Timing of payments
Salary payments can be made on the last day of the month, or between the first and the fifth day following the month of pay.
The income tax deductions applied to the employee salaries are payable once per quarter following the end of each calendar quarter, therefore payments will occur in April, July, October and January.
Social security including both employee deductions and employer contributions are payable by the end of the month following the month of pay.
Change of circumstances
Any changes to the circumstances of the employment will need to be carefully managed. Regular communication with your payroll adviser is essential to deal appropriately with everything from sickness notes to disciplinary procedures and employee dismissal.
Before taking any employees on:
- Get an estimate from your payroll adviser to ascertain the actual deductions applicable, the total cost to the employer and the net pay for the employee
- Ensure your employee is aware of the system to avoid misunderstandings
- Formalize the employment contract from the first day
- Beware of additional benefits - in case of dispute the employee can make claims even in relation to any informal benefits given