Employing my first member of staff!!!! HELP!!

[crystaltash]

Hi guys,
So I'm all set to employ my first part time member of staff. But the whole pay thing is a nightmare!
I'm looking to start them off with 12-16 hours per week, but I was on the HMRC website and all the PAYE and Nat. Insurance stuff is melting my head!

How did you guys go about getting your head round it all?
It would be so much easier just to pay them straight, like with cash or a cheque, but is it ok to do this?

I can't afford an accountant and I've been filing my own tax returns up til now, which has been grand.
It's all very daunting and scary!
Any help would be so greatly appreciated!
:hug::hug:

xxxxx

 

[angelina221]

If they are employed then you need to sort their tax and insurance out. If they are self-employed then they need to do it.
My staff work on commission and i pay them by cheque at the end of the month. Make sure you get them to sign for it as you always need to have a paper trail.
If you want to employ then ring the tax office up. They really are quite helpful. They run free workshops to help people with this kind of stuff. Sorting their tax and insurance out really isn't complicated once you know how to do it. Give them a ring and see if there is a worshop in your area.

 

[jes]

Hi, First you must register yourself as an employer with HMRC. You will be given an employer reference number to quote when you need to make the monthly tax and NI payments.

You can work out your employees tax and NI, as well as your NI payment with awkward tax & NI tables or you can take the simple option and buy an approved payroll software (I use 12Pay) which works out everything for you

Always pay an employee with a cheque or bank transfer from your business account so you have proof of payment. Never pay with cash!

P.S. I know it's not part of your question but don't forget to take out employee insurance!

Jes

 

[Blue Rose]

Hi, First you must register yourself as an employer with HMRC. You will be given an employer reference number to quote when you need to make the monthly tax and NI payments.

You can work out your employees tax and NI, as well as your NI payment with awkward tax & NI tables or you can take the simple option and buy an approved payroll software (I use 12Pay) which works out everything for you

Always pay an employee with a cheque or bank transfer from your business account so you have proof of payment. Never pay with cash!

P.S. I know it's not part of your question but don't forget to take out employee insurance!

Jes

Once you've registered with HMRC as an employer they should send you out some info which includes a CD you can download onto your computer. This will work out all the tax & NI contributions payable without you having to buy any other software, saving you some dosh

If your employee is only part time, unless you are paying her about £10 per hour (if 12 hours) you won't have to deduct anything from her wages as she will be allowed to earn £125 before paying tax. Can't remember the exact figure before NI is payable.

If you have a salon already, your insurance policy will probably cover you for employers liability. Just double check & again it could save you some money.

 

[jes]

Once you've registered with HMRC as an employer they should send you out some info which includes a CD you can download onto your computer. This will work out all the tax & NI contributions payable without you having to buy any other software, saving you some dosh

That's right, but I didn't think that this software prints out payslips?

If your employee is only part time, unless you are paying her about £10 per hour (if 12 hours) you won't have to deduct anything from her wages as she will be allowed to earn £125 before paying tax. Can't remember the exact figure before NI is payable.

I think it's £109 (tax code depending) a week before you deduct NI, but you'll still have to declare zero deductions, monthly or quarterly, to HMRC.

I must say that although it sounds complicated the HMRC are really helpful once your registered

Jes

 

[cirrusbeauty]

if you are employing someone you will be liable for working out there tax and insuranceand providing them with a pay slip also dont forget as a employer you are liable for holiday pay and maternity pay if needed!

 

[gemma0408]

Hi guys,
So I'm all set to employ my first part time member of staff. But the whole pay thing is a nightmare!
I'm looking to start them off with 12-16 hours per week, but I was on the HMRC website and all the PAYE and Nat. Insurance stuff is melting my head!

How did you guys go about getting your head round it all?
It would be so much easier just to pay them straight, like with cash or a cheque, but is it ok to do this?

I can't afford an accountant and I've been filing my own tax returns up til now, which has been grand.
It's all very daunting and scary!
Any help would be so greatly appreciated!
:hug::hug:

xxxxx

Hi

I pay a junior accountant to do all my accounts, its great and isnt expensive! Im a nail technician not an accountant and i can't afford to make mistakes especially when it comes to tax! My advice to you is to look into paying an accountant, its makes life much easier and takes the pressure off!

If your staff arnt doing many hours they may not have to pay tax at the moment anyway?

Hope this helps?

Good luck

xxxxxx