PayrollAbility Blog
Payroll topics in detail – Help and support as you need it
My new employee does not have a P45 from a previous employer. What do I do?
There are occasions where a new employee will start work with you, and not have a P45. Whilst employers have a legal obligation to provide a P45, employees can misplace the document easily. Occasionally an employer will not provide the employee with a P45, and the...
Why does my employee pay national insurance when they don’t pay tax?
In the 2016-17 financial year, the standard non-taxable allowance for an individual is £11,000.00. If the employee has a standard tax code of 1100L they will begin to pay tax when earning £917.00 per month. This is based on them working from 6th April 2016, and...
Do I have to give my employee a payslip?
In short, yes. Whether your employee works part time and is paid beneath the Tax and National Insurance thresholds or works full time and pays both tax and NI, you are required to provide them with a payslip However, if the person working for you is not an employee,...
What is Employers Allowance?
Employers Allowance is relief offered to employers on Employers NI. Any relief on any tax sounds beneficial, but as simple as that sound lets go into it in more details. As an employer you are required to pay ‘Employers National Insurance’. Employers NI is calculated...
My employee has PAYE tax and NI deductions they did not expect. What do I do?
Tax is calculated based on an individual’s tax code. This will have either been taken directly from the P45 that was provided by their previous employer, or determined by the box ticked on the HMRC New Stater Checklist they completed when they started work for you. If...
If an employee resigns without working their notice period, do I still have to pay them?
You have to pay an employee for the work that they have done, and any holiday leave that has been accrued and not taken. An employee is only required to give one week’s notice if they have been employed for more than 1 month, unless their employment contract requires...
I have overpaid my employee. How do I get the money back?
An employee can be overpaid through payroll by paying a bonus that hasn’t been awarded, or paying too much overtime or commission. Employers are legally entitled to recover an overpayment by deducting it from future wages, after discussion with the employee. However...
My employee is taking repeated short-term sickness. What do I do?
Employees are sick from time to time, and quite often feel bad about letting their employer down. However, if there is a pattern of repeated short-term sickness, there can be underlying reasons why. Repeated sickness absence can be caused by a range of issues, from...
My employee is pregnant, what do I need to do?
You are required to work out whether your employee is entitled to Statutory Maternity Pay and Leave. Some Employees won’t qualify for both. Your employee should give you a MAT B1 on or after the 20th week of their pregnancy. This will allow you to work out their...
My employee is sick; do I have to pay them?
Your employee is entitled to Statutory Sick Pay (SSP) if they earn more than £112.00 per week (before tax). Currently Statutory Sick Pay is £17.69 per day or £88.45 per week. To qualify for SSP your employee will need to have been off work and sick for 4 consecutive...
How do I find out about Auto Enrolment, and what do I have to do?
Auto Enrolment is a new minefield for the small and large employer alike. Simply put, you have to set up an approved pension scheme for your employees, assess each employee for eligibility, begin to deduct appropriate pension contributions from your employees pay each...
I have already employed someone, but haven’t told HMRC. What do I do?
If you’ve employed someone, but their first payday hasn’t yet arrived, you must register as an employer with HMRC as soon as possible. This can be done online using the government website. If you are within 30 days of the first payment you have made to your employee,...
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