Pay As You Earn (PAYE), Payroll for Employers

1. Introduction to PAYE

As an Employer, you should operate a Pay As You Earn (PAYE) in Real Time Information System (RTI) as part of your normal business operations, if you are paying someone more than a specific limit and also if you have more than one employee. You may want to check for yourself if you need to register your business for payroll, Employer Registration Criteria. Pay As You Earn (PAYE) is HM Revenue and Customs (HMRC) live system to collect Income Tax and National Insurance from employment on an ongoing basis. You are exempt from Pay As You Earn (PAYE) registration as an employer if you have only one employee and he/she is being paid below a certain amount (varies every year) a week, get no expenses and benefits, has no other job or gets no pension, Employer Registration Criteria. However, you must keep Payroll Records even for your only employee.

If you are a business, either, self-employed, a limited liability company, a trust, and or a partnership or any other shape and you are employing people, paying them expenses you must register yourself as an employer and operate a Real Time Information System (RTI). It may sound very simple, but it could turn quite tricky if you have a few number of people or if your employee turnover is quite high or you are operating a Construction Industry Scheme, or it is a large production environment etc. Zero One Consultants must advise you not to operate your payroll system for many justifiable reasons. In Real Time Information System (RTI) depending on your payroll structure, you are running a weekly, fortnightly, four weeklies or a monthly payment frequency, information must be reported in real time to HM Revenue & Customs (HMRC). It simply means the day you pay your staff will be the day (on or before each payday) when you will transmit information electronically using a compatible commercially available software to HM Revenue & Customs (HMRC).

When paying your employees through payroll operating Pay As You Earn (PAYE) In Real Time Information System (RTI) you also need to make deductions for Pay As You Earn (PAYE). Remember you are responsible for making deductions from your all employees (contracted, non-contracted, daily wage employee, salaried employee, temporary or permanent, Construction Industry Scheme (CIS) staff) and submit collections to HM Revenue and Customs (HMRC) on specified dates. Payments to your employees may include their salaries or wages, as well as things like any tips or bonuses, benefits in kind or statutory sick or statutory maternity pay. If you are paying someone overseas, please seek help from your choice below

• ➢Contact HM Customs & Revenue
• ➢Zero One Consultants Contact Us.

Zero One Consultants highly recommends you if you are going to be an employer ask a professional to help you from registering as an employer to run your Pay As You Earn (PAYE) system especially if you have few employees. You may think that you have an only little number of employees so you should carry on your Pay As You Earn (PAYE). Zero One Consultants assures you this is not just about pressing the button “submit”. In Real Time Information System (RTI) any amendments are hard, and chances of errors are high.

2. Deductions from Pay (Salary, Wage, Bonus)

From these payments, you will need to deduct tax and National Insurance for most employees. Other deductions you may need to include student loan repayments, pension contributions, child maintenance or a court order (any deductions ordered by the court must be deducted on the system showing in your payment slip). From a local government or central government department, you may receive an earning order deduction where you must cut an ordered amount from the employee’s wage or salary and forward this to a local asking government department. This is very important; please do not ignore this and ask for professional advice, if you are with Zero One Consultants, please bring this to our notice as soon as possible.

You will be able to view what you owe to HM Revenue and Customs (HMRC), based on your reports, we will tell you about every payment period what you must pay to Government. You then must Pay Them, usually every month. If you are a small employer that expects to pay less than £1,500 a month, you can arrange to pay quarterly - contact HM Revenue and Customs (HMRC)’s payment enquiry helpline. As part of your regular reports, you should tell HM Revenue and Customs (HMRC) when a new employee joins and if an employee’s Circumstances Change, e.g. they reach State Pension age or become a director.

You must run Annual Reports at the end of the tax year - including telling HM Revenue and Customs (HMRC) about any expenses or benefits.

3. You as an Employer

As an employer, you are legally responsible for completing all Pay as You Earn tasks - even if you pay someone else to do them. You will have to keep all the records for six years, please follow the data protection guidelines for help or speak to Zero One Consultants in confidence. When you are employing someone, it’s your and only your responsibility to make sure they have a right to live and work in the country. You can delegate this authority to Zero One Consultants for staff vetting (Terms and Conditions Apply T & C). Should you fail to do so, you will be only responsible for the failure to comply with a statutory check and may result in heavy penalties. You are responsible for collecting and keeping records of your employee’s details. Your payroll provider will need these to run your payroll for you, should you decide to appoint one.

4. Keeping records

You must collect and keep records of what you pay to your employees and other staff. Collect from Zero One Consultants if we are appointed to do this task for you. You must keep your record of the deductions you make from your employees’ wages you pay to your employees and all the payments you make to HM Revenue and Customs (HMRC). Payroll Scheme Documents, including the agency contract (if you are) normal working contracts, each employee file, employee authorization forms, keep the records of their eligibility of work and stay in the country, all the work-related training and qualifications required to prove their eligibility to work. Your records must show you have reported accurately, and you need to keep them for three years from the end of the tax year they relate to. HM Revenue and Customs (HMRC) may check your records to make sure you are paying the right amount of tax.

If your records are lost, stolen, or destroyed tell HM Revenue and Customs (HMRC) as soon as possible. If you do not have records and cannot replace them, you must do your best to recreate them. HM Revenue and Customs (HMRC) may be able to help you to find out how much you have already paid to your employees. Do not attempt to do (to create your duplicate figures on) them on your own ask for help and be very open to HM Revenue and Customs (HMRC) or Zero One Consultants to resolve the problem for you. By doing it wrong, you may put your employee’s Pay as You Earn records in serious jeopardy and cause yourself unnecessary Pay as You Earn and National Insurance Contributions (NIC).

5. What can Zero One Consultants do for you?

We are a qualified firm of professional accountants who are effectively running their payroll bureau services for a large number of clients. We process your payroll every week, fortnight, four weekly or monthly depending on your requirements. We also give you a more dedicated service if you are an employment agency. In process, if you are a new employer or existing employer switching over to us we will do the all below

New Employer	Existing Employer
PAYE registration application	Assessing all the requirements Bringing all the data into our system for your old accountant, Adding P45, P46
Inputting all the employees In our system adding P45, P46

Zero One Consultants as a professional payroll bureau aims to deliver you high quality of payroll services. This includes real-time processing of staff information, provided for hours worked, right payment rates if any then sick payments including statutory sick payments, statutory maternity payments, paternity leaves, holiday calculation entitlement and withdrawn (holidays used). Finally, yet importantly, we produce right payslips for your employee according to delivery instructions whether it's e-slip or printed versions. We will be processing all the employers return when and where due and will be provided to you as part of your package. We make full payment submissions according to your instructions as required by the frequency of your payment days but also complete your year-end final submissions, which are statutory requirements, failure to do so may cause you penalties.

Realistically Payroll can become more complicated when you are registered as Construction Industry Scheme employer and running a payroll for Construction Industry Scheme contractors and or, also your normal payroll staff members. Construction Industry Scheme is a little extra tricky, as you must cut and submit the right amount of tax and in right time, so please be aware of risks you are exposed to if you are running a Construction Industry Scheme (CIS) Pay as You Earn in Real Time Information System (RTI).

We assist in writing a contract of employment or selecting the right recruitment procedures with any PAYE-SLA. We like to make you aware that, this is not a compulsory service and only comes as complimentary service. Should you need this as a compulsory service, please speak to someone for a more detailed review and assessment of your requirements.
Zero One Consultants have a policy of employer affordability and reliability; our packages start from, as low as £10/month to process your payroll (Terms & Conditions Apply, Ask for a Quote Tailored to Your Requirements). This might sound unbelievable, but if your business is within certain parameters, you will be getting away with this charge. We advise you to book an appointment and have a full consultancy before you sign the engagement letter and ask for your insecurities.
In spotlight below will be our role for your payroll processing depending on your Service Level Agreement;

• Register as agents on your behalf with HMRC.
• Support and guide you for recruitment and appropriate hourly rates upon request.
• Provide you with payslips. We will provide all the relevant payslips to you and other staff members on their emails provided to us in e-versions.
• Calculate Tax and National Insurance contributions and ways to pay your liability.
• Ensure all other deductions have been made by statutory regulations, e.g. student loans, CSA, fines, government deductions etc.
• Employer insurance contributions to HMRC.
• Calculate annual leave entitlements for all employees.
• Record annual leave and sickness (as informed).
• Provide all necessary documentation including P46’s, P60’s and P45’s.
• Complete tax returns online annually.
• If you have any employee for Benefit in Kind, you will be responsible for providing us all the information about the employee. What you provide an employee as Benefits in Kind “BIK” so we can calculate the payable figures for HM Revenue & Customs.
• We will notify HM Revenue & Customs about P11, P14, P35 if applicable and year end return electronically and staff members with P45, P60 both electronically and paper versions on request.
• Make statutory payments when required, e.g. SSP, SMP, and SPP etc.
• Ensure minimum wage hourly rates (where selected) are increased in line with annual and age-related increases.
• Adhere to legal obligations and confidentially store records for six years please see the schedule 5, as all the PAYE records are digital by default.
• We do “Real Time Submission” filings with HM Revenue & Customs both yearly and monthly whenever it is needed or required.

6. Point of Stress

an employer, you have a liability towards your staff to calculate the right amount of wages and then the tax deductibles. If you make a mistake, it will simply end up in wrong calculations of your staff wages and tax deductibles. In your staff, there may be working mothers, low earning family members who are dependent on income related state benefits (Working and Child Tax Credits, Housing Benefits, or some other state benefits). If you process your staff wages in wrong amounts or wrong tax deductions are made they will be suffering from the wrong calculations of their benefits as well.