First Steps as an Employer

First Steps as an EmployerFirst Steps as an Employer v2 1

Session contentsWe will look at the following• Becoming an employer.• Employer responsibilities.• Online filing.• Starters and leavers.First Steps as an Employer v2 2

Who counts as an employee?• Anyone who works for you under a ‘contract of service’ .• Includes full-time, part-time, ti short term workers anddirectors of limited companies.• Employment status.First Steps as an Employer v2 3

An employer’s first steps• Obtain new employee’s personal records.• Register as an employer with HMRC.• Set up a payroll system, that is, operate a Pay As YouEarn (PAYE) scheme.First Steps as an Employer v2 4

An employer’s first steps - continued• Payments to HMRC.• Making use of the help available.First Steps as an Employer v2 5

Help available to employers• Websites and helplines.• P49 ‘Paying i someone for the first time’.’• BEST workshops.• Basic PAYE Tools (BPT).First Steps as an Employer v2 6

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P11 Calculator• Set up an Employer Database.• Add employee details.• Enter pay details and date of payment.• Back up your data.First Steps as an Employer v2 8

National Minimum Wage (NMW)From 1 October 2011• £6.08 per hour for workers aged 21 years and over.• £4.98 for workers aged 18 – 20 inclusive.• £3.68 for workers under 18 who are no longer ofcompulsory school age.• £2.60 for apprentices either under 19 or over 19 and in thefirst year of their apprenticeship.First Steps as an Employer v2 9

Other employer responsibilities• Identity checks.• Stakeholder Pensions (Pensions Regulator 0870 606 3636).• Statutory Sick Pay.First Steps as an Employer v2 10

Other employer responsibilities - continued• Other statutory payments.• Expenses and benefits.• Employer Annual Return.First Steps as an Employer v2 11

Employer Annual Return (EAR)• Due by 19 May.• Virtually all employers must file their EAR online.First Steps as an Employer v2 12

Online Filing• Employer options available.• Employer obligations.• Benefits.First Steps as an Employer v2 13

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Penalties• Reason for introduction.• Reasonable care.First Steps as an Employer v2 15

Starters and Leavers• P45.• P46.First Steps as an Employer v2 16

P45Four parts:• Part 1 – leaving details.• Part 1A – employee copy.• Parts 2 & 3 – for the new employer.First Steps as an Employer v2 17

P46Information required:• Employee details.• New employer details.First Steps as an Employer v2 18

P45• Employer completes Part 1 when employee leaves andsubmits online to HMRC.• Parts 1A, 2 & 3 given to leaving employee.First Steps as an Employer v2 19

Session contents• Becoming an employer.• Employer responsibilities.• Online filing.• Starters and leavers.First Steps as an Employer v2 20