Employing Other People

Employers can be companies, sole traders, partnerships or LLPs

Employees

Things to consider:

• Employment law
• Contracts
• Job description
• Hours
• Rates of pay
• Benefits provided – Astons Accountants can help with P11Ds which deal benefits each year
• How to run payroll administration – most clients prefer Astons Accountants to process this for them
• Tax to be deducted
• National Insurance
  • Employee’s contributions
  • Employer’s contributions
• Pensions
  • Employee’s contributions
  • Employer’s contributions
• Discretionary sick pay
• Discretionary absence pay
• Statutory sick pay
• Statutory maternity pay
• Statutory paternity pay
• Statutory adoption pay
• Parental leave policy
• Flexible working policy
• Equality policy
• Health & Safety

Subcontractors/Outsourcing

Things to consider:

• Terms
• Hours/Jobs/Tasks
• Rates of pay
• Tax status – should you deduct 20%, 30% or have they been awarded Gross Status?

For the CONSTRUCTION INDUSTRY SCHEME (CIS) no subcontractor should ever be paid without “verification” from H M Revenue & Customs, so it is very important to always obtain:

• Name
• Address
• Date of Birth
• National Insurance number
• Unique Taxpayer Reference (UTR)