As an employer you have to charge PAYE on the payments you make to your employees if their earnings reach the National Insurance Lower Earnings Limit of£5,044 a year. (2010-11 figures)
You also have to deduct National Insurance Contributions if they earn over £110 per week. (2010-11 figures)
Legally you have to provide them with a statement of their wages and these deductions - in other words a Pay Slip! You also have to submit a variety of forms to, and make regular payments to, the HMRC, as well as keeping thorough employment records.
Sometime the amount of paperwork and tasks you need to complete can be overwhelming...
Setup of Payroll: For either new or existing employers, we can set up software on your computer, and any other files and records required, so that you can run a fully compliant payroll system yourself. All setups includes registration with HMRC if necessary and full written instructions of deadlines, returns, employee records etc. - and by doing it yourself you could save yourself a lot of money on your future accountancy bills!
For clients using any of our payroll services - we will be happy to explain the payroll process to you, and answer any payroll related queries at any time during the service term, over the phone or by e-mail.
We can liaise with the HMRC on your behalf if assigned as your agent.
We can also advise you on payroll and employment issues, such as minimum wage requirements, compulsory identification checks, and related schemes such as an Employee Share Scheme or Suggestion Pay.
Our rates are shown on the What We Charge page.
For PAYE and NI the monthly periods are 6th to 5th of next month - i.e. 6th January - 5th February.
PAYE and NI payments are due monthly, by the 22nd of the next month.
For example, if you're making a return to cover payments you made in the tax month from 6 May to 5 June, it must reach HMRC by 19 June.
Companies due to pay less than £1,500 of PAYE & NI a month can opt to pay quarterly. Their payment would then be due on the 22nd of the month in which that quarter ends.
Recent changes in the law mean that businesses can now be prosecuted up to £10,000 per each illegal worker found working for their company.
It is therefore imperative that all proper identification checks are made before any new personnel are employed. This includes photocopying multiple sections of their passport, and being provided with documentation of their permanent address.
Further details can be provided if requested.