Employers are required to register for PAYE if one or more members of their staff (including directors) meet one or more of the following conditions:
Paid more than £112 per week or £5,824 per year (2015-16)
The Employee has a second job or is claiming a pension
You provide the employee with other taxable benefits
Once registered for PAYE all members of staff working for the business need to have details submitted to HMRC regardless of whether a tax payment is due or the amount they are paid.
Since April 2013 HMRC have operated a RTI (real time information) payroll requirement, this means that employers will need to submit information to HMRC on or before the payment to the employee is made, further to this payroll software is now required for these submissions, although there are free to use programs out there.
If an employer is registered for PAYE and no payments have been made in a month then they are still required to inform HMRC of that by providing a nil payroll submission.
Employees also have various rights under English law including:
Right to a payslip and P60
A minimum wage depending on their age
Right to join a pension even if they are under the auto enrolment threshold
Holidays, currently 28 days per year for full time staff, bank holidays are no longer compulsory holidays and can be worked or taken out of the 28 day allowance.
Statutory Sick and Maternity/Paternity pay
Any deductions made need to be paid over to HMRC by the 19th of the following month (22nd if paying electronically) however quarterly payments are acceptable if the total PAYE and NIC bill averages out to less than £1,500 per month.
If you would like to discuss any of the issues covered above or find out more about our Payroll services in and around Northampton please contact us.