as it usually indicates hitting a forecast target, and recognising a need for you to be working on rather than in your business. However, it comes with it’s own rules and regulations, many of which have to be implemented before your new hire even walks through the door.
HMRC’s guidance sets out 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.
- Get employment insurance – you 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’re 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 generally have the choice between using a payroll provider or running your payroll yourself. If you decide to run your own payroll you must choose suitable payroll software.
Payroll can be complex burden to business owners, with holiday pay calculations, sick pay, parental leave and then if they apply to you commission rates as tips to be calculated also. Software will provide basic functionality but with MJB Avanti supporting you, you have an expert to advise on all aspects of your payroll on your team.
Call MJB Avanti | 08000 388799 today to discuss your payroll needs.