Hiring new employees is a positive sign for businesses and a primary sign of growth. Once the induction stage is completed, the employee should be registered within the company’s payroll system. This ensures a smoother salary credit process and is often considered a matter of legal compliance.
Vital Things to Inform the Payroll Company:
If your business outsources the payroll service, you should notify the company about the new addition. The service provider is required to know all the basic information about the employee’s salary. This includes wages, bonuses, deductions and net pay. Upon compiling the information, the payroll service in Newcastle can provide a complete service.
Steps for Registering a New Employee into Payroll:
Here are a few steps that you should follow as a business to register a new employee to the payroll system.
Register to HMRC:
As an employer, it is crucial to get registered with HMRC. You should perform the registration before the first payday of the new employee. You will receive a PAYE reference number, which is crucial in salary disbursement. It is worth noting that you can register yourself as an employer up to two months before your employee’s first payday.
Collect and Keep Records:
It is crucial for any employer to keep the employee’s records. These records should contain information about the net salary and deductions. Provide the information to the payroll outsourcing service, enabling the company to pay the employee on time. Ensure that you send these records to your HMRC, too, to check if they provide the correct amount of tax.
Report Pay and Deductions:
Whether you use dedicated payroll software or work with a third party, you should report payment details properly. Ensure you carry out the tasks before your new employee’s first payday. Take note of the gross pay, in-hand salary, insurance, and other deductions. Send them to the third-party payroll service to pay your employees on time.
You should perform tasks to register a new employee on your payroll. For professional assistance, contact Northumbria Payroll Solutions. We are a dedicated managed payroll system working in Newcastle and its adjacent areas. For more details, visit our website today.