25 Oct What information do you need for new starters?
If you have a new employee, you will need certain information from him or her, in order to set up PAYE and in order that the new employee’s first wage slip contains all the appropriate information.
If the new employee has a P45 this will contain the following information:
- Date left last job
- Total pay and tax paid to date for current year
- Student loan deduction status
- National Insurance number
- Existing tax code
On top of this you will also need to know the following information:
- Date of birth
- Whether they are male or female
- Full address
- Start date
Their date of birth and address may need to be verified with a document such as a birth certificate, driving licence, passport and/or utility bill.
In the past, if the new employee did not have a P45 they would present a P46. This is no longer in use. Now the employee must fill in a New Starter Checklist. The checklist can be filled in online and then saved and printed out. Or, the form can be printed out and filled in manually.
If you need an accountant to help you with the paper work, SQK Accountancy in Manchester have a wide range of experience in PAYE matters and can provide you with assistance.
Once the form is filled out, it must be handed to the employer in order that the employee’s new tax code can be worked out and any student loan payments taken into consideration and finally registered with the HMRC.
The employer fills in a Full Payment Submission the first time the new employee is paid and this document includes:
- The information you have taken from the employee
- The new tax code and starter declaration
- Pay and deductions which will include national insurance and may include student loan repayments
The New Starter Check List asks the employee to fill in their name, address, date of birth, gender, national insurance number and work start date. They will then be asked to tick one of three statements regarding their job status. Finally they will have to confirm if they are in receipt of a student loan.
A PAYE employee is someone that earns more than £5,824 a year, which is the equivalent of £112 pounds a week. Student loan deductions can be taken automatically from the employee’s wages, if they earn more than £17,335 a year. The employer will fill in form SL1 and 9% of their wages will be deducted over a year. (The percentage is due to change in 2016). Deductions should only cease when an employer receives a SL2 notification from the HRMC, not if asked to do so by the employee.
If you would like to know more about PAYE or you need to fill in a New Starter Checklist, SQK Accountancy in Manchester can advise you on all your accountancy matters. We aim to provide a first class service at an affordable price. Contact us by filling in the form on our contact page or telephone us on 020 8798 0657 today.