Payroll: What documents do I need from new staff?
When taking on your first member of staff, you need to make sure you get everything right.
Whilst it’s easy to get ahead of yourself, it’s imperative to take a step back and make sure you have all the information you need from your new employee.
Failure to collect the right documents or inputting false information could lead to hefty fines in the future.
To help you avoid this, our experts have outlined the key documents your new employee will need to supply:
Right to work documents
Before an individual can start working for you, you must check whether they have the legal right to work in the UK.
As outlined by the Government, someone is entitled to work in the UK if they have any of the following:
- A British passport
- British citizenship
- European Economic Area (EEA) citizenship
- Swiss citizenship
- A relevant work Visa or permit
As part of this screening, you should ask to see the original documents and check that they are valid.
Make sure you keep a copy of this on file, along with the date that you checked the documents.
It is recommended to check these documents during the recruitment process, but if you haven’t done so, check before formally sending a job offer.
More information on right to work checks can be found here.
Once you’re satisfied with the information that your employee has provided, you need to make sure you can pay them.
As mentioned in our last blog, you will need to register as an employer with HMRC to pay your employees and fulfil your tax obligations.
To get the payroll ball rolling, you will need the following from your employees:
- Personal details including gender, date of birth, and address
- Their total pay and tax paid in the current tax year
- Their National Insurance number
- Their existing tax code
- Whether they need to repay a student loan
The easiest way to obtain most of this information is through the employee’s P45. But make sure to have a New Starter Declaration ready, in case any of this information is outdated.
Our next blog will give you more insight into which payroll taxes you need to be aware of.
Need payroll advice? Contact us.