Taking on staff is an important part of growth for most businesses, but by having employees brings a number of extra responsibilities to business owners and it is important that as an employer you get it right from the start to prevent any unnecessary costs in the future.
How much to pay someone
Pay is one of the most important factors when deciding on employing staff. The challenge to employers is to set pay levels that provide value for money to the business and reward employees fairly for their time and skills. However, all employers must pay their staff at least the minimum wage, this is the minimum hourly rate that most workers are entitled to.
Avoiding employing someone illegally
As an employer you need to be sure that the person that you are employing has the legal right to work in the UK. If you employ an illegal worker and haven’t checked their right to work you could be issued a penalty.
Click here to find out more about legally working in the UK.
Do you require to do a criminal records check
Your business may require to check an employee’s criminal record if you employee is to work in a field that requires one, such as working with children or security. This check is called a Disclosure and Barring Service (DBS) check.
If you require a DBS check to be done on a new or existing employee then please click here for further guidance.
Employers’ liability insurance
You must get Employers’ Liability insurance as soon as you become an employer and should cover you for a minimum of £5 million and come from an authorised insurer.
If you are not properly insured or do not display your insurance certificate you could be fined.
An insurance broker such as Southport Insurance Brokers will be able to offer you competitive rates on Employers’ Liability Insurance. Call them on 01704 500999 and mention Brash & Co for your free, no obligation quote.
Register as an employer
You would normally be required to register as an employer with HM Revenue & Customs (HMRC) when you start employing staff or using subcontractors for construction work.
You must register before the first payday and you should allow 10 working days prior to the first payday for the registration process to be completed. You should not register if it will be over 4 weeks before you start paying someone.
You must also register if you are employing yourself i.e. as the sole director of a limited company.
Brash & Co can register your business as an employer, just click here to complete a simple application form.
Once registered as an employer, you must then operate a PAYE system.
Employers usually have to operate pay as you earn (PAYE) as part of their payroll. PAYE is HM Revenue & Customs’ (HMRC) system to collect income tax and national insurance from employment – there are specific circumstances whereby an employer may be exempt from operating PAYE, however payroll records must still be kept.
Payments to employees include wages and salaries, however things like tips or bonuses, statutory sick or maternity pay are also subject to deductions under PAYE. Deductions include tax and national insurance but other deductions may need to be made such as student loan repayments or pension contributions.
All these payments and deductions need to be reported to HMRC on or before each payday. Employers can do this themselves or appoint a payroll provider to do this for them. Brash & Co have teamed up with Moorepay – a leading provider of payroll solutions to small and large businesses.
At the end of each month, the amount of tax and national insurance contributions should then be totalled up and a payment made to HMRC.
As part of the regular reports to HMRC, employers should tell HMRC when employees start and end their employment and if their circumstances change such as reaching state pension age or become director. Employers also need to report annually to HMRC about any expenses or benefits their employee’s may have.
Over the next few years it will compulsory for all employers to provide employees with a workplace pension scheme. This is called ‘automatic enrolment’.
If you need assistance with setting up ‘auto enrolment’, then our partners at Moorepay will be able guide you through it to ensure that you are fully complicate. Click here to arrange a Free quote.
Health & Safety
Many smaller businesses are not aware of just how demanding health and safety regulations can be. We provide an overview of these and highlight how your business can remain or become compliant.
We have also teamed up with Moorepay who provide (for a fee) a health & safety service to help keep businesses compliant and protected should the unexpected happen. Their team of experienced experts are on hand 24/7 to provide tailored guidance and documentation on any health & safety eventuality. Click here to arrange a Free quote.
What are the main principles involved in the recruitment of employees? Our guidance should help you avoid mistakes as well as improving your recruitment process and the quality of your employees.
In addition to this guidance, we have we have partnered up with Moorepay , to provide clients (for a fee) with an employment law service to assist businesses of any size to be compliant and protected should the unexpected happen. Their team of professionals are on hand to provide expert advice on any employment law issue. Click here to arrange a Free quote.
Other employment issues
There may be other issues that are not listed here but should be available in our factsheet section. If not please do not hesitate to contact us at Brash & Co.