New employers check list
Taking on your first employee can help a business grow, although it also brings a number of important responsibilities.
Before employing staff for the first time, business owners should consider the following points:
- Register as an employer with HM Revenue and Customs before the first payday.
- Set up a payroll system capable of operating PAYE and filing Real Time Information reports with HMRC.
- Check whether workplace pension auto-enrolment rules apply and ensure that pension responsibilities are understood.
- Prepare written contracts of employment setting out pay, hours, holiday entitlement, sickness arrangements and notice periods.
- Make sure you are aware of, and comply with, the National Living Wage and National Minimum Wage regulations.
- Confirm that employees have the legal right to work in the UK and retain copies of supporting documents.
- Arrange employers’ liability insurance, which is normally a legal requirement for businesses employing staff.
- Budget for the full cost of employment, not just salary. Employers should also allow for National Insurance, pension contributions, holiday pay, training costs and equipment.
- Decide how wages and expenses will be paid and ensure that sufficient business cash flow is available each month.
- Put in place procedures covering sickness reporting, holidays, disciplinary matters and employee records.
- Consider whether health and safety requirements apply to the workplace, particularly where employees will use machinery, vehicles or specialist equipment.
- Review whether additional software, office space, telephones or IT systems will be needed as staffing levels increase.
- Ensure that employee data is handled securely and in line with UK data protection requirements.
- Plan induction and training procedures to help new employees settle into the business quickly and productively.
- Review pricing and profitability regularly, as employing staff often increases fixed monthly overheads.
Careful preparation before employing staff can help reduce administrative problems, improve compliance and support the long-term growth of the business. If you need help integrating any of these points, please call, we can assist you.
