First employee

[Pat Testing]

Hi,

I’m looking for some advice on how to go about employing someone. My wife recently started a business which is going well and she needs to employ someone. She has someone lined up for the position and we just need to know what to do next.

I know she will need to register as an employer with HMRC and get some payroll software, so looking for some recommendations for that.

Also looking for some advice on how to sort out an employment contract. The position will be 16 hours a week on minimum wage.

[CaiosH]

I asked about payroll software a little while back.

Seemed the consensus if its one employee was just to use HMRC Basic PAYE Tools. I've downloaded it and just waiting for my code from HMRC after registering as an employer.

[trickywoo]

If you have business insurance, which you’ll need with an employee if you don’t already have it, they quite often include free HR advice.

You’ll also need to set up a pension. Even if they opt out you still need one in the first place.

[Rufus Stone]

The earnings threshold for auto enrolment to a workplace pension arrangement is £10,000 pa.

[Pat Testing]

Thanks.

I’ve had a look at the HMRC website, alongside their own basic PAYE they list a number of other approved free options. Do these offer anything over above HMRC’s software?

Employers liability insurance is in place, don’t know if it comes HR advice, but if it does would they assist with an employment contract? I’ve found some templates online but am wary of them being any good.

Employees salary will be under £9k so by my understanding auto-enrolment shouldn’t be needed. It will be just over the threshold for employers NICS though I believe.

[Abc321]

Basic Tools isn't bad but can be rather frustrating (I know from experience!) - there are no 'upgrades', if thats what you are asking?

The employment contract you will need to nip and modify yourself, it is a pain I know but obviously the terms are yours only.

I have a small accountancy practise, and offer payroll services for extremely reasonable rates if you want to take the workload off, I can also help with the Employment Contract as have done these in the past - I use BrightPay personally for the payroll which is one of the many software available.

[gotoPzero]

Be careful around the free HR companies. That's all I will say.

Back to the question

HMRC PAYE is fine - we used it for about 10 people.
Don't forget to pay the NICs!
Get a sickness / lateness / bereavement policy in place and stick to it.
Set up holiday excel sheet before they start.
Keep your employment contract basic - place of work, time of work, hours, sick pay, pension, disciplinary rules and holidays - refer everything else to the persons manager.
Make sure the person gets paid absolutely bang on time and gets their pay slip physically printed and handed to them. We used to pay everyone at a set time on a set day.

Anything involving sick pay, holiday requests etc always make sure its in writing - email. Keep them, forever!

When this person arrives make sure they have a P45 and that you set them up accordingly.

Familiarise yourself with the likes of attachment of earnings orders, SSP, child maintenance, maternity etc. You would be amazed how often these things come up.

HTH.

[essayer]

Congrats
Don't forget your Health and Safety At Work poster

You should ensure you have the relevant HR policies available - last time I looked (ten years ago!) there were companies that would provide a set of compliant documentation covering holiday rules, sickness, that kind of thing - wasn't a huge amount of cash

[Pat Testing]

Thanks again all that have replied. Seems to be plenty of things to consider. Please add anything else you think we may have missed.

[Rufus Stone]

Pat Testing said:

Thanks.

Employees salary will be under £9k so by my understanding auto-enrolment shouldn’t be needed. It will be just over the threshold for employers NICS though I believe.

Be sure to claim the employers NI allowance via the payroll, and there won't be any employers NI to pay.