As a New Entrepreneur you Face a Whole Raft of Legislation
As a result of the pandemic, many people have begun to work from home. Quite a number of people have realised that working for a boss is perhaps not all it’s cracked up to be. The realisation has dawned gradually, that they could run a business similar to the one they have been working in for the last “x” years and run it from home. Others may have diversified into something completely different. Either way, the fact is that there have been a great number of start-ups over the last year or so. As you are reading this, you may well be one of these new entrepreneurs.
Of course, when you start off in business, if you’re like most people, there may be just you, or you may have a partner or two. This is fine, but it doesn’t last forever, because if your business begins to thrive you need some help. There are only so many hours in the day, after all. So, you need to take on an employee. Suddenly, you become a “boss” when only a few months ago you were working for one!
However, taking on an employee in the 21st century is no longer what it once was. Back in the day, you placed an advert, interviewed those who seemed like a good fit, took on the best person for the job, trained them in the way that you wanted them to work, and just wrote out a pay cheque at the end of the month. Simple.
Today, the instant you take on an employee, even if it is only one, you are suddenly knee deep in a whole raft of legislation. Just to start with, in the vast majority of cases when you take on an employee, you have to provide them with a pension under the Pensions Act 2008. As one of the foremost payroll companies in London, at PayCheck we can help you with this. Just to give you a quick idea of what is involved, here is a summary of what we have written about auto enrolment pensions on our website:
- Types of workers
- Writing to employees
- Postponement
- Opting Out
- Declaration of Compliance
- Re-enrolment & Re-declaration of Compliance
- Calculating the Contributions
- Tax Relief
- Salary Sacrifice
Yes, you have to know about all of that – and you’ve only just taken on your first employee. As your business expands, you take on more employees, and they can fall into different categories regarding pensions, according to their age, their salary, and so on. Some must be enrolled into your pension plan, others don’t have to be, but must be if they ask you to take part. Most of them you have to contribute to as well, although some you don’t.
But it’s not just pensions. There’s your payroll too, and it has to be calculated every week, fortnight, or month, depending upon when you pay them. There can be so many variations because some staff members will have benefits to take into account. You may also pay your salesmen commissions, so their pay cheque will be different every month and may take them into a higher tax bracket. Oh yes, payroll gets more and more complicated – almost, it seems, by the day.
This is why so many business people simply wash their hands of the whole lot, and hand over their payroll duties to us as one of the leading payroll companies in London. We save you money. We save you a lot of time. And you don’t have to worry about errors, because we are specialists and do everything for you.