Taking on your first employee is a big undertaking, be sure that you appreciate what is involved before you start.
Firstly, the employee will cost you more than their wages or salary. If they are paid over the Earnings Threshold for National Insurance Contributions you will not only have to start deducting tax and national insurance contributions from the employee, but you will have to pay 12.8% of the excess wages over the threshold in employer's contributions. You can not deduct these employer's contributions from the employee!
Secondly the record keeping for an employee is almost as much again as the record keeping that you are doing for the business. A second or subsequent employee does not add that much extra bookkeeping after the first one.
Finally and in the long run the most important aspect to consider is the legal obligations that come with being an employer (Health & Safety, Statutory Payments, and many more) see the ACAS Website for further information. A written statement of employment particulars is recommended as a minimum. One can be created on the Business Link Website.
For more information contact Will Johnson on 07967 522374.
