The ultimate checklist for employing staff (free download)

For small businesses, employing your first staff member is a big milestone. It's a significant decision, and finding the right people is important. Employees can increase your business’ productivity, diversify your skill set, and reduce your workload, leaving you free to concentrate on other essential tasks. However, it also brings new obligations and responsibilities. ​

To help you navigate the process of employing staff,  we've created a free comprehensive checklist. This valuable resource outlines all the important things to keep in mind, and the steps you need to take when making your first hire.​

This checklist is applicable to all types of business entities, including companies and sole traders interested in employing staff. The contents specifically cover the hiring process, regardless of whether they’re full-time or part-time. If you intend to hire contractors or other self-employed staff, this checklist won’t be applicable. ​

You can use HMRC's online tools (or payroll software such as Xero) to calculate income tax based on each employee's tax code and earnings. You need to deduct the appropriate amount from their gross pay before distributing their net salary.​

NI is a social security contribution that both employers and employees must pay. It has different categories and rates. Employers deduct their employees' NI contributions from their gross pay using PAYE. ​

As an employer, you must report and pay employer NI contributions to HMRC along with your regular payroll submissions.​

You must submit payroll information to HMRC on or before each payday. This includes details of employee earnings, deductions, and taxes through Real-Time Information (RTI) reporting.​

 In the UK, employees are entitled to annual leave (a minimum of 28 days, including bank holidays), maternity/paternity leave, sick leave, and shared parental leave, amongst others. Depending on specific circumstances, some of these may be paid.​

Yes - for instance, the Employment Allowance, which reduces the employer's NI liability. It’s best to ask your accountant if your business qualifies for any incentives.​

Yes, you must automatically enrol eligible employees into a workplace pension scheme, and contribute to their pensions. This is known as auto-enrolment, and it’s vital when employing staff. If you’re unsure of how this works, be sure to check with your accountant.​

When employing staff, you need to maintain accurate records of your employees' earnings, taxes, and NI contributions. It’s also important to keep a record of pension contributions and other benefits.​