Payroll
With payroll becoming an increasingly complicated area, and with incentives
available for electronic filing of payroll information, we help many
small businesses in Brighton and Hove to pay their employees.
Our payroll service includes:
- Choice of weekly, 2-weekly, 4-weekly or monthly processing
- A clear summary report for each payroll sent by email and by post
- Printed payslips for all employees
- Processing of all joiners, and P45s for leavers
- Calculation of Statutory Sick Pay
- Calculation of Statutory Maternity Pay
- Calculation of Statutory Paternity Pay
- Calculation of Statutory Adoption Pay
- Processing of Student Loan deductions
- Processing of Attachment of Earnings Orders
- Advice on payments to HMRC
- Completion of the P35 annual return
- Printed P60
certificates for your employees.
Some clients also
like us to pay their employees directly from the company bank account, which
we are happy to do.
We have a history of operating payrolls for businesses who already have
other accountants that they wish to stay with, but would prefer to use a payroll
service in Brighton.
Frequently Asked Questions about payroll
I want to take on a new member of staff. What do I need to do?
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Since 1st May 2004 the Government changed the rules regarding the types
of documents employers need to check when taking on a new employee.
This is to help prevent illegal working. You will need to ask your new
employee to produce a passport, work permit, birth certificate or
combination of other acceptable documents, which you should take copies of.
Full details are available in the Home Office
guide for
employers. Until you are able to satisfy yourself that the employee
is entitled to work in the UK you should not employ them.
You will also need your new employee to give you their P45, or get them
to complete a
P46 form before their
first pay day. It is
important that these documents show the employee's full name, address, National
Insurance number, date of birth and date employment started. Contact us for
more help and advice on ensuring you have the correct
documentation.
What else do I need to do as an employer?
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For every new employee who works for you for over a month, within 2 months
of them starting you must have supplied them with an employment contract, or
some other
written statement
of employment particulars.
Unless
you are the sole employee of a company which you also own, it is compulsory
to have employers' liability insurance. A certificate from the insurer
confirming this insurance should be displayed where employees can see it.
If you employ 5 or more people (including directors), within 3 months you
must offer
access to a stakeholder pension to all employees who have worked for you for
over 3 months, and who have earned over £90 per week continuously over that
time. See more detailed information on
stakeholder pensions
How much holiday are my employees entitled to?
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As from 1 October 2007, employees are entitled to a minimum of 4.8 weeks paid holiday per year, based on their standard working week. Their
entitlement can include bank holidays. Part-time workers are entitled to the same holidays as full time workers,
calculated on a pro-rata basis. For example, an employee who works 2 days a
week is entitled to 9.6 days paid holiday - their normal working week
multiplied by 4.8. Full, detailed information on holiday entitlements is
available
here
and
here.
My employee has gone sick. Do I have to pay them Statutory Sick Pay?
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Once you have decided that your employee has satisfied the qualifying
conditions, which are:
- has done some work for you under their contract
- has been sick for four or more days in a row
- has notified you of their sickness
- has had average weekly earnings of not less than £90.00 within the last eight weeks prior to start of incapacity.
Then you have to start paying them SSP. The rules governing SSP are complicated, and it is impossible to go into great detail here. For further
information please contact us with your specific enquiry.
My employee is a student, and doesn't think he should be paying tax. What are
the rules affecting students?
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There is no automatic tax exemption for students. However, if they are on a course in the UK and work solely in the
holiday periods (summer, Christmas, Easter) they may be able to receive their
wages without tax being deducted if they complete a
P38(s) student employees
form.
To receive wages without tax being deducted they must:
- be a student who is planning to continue being a
student until after 5 April next; and
- not have a total income from all sources - apart
from student loans, scholarships and educational grants - in the tax year of
more than £5,435.
If your employee does not meet the P38(S) conditions, or is on a non-UK
college or university course, they should ask you for a P46
form to complete, sign and give back to you. They will then be taxed as a normal employee.
Do I have to deduct tax from casual wages?
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If the member of staff is only working for you for one week or less, AND they are paid less than £90, you just need to keep a note of their name, address, and the amount and date of payment.
In all other cases they may need to have tax deducted from their pay, depending on their level of pay and their tax status.
When do I have to pay my payroll taxes, and what happens if I don’t pay?
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PAYE, national insurance and CIS deductions are normally paid together
for each tax month, which ends on the 5th of the month. Payment is due on the following 19th (for
postal payments) or on the 22nd (for electronic payments). Businesses whose tax payable
averages less than £1,500 per month may pay quarterly instead of monthly. In all cases,
interest is charged on any tax still outstanding on the 19 April following the tax year. It is
calculated on a daily basis, at an annual rate of around 7%.
Got another question? Email us and we'll try to help.
Useful payroll links for small employers
Day to day payroll guidance from HM Revenue & Customs
P46 form for new employees without a P45
How to make payments of PAYE and National Insurance
Payroll