Blog.
Accounts made easy.
PAYE and Payroll for employers. Including New Starter Check List Download
Intro
If you are employing staff, you are legally abliged to operate PAYE as part of your payroll. PAYE is HMRC's system to collect Income Tax and National Insurance. Unless your staff earn less than £120 per week you will need to register for PAYE.
Payments and Deductions
When paying those employees who earn more than £120 per week, you need to pay staff through payroll and take deductions for PAYE.
Payments to staff should include their salary or wages, as well as any bonuses, sick or parent pay.
Reporting to HMRC
If you run payroll, this should be made to HMRC on or before each payday.
Payroll software can be used - we use Brightpay.
This will calculate how much tax and NI each employee should pay as well as the Employer amount.
Paying HMRC
After deducting tax and NI from staff you will then need to forward that payment onto HMRC.
New Employee? Print the starter checklist here.
