Confirm who you are hiring
Employee, worker, agency and self-employed status are not interchangeable labels. The real arrangement determines obligations. Document the role, contract, pay, hours, benefits, location and right-to-work process.
Budget the whole cost
Salary is only one line. Forecast employer taxes, pension contributions, paid leave, statutory payments, insurance, equipment, software and recruitment or onboarding costs.
Set up PAYE and the payroll system
Register with HMRC when required and allow time for necessary references. Choose software or a provider that supports current reporting, statutory payments, pensions, secure access and useful reports.
Collect starter data securely
Obtain required declarations, personal details, pay information and tax data through a secure channel. Restrict access and record changes.
Run and review payroll
Enter pay, leave, benefits and deductions; review exceptions; give an accurate payslip; submit required information by the applicable payday; and pay HMRC by the relevant deadline.
Meet workplace-pension duties
Assess the workforce under current automatic-enrolment rules, communicate with staff, enrol eligible people and complete required declarations. Duties can begin when the first member of staff starts.
Keep records and maintain a calendar
Retain payroll, HMRC, leave, sickness, benefits and pension records for applicable periods, with backups and access controls. Plan starters, leavers, year-end tasks and rate changes.
Founder checklist
- Confirm status and contract
- Forecast full employment cost
- Register and configure PAYE/payroll
- Collect starter data securely
- Review, submit and pay each run on time
- Complete pension assessment and records
Frequently asked questions
Can I call someone a contractor to avoid payroll?
No. Status depends on the real arrangement, not the label in an invoice or contract.
When do I register as an employer?
Timing depends on when and how the first person is paid. Check current HMRC guidance early.
Does a payroll provider take legal responsibility?
A provider can operate the process, but the employer remains responsible for accurate information and compliance.
Do pension duties apply to the first employee?
They can. Assess the worker and duties from the employment start date under current guidance.
