The start of a new year often brings fresh opportunities – and fresh faces to your team. Hiring new employees is an exciting milestone for any business, but it also comes with its challenges, especially when it comes to setting up payroll. If you’re feeling a little overwhelmed, don’t worry! We’re here to guide you through the process step by step.
Why Is Payroll Setup So Important?
Getting payroll right from the start is crucial for your business. Proper payroll setup ensures your employees are paid correctly and on time, avoids costly penalties, and keeps your business compliant with UK regulations. For new hires, it’s the first step to a smooth and professional onboarding experience.
4 Steps to Set Up Payroll for New Employees
Register as an Employer
If you are hiring for the first time, you must register as an employer with HMRC. Once registered, you’ll receive a PAYE reference number, which you’ll need for all payroll processes.
Collect Employee Information
Gather the necessary details from your new hire, including:
- Full name and address
- Date of birth
- National Insurance (NI) number
- P45 form from their previous employer
Choose a Payroll System
You’ll need to decide how you’ll manage payroll. Will you use payroll software or outsource to a payroll provider like Cactus Payroll? Choosing the right system will save you time and ensure compliance with regulations.
Set Up Employee Deductions
Calculate and deduct the right amount for income tax, National Insurance contributions, and any workplace pension schemes. HMRC will provide tax codes to guide you.
How Cactus Payroll Can Help
Setting up payroll doesn’t have to be a daunting task. At Cactus Payroll, we specialise in simplifying payroll for businesses of all sizes. Whether you’re hiring your first employee or managing a growing team, we take the stress out of payroll so you can focus on running your business.
From registration and compliance to processing payslips and handling deductions, we’ve got you covered. Our team of experts ensures your payroll runs smoothly, accurately, and on time. If you need support this year, get in touch today!
