Starter and Leaver PAYE Support

Payroll Onboarding for New Employees

When onboarding a new employee, one of the most important tasks to do straight away is adding them to your payroll. Getting a new starter set up on PAYE is relatively straightforward, but it involves some manual admin which can be time-consuming, especially for small to medium businesses with small HR and finance teams.

• First off you’ll need an employee record. This contains information about their role and contract details such as start date, salary, benefits, and their employee reference number.
  
• You’ll also need a recent P45 form or a completed HMRC Starter Checklist form which has replaced the P46. This will also identify if deductions are required such as student loan repayments.
  
• A new starter may be entitled to a reduction of exemption from paying National Insurance. If this is the case, they will need to provide an age exemption certificate (CA4140), a certificate of election (CA4139) or a deferment certificate (CA2700). These certificates will need to be verified by you or your payroll partner.
  
• Using the information above, the next step is to set up the employee on your payroll software.
  
• Finally, you’ll need to register them with HMRC on a Full Payment Submission (FPS).
  
  

Adjusting Payroll When an Employee Leaves

When an employee leaves the company, you must provide them with the right paperwork, ensure they receive all the payments they are entitled to and update your records and PAYE systems. This includes the following tasks.

• Provide the leaver with a p45 which includes information about their employment, National Insurance and Tax Codes as well as any student loan deductions.
  
• Update their employee record with details about their final pay date and amount and whether they’ll receive a company pension.
  
• Make deductions to your next Full Payment Submission (FPS).
  

• Adjust your payroll software to include updated details about the employee.
  

There are a few more tasks which may need to be completed. For example, making redundancy or accrued holiday payments.