13 Sep New Employee Checklist by Accountants Near You
Let Accountants Near you Help you with Payroll for Employees. One of the main questions is how do I find accountants near me for payroll. There are various tasks that an employer has to perform when they take on a new starter.
For 2019/20 an employer needs to operate PAYE where the employee earns more than £118 per week. The lower earnings limit for National Insurance purposes). Employers must RTI and report all payments to employees to HMRC (even those below £118 per week).
Work out what tax code to use
The tax code is fundamental to the operation of PAYE and it is important that you use the correct tax code. To ensure that your employees pay taxes, the employer will need to know the correct tax code to use. That’s when they ask the question again, where do I find accountants near me?
If the employee has a P45 and left their last job in the current tax year, the employer can use the code shown on the P45.
If the employee left their last job in the 2018/19 tax year, the code on the P45 adds 65 to codes ending in L, 59 for codes ending in N, and 71 for codes ending in M.
If the employee does not have a P45, the employer will need to ask the employee to complete a new starter checklist. Accountants near you really help you figure out the entire thing.
New starter checklist- Guide for Accountants Near You
The new starter checklist enables the employer to gather information on the new employee. If your employee has P45, it’s still useful for the new starter to complete the checklist.
It contains information that is not gleaned from the P45 (such as the type of loan where the new starter has a student loan which has not been repaid).
As far as establishing which tax code to use, the employee will need to select one of three statements:
- A: ‘This is my first job since 6 April. I’ve not been receiving taxable Jobseeker’s Allowance, Employment, and Support Allowance. I’ve also not been receiving taxable Incapacity Benefit, State or Occupational Pension’
- B: I’ve had another job or received taxable Jobseeker’s Allowance, Employment. Support Allowance or taxable Incapacity Benefit since April 6th. I do not receive a State or Occupational Pension.
- C: ‘As well as my new job, I have another job or receive a State or Occupational Pension’.
The following table indicates the codes for 20t depends on the statement of the employee.
Statement ticked Tax code to use A1250L on a cumulative basisB1250L on a Week 1/Month 1 basic CBR
Does the employee have a student loan?
The employer will also need to establish whether the employee is making student loan repayments
If the employee has a P45 and is making loan repayments, tick the student loan between, the P45 will not provide details of the type of loan. You can get the student loan information can on the new starter checklist.
This enables the employer to find out whether the employee has a student loan. You also and if so what type, and also whether the employee has a post-graduate loan. Let us solve the query of Accountants near me. Our accountants help you figure out your student loans.
Tell HMRC about the new employee
The employer will need to add the new employee to the payroll. It also tells HMRC that the employee is now working for the employer. The new starter details on the Full Payment Submission (FPS) the first time someone pays the employee.
Extra note: The Income Tax (Pay As You Earn) Regulations 2003 (SI 2003/2682), reg. 67B and Sch. A1, para. 35—44.