Becoming an Employer

It is essential to set up a PAYE Scheme with HMRC ensuring that the correct deductions for Tax and National Insurance are made from your employees’ Gross Pay and that these deductions along with any employers National Insurance contributions are paid on time and in full to HMRC. In addition, you must notify HMRC if your employees didn’t work during any tax periods to avoid fines or penalties for Real Time Reporting.

All employers by law must have employer’s liability insurance cover of at least £5 million.

A number of responsibilities are deemed as essential when employing someone as a carer.

• You will need to issue your employee with a contract of employment.
• You must provide your employee with a payslip each time you pay them.
• As an employer, you must ensure that your employees are paid at least the National Minimum Wage. You can of course pay above that amount providing it does not exceed the hourly rate set out within your care plan.

A minimum of 5.6 weeks paid holiday per year is a statutory right for all employees in the UK. Employees who work part-time are entitled to 5.6 weeks pro-rata.

We help clients calculate this when setting up payroll.

Employers have a duty to administer Statutory Payments for their employees whether this is Statutory Maternity, Adoption or Paternity Pay if they are eligible.

Disability Focus can submit a claim to HMRC on your behalf to recoup some or all the monies paid to your employee for a Statutory Payment to reimburse your funded account if the amount is not offset against Tax and National insurance for your payroll.

An employee who has earnt on average £123 per week and has been off work for four or more days continuously is entitled to Statutory Sick Pay (SSP).

Follow this link to HMRC website which will answer all your questions about tax.

Government legislation now requires all employers (including service users) to set up and manage a pension scheme for all of their employees – referred to as Workplace Pensions & Auto Enrolment. Setting up a pension scheme includes:

• Assessment of workforce
• Set up of a Pension scheme (if required)
• Register Pension scheme with The Pensions Regulator
• Produce statutory letter to workers
• Assess and enrol workers accordingly
• Manage workers opt in/opt out requests
• Calculate and deduct workers and employer’s contributions
• Make payments to pensions scheme on behalf of employer (managed account only)
• Maintain statutory records

Follow this link to NEST website which will answer all your questions about Work Place Pensions & Auto Enrolment.

The gross wage is the amount of pay generated before tax and National Insurance contributions are deducted. The net wage will be the amount your employee actually receives after Tax and National Insurance has been deducted.

Disability Focus strongly recommend that employers make a gross pay agreement with their employees to protect and manage the total employment costs.