Bringing new team members into your business is an exciting time, but setting up payroll correctly is essential to avoid compliance issues and pay delays. At Every Penny Accounts, we help you onboard new employees with ease – taking care of everything from collecting personal details to setting up payment records.
We ensure each start date is recorded accurately, each starter declaration is processed correctly, and every new hire is included in your full payment submission to HM Revenue & Customs (HMRC). Whether you’re hiring permanent staff or temporary or agency workers, our payroll services are designed to keep everything compliant, clear, and on schedule.
When you employ staff for the first time – or expand your team – it’s important to follow each step of the payroll setup process carefully. Each new employee must be processed correctly to meet HMRC requirements and ensure accurate payments, deductions, and reporting.
Here’s a breakdown of the key steps to ensure your new employee payroll setup is smooth and compliant from day one.
Before you can pay staff, you’ll need to register as an employer with HMRC. This allows you to
operate PAYE (Pay As You Earn), which is the system used to handle income tax and National
Insurance deductions. Registration must be completed before the first payday.
You’ll need to select suitable payroll software to record earnings, calculate tax and NI, and file
reports with HMRC. The right system will also generate payslips, track leave, and support pension contributions. At Every Penny Accounts, we’ll help you choose and implement a solution that fits your business needs.
Accurate recordkeeping is essential. You must maintain a payroll record for each employee, which includes their payroll ID, salary, tax code, student loan deductions (if applicable), and any adjustments. These records should be retained for at least three years and made available for audit if needed.
Once your payroll is set up, you must submit details of your new employees to HMRC in real
time. This includes sending a full payment submission (FPS) each time you pay them. The FPS includes tax paid, National Insurance, and other statutory deductions.
You’re responsible for calculating your employee’s gross and net pay, as well as any deductions such as tax, NI, pensions, and loans. HMRC requires that these are deducted accurately each pay period. The system should also flag thresholds – for example, when an employee earns enough to trigger new tax or pension bands.
Setting up payroll for new staff can be complex, especially when dealing with different employment types such as temporary workers, part-time roles, or those who work in the UK under certain visa conditions. Our team helps remove that stress by managing the process from start to finish.
We’ll gather the right personal details, register the employee with HMRC, and assign them a payroll ID within your payroll system. We’ll also guide you through completing the starter declaration to determine the correct tax code, and confirm if the employee has other employees or roles elsewhere.
Every Penny Accounts ensures that your payroll process not only meets what is legally required in Chatham, but also fits your business needs and budget. Whether you need help with a single job offer or are onboarding a large team, we’ll tailor our support accordingly.
HMRC compliance is a core part of running payroll in Chatham. Employers must follow strict rules on reporting, deductions, and documentation. Even small errors in setup or filing can lead to penalties or staff payment delays.
We make sure you stay on the right side of HMRC from day one. This includes registering employees properly, sending accurate FPS returns, applying the correct tax code, and ensuring your payroll records are updated as staff details or contracts change.
As soon as eligible employees are hired, they must be enrolled into a workplace pension scheme under UK auto-enrolment laws. Employers must calculate and submit pension contributions each pay period and ensure employees are aware of their rights.
At Every Penny Accounts, we handle every part of the process – from identifying eligibility and calculating workplace pension contributions to communicating with your pension provider and updating your payroll software. We ensure your new staff are fully enrolled without delays or
errors.
Managing new employee payroll in Chatham doesn’t have to be stressful. With Every Penny Accounts, you’ll have a dedicated team to help you set up, run, and monitor your payroll efficiently and compliantly. We make sure all payroll processes are completed correctly, so your new hires receive their pay on time, every time.
If you’d like to learn more about how we can support your business with payroll, pensions, or managing self-employed workers, contact us today. We’ll provide honest advice, flexible services, and a professional approach that grows with your business.
