A growing business may reach the point of needing to take on some outside help and the prospect of becoming someone’s ‘boss’ for the first time can seem daunting. Below are some steps which will hopefully make the process easier to tackle.
- Figure out what you’ll be offering. Before advertising the role have a clear idea of what the job package will look like. Will the hours and days worked be the same each week or will this be changeable? Do you want to offer some guaranteed hours but then have overtime available at busy times of year? Or will you be offering a casual contract to start, with the potential of becoming part time or full time further down the line? Setting this out at the beginning will ensure you find the right fit for your business.
- Check minimum wage rules. Make sure the salary you are offering meets the rate required.
- Get the paperwork ready. Many first-time employers don’t realise that a simple contract known as a ‘Written statement of employment’ is required by law. This sets out things like, holiday entitlement, sick pay and procedures, any probation periods or rules and notice requirements. Whilst this may feel like a hassle, there are many resources online to help an employer draw this up and having both parties aware of their rights and obligations, does actually make things easier in the long run.
- Get the workplace ready. Employers must make sure that the area in which the employee will be working is safe and accessible.
- Do relevant checks. Once you have a prospective employee you will need to make sure they have the right to work in the UK. Depending on the type of role, a DBS check may also be needed.
- Get Insured! You will need employer’s liability insurance as soon as the employee starts working for you, with hefty fines charged by the day for not having this!
- Think about payroll. Do you want to run the payroll yourself or engage a payroll bureau or accountant to do it for you?
Employers who have a member of staff earning at least £96 per week or earning less than this but receiving other income, must register with HMRC for a PAYE scheme. They must then calculate the wages electronically using software.
Other responsibilities include –
Making a submission to HMRC every time they pay their employee.
Working out how much Tax and National Insurance is payable and deducting this from wages.
Checking if an employee is eligible to be enrolled into a workplace pension scheme and calculating any contributions due.
All sound a bit overwhelming? The below step by step guide will take you through exactly what is required when operating payroll so that you can choose if running it yourself is right for you and your business.
Helpful Resources:
https://www.gov.uk/national-minimum-wage
https://www.gov.uk/employment-contracts-and-conditions/written-statement-of-employment-particulars
https://www.hse.gov.uk/managing/introduction/business-guidance.htm
