GeStep Ltd can help you take care of all your payroll needs. The information below will help you understand different elements of payroll….
PAYE (Pay as You Earn)
Whether you are a sole trader or a limited company, if you are employing staff you need to register for PAYE this means that you will have an employer’s reference number to submit any tax for your employees.
Failing to register on time may result in a fine.
RTI (Real Time Information)
This means that whenever you pay your staff you need to inform HMRC how much tax and national insurance has been collected from them.
Failing to submit on time will result in a fine.
NIC (National Insurance Contributions)
National insurance is a tax, and most employees who earn over the lower earnings limit will have this deducted from their salary.
NIC is not only paid by the employee, but also by the employer.
Employer NIC Allowance
This was brought in by the government a couple of years ago as an incentive to take on employees. This means that at the moment you won’t have to pay any employer National Insurance contributions at all if you usually pay less than £2,000 a year.
Auto Enrolment
The law on workplace pensions has changed. Every employer with at least one member of staff now has new duties, including putting those who meet certain criteria into a workplace pension scheme and contributing towards it.
This is called automatic enrolment. It’s called this because it’s automatic for your staff – they don’t have to do anything to be enrolled into your pension scheme. But it’s not automatic for you. You need to take steps to make sure they’re enrolled.