Whether you’re recruiting your first employee or growing your team, there is a checklist of things you need to follow for every person you employ. To stay compliant with payroll you’ll need to do the following:
1. Make sure you are registered as an employer with HMRC.
2. Apply for and get a PAYE online login.
3. Set up a Pay As You Earn (PAYE) payroll scheme. If you use a payroll provider, they can also do this for you.
4. Have some form of payroll software set up to help manage the process.
5. Get the required information from your new employee(s) to work out their tax code(s). A P45 or HMRC’s starter checklist are the most useful.
6. Get the new employee(s) National Insurance number.
7. Register your new employee with HMRC using a Full Payment Submission.
These may seem like quite a task, but this process can be just the tip of the iceberg. You may also have other responsibilities as an employer, such as setting up employer’s liability insurance and creating the correct documents for the new employee, such as employment contracts.