As your business develops, additional help might be necessary. Do you want to hire an employee but are worried about the formalities? Take advantage of our services.
The first step you must take is registering as an employer. After successfully going through this procedure and getting an ERN for the company, you can prepare a contract to hire an employee.
One of your main responsibilities as an employer is to prepare a payroll, where you will have employee details, their gross and net earnings (including any potential deductions), the employee’s tax code, their NI letter code, and the date of their payday.
No less important is submitting regular PAYE reports. In the event of hiring a subcontractor from the construction sector, it is also important to send CIS reports.
As an employer you must also decide whether your employees are eligible for a company pension fund. If at least one of your employees fulfils the legal requirements, it is mandatory that you open a pension fund.
If your company is growing and you want to hire an employee, you have to report to the correct legal department and to register as an employer. You will then receive a unique ERN for your company. This is necessary to complete all the mandatory formalities linked with hiring employees.
Registering as an employer is a legal requirement under the following circumstances:
You can register as an employer either on the HMRC website or over the phone. You will need your basic company details, registration number and (optionally) your Unique Taxpayer Reference (UTR) number. It usually takes up to 5 working days for the application to be reviewed.
Every employer’s basic responsibility is providing their employees with payslips, which contain all the most important details about their pay. Wages are paid on the basis of this document. A payslip is usually provided monthly, though depending on the branch and the contract the regularity may vary, e.g. it could be weekly, biweekly, or quarterly.
In a pay slip the employer also provides the pay day. This is the date by which the employee’s wage should enter his bank account. The pay day is also the deadline for sending in the regular PAYE report.
If you keep getting more clients, hiring an employee is often the only way to maintain a high standard of service. Unfortunately, apart from the various benefits, becoming an employer brings about more responsibilities. Preparing regular reports and payslips by the deadlines, as well as paying your employees on time, will help you to avoid any fines, and will ensure that your company has a good reputation amongst your employees.
As an employer, you have the responsibility to pay National Insurance contributions for your employees. Moreover, if even one of your employees qualifies for a pension scheme, you have to open a company pension fund, where you will register your employees. If you feel uncertain about the formalities linked with hiring an employee, ask us for help, and we will take care of everything for you.
Here is what we can offer:
Hiring an employee for your company can significantly speed up your business’ growth. On the other hand, it is a big responsibility. Fortunately, you don’t have to be alone in dealing with the formalities. In our office we will be able to take care of this for you, so that you can fully concentrate on what you do best, which is running a business!
If you decide to work with us, you have the guarantee that we will always find time for you, and we will answer all questions, even those that may seem trivial at first. In our day-to-day business, we focus on being approachable and transparent – with us, you always know what you’re paying for, and you don’t have to worry about any hidden costs.