Help with employing first member of staff
Discussion
We're looking at offering a part-time job. I have employed friends in the past for help with a few projects but we're now looking at getting an outsider in so I'm in uncharted waters.
My question is, what legal issues do I now need to consider?
The main things I have already thought of are:
-do we need to declare the employment to HMRC, etc.? Also, is there anything else we need to do other than informing our accountant of the employment and how much their weekly/monthly pay has been?
- We will not be paying above the Lower Earnings Limit of £112 per week to start with at least
-we will need to make sure our warehouse is tidy with no trip hazards. I'm guessing we should also have health & safety procedures in place to prevent accidents and to also show our responsibility should they occur.
-We already have public liability insurance and cover for employees on our insurance
any other suggestions/stuff I need to consider would be most appreciated.
My question is, what legal issues do I now need to consider?
The main things I have already thought of are:
-do we need to declare the employment to HMRC, etc.? Also, is there anything else we need to do other than informing our accountant of the employment and how much their weekly/monthly pay has been?
- We will not be paying above the Lower Earnings Limit of £112 per week to start with at least
-we will need to make sure our warehouse is tidy with no trip hazards. I'm guessing we should also have health & safety procedures in place to prevent accidents and to also show our responsibility should they occur.
-We already have public liability insurance and cover for employees on our insurance
any other suggestions/stuff I need to consider would be most appreciated.
KevinCamaroSS said:
Just a couple of things come immediately to mind:
HMRC will have to know, I am not sure if there is something about registering as an employer, though I presume you pay yourself via PAYE?
Pension scheme?
I'm a sole trader so it's just drawings at the moment. I don't think they'll be earning enough to have to be auto-enrolled in the pension scheme. I bloody hope not anyway.HMRC will have to know, I am not sure if there is something about registering as an employer, though I presume you pay yourself via PAYE?
Pension scheme?
Are you paying minimum wage- yes, we will
Contract of employment terms and conditions- okay, I'll look into that
Who will do your Human resources / personnel- that will end up being me no doubt
You'll need HR procedures in place, pay frequency, disciplinary, notice periods.- okay
Take references for any potential employee.- okay
Contract of employment terms and conditions- okay, I'll look into that
Who will do your Human resources / personnel- that will end up being me no doubt
You'll need HR procedures in place, pay frequency, disciplinary, notice periods.- okay
Take references for any potential employee.- okay
You have an employee, therefore you MUST register as an employer in order to administer the PAYE and NI arising on their wages. This in turn means you need to register for the HMRC Real Time Information scheme (RTI) so that you can notify HMRC EVERY time the payroll is run - whether weekly or monthly.
If you don't want the hassle of administering payroll and dealing with monthly or weekly RTI submissions, you can get a third party (e.g. your accountant or a payroll agent) to do it for you.
Secondly, as you are now an employer with an employee, you will need to set in motion of getting regsistered for Auto-Enrolment i.e. you need to set up a pension scheme into which both you and your employee will make a contribution each time the payroll is run.
You need to talk to your accountant.
If you don't want the hassle of administering payroll and dealing with monthly or weekly RTI submissions, you can get a third party (e.g. your accountant or a payroll agent) to do it for you.
Secondly, as you are now an employer with an employee, you will need to set in motion of getting regsistered for Auto-Enrolment i.e. you need to set up a pension scheme into which both you and your employee will make a contribution each time the payroll is run.
You need to talk to your accountant.
Eric Mc said:
You have an employee, therefore you MUST register as an employer in order to administer the PAYE and NI arising on their wages. This in turn means you need to register for the HMRC Real Time Information scheme (RTI) so that you can notify HMRC EVERY time the payroll is run - whether weekly or monthly.
If you don't want the hassle of administering payroll and dealing with monthly or weekly RTI submissions, you can get a third party (e.g. your accountant or a payroll agent) to do it for you.
Secondly, as you are now an employer with an employee, you will need to set in motion of getting regsistered for Auto-Enrolment i.e. you need to set up a pension scheme into which both you and your employee will make a contribution each time the payroll is run.
You need to talk to your accountant.
Thanks Eric, I will talk to the accountants but could you tell me if all of the above applies if the employee is paid below the Lower Earnings Limit?If you don't want the hassle of administering payroll and dealing with monthly or weekly RTI submissions, you can get a third party (e.g. your accountant or a payroll agent) to do it for you.
Secondly, as you are now an employer with an employee, you will need to set in motion of getting regsistered for Auto-Enrolment i.e. you need to set up a pension scheme into which both you and your employee will make a contribution each time the payroll is run.
You need to talk to your accountant.
All here -
http://www.thepensionsregulator.gov.uk/automatic-e...
The Pension Regulator website is where you need to be reading. Again, your accountant should help.
http://www.thepensionsregulator.gov.uk/automatic-e...
The Pension Regulator website is where you need to be reading. Again, your accountant should help.
Eric Mc said:
All here -
[url]http://www.thepensionsregulator.gov.uk/automatic-enrolment-earnings-threshold.aspx[url]
The Pension Regulator website is where you need to be reading. Again, your accountant should help.
I see. So the LEL is specifically about pension contributions rather than telling HMRC about the pay. I was clearly under a misapprehension[url]http://www.thepensionsregulator.gov.uk/automatic-enrolment-earnings-threshold.aspx[url]
The Pension Regulator website is where you need to be reading. Again, your accountant should help.
mr.man said:
As you have fewer than five employees you are not required to carry out risk assessments
nor do you have to have a written Health & Safety policy.
no legal requirement, but if you dont do it, and the employee gets injured you and your insurers will be liable.nor do you have to have a written Health & Safety policy.
best practice to do it now. its not that hard
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