Hiring Your First Employee? Payroll Costs & Responsibilities Explained!

Описание: So, you’re growing your small business, and you’re ready to take on your first employee – exciting times! But where do you even start?

I’m Beth, an accountant with over 10 years of experience helping small businesses grow. And I know that hiring someone for the first time can feel overwhelming – especially when it comes to payroll.

Let’s break it down:

Set up a PAYE scheme – Register with HMRC to legally pay your employee. The trickiest bit? Waiting for HMRC to send your references.

Choose a payroll system – Or better yet, get an expert to run it for you. Payroll mistakes can be costly!

Understand the costs – You’ll pay:
The agreed gross salary
Employers’ National Insurance (NI) (though you might be eligible for an allowance)
Employers’ pension contributions if they meet the earnings threshold

As a rough guide, if you're paying an employee £2,300 a month, the employers’ pension contributions alone could be around £500 a year.

Let your accountant handle the details – They’ll run payroll, send pay slips, tell HMRC, and let you know exactly what to pay and when. You just make the bank transfers!

Once you’ve got payroll sorted, paying your first employee is easier than you think. Need help? Get an expert on board to make sure it’s all done right!

#SmallBusinessTips #Hiring #PayrollMadeEasy #BusinessGrowth