TAKING ON AN EMPLOYEE - WHAT DO I NEED TO KNOW (2003-12-05)
- Q: WHEN SHOULD I REGISTER?
A: You should register with the Inland Revenue by calling the New Employers Set-up line 0845 6070143 or by contacting your accountant for further advice if any employee is going to earn above £89.00 per week or £385.00 per month. (2003/04)
If your employees earns under £89.00 per week or £385.00 per month and this is their only job then it is not necessary to register with the Inland Revenue. You will however need them to sign a Form P46 stating that this is their only job and giving the following details:- - National Insurance Number
- Address
- Date of Birth
Keep this in a safe place in case of query from the Inland Revenue. - Q: HOW MUCH DO I NEED TO PAY ?
A: There is now a statutory minimum wage applicable to both part-time and full-time employees:- - aged 18 – 21 £3.80
- aged 22 and over £4.50
- Q: HOW DO I OPERATE A PAYROLL ?
A: Payrolls can be run manually, with the help of the booklets provided by the Inland Revenue or by computer programme either way it is necessary to produce:- - either weekly or monthly payslips
- P11 working sheets that show the running totals of pay to date, tax and national insurance deductions for each employee
- monthly PAYE/N.I. records for making regular payments to the Inland Revenue
- Forms P45 for employees joining or leaving
- For year end 5 April you will need to complete:-
- Form P35 Annual Return listing all employees throughout the year
- P14/P60’s detailing individual employees total pay, national insurance and tax payments for the year
REMEMBER IT IS BETTER TO GET IT RIGHT FROM THE START. IF IN DOUBT ASK FOR ADVICE IT CAN BE COSTLY IF YOU GET IT WRONG !
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