new Self employed business paying casual staff help!!
bennyboyyorks started this topic @ 11:13 on 30/01/2012
Hi I hope someone can give me a little advice. I am in the process of setting up my own self employed swimming school, teaching children and adults of all ages to to swim. occasionally I may require swimming lesson helpers and qualified lifeguards to help me. I am not able to guarantee any hours as my requirements will be minimal as I am just starting out. I have trained contacts in the industry who are prepared to help me out for 4-5 hours a week if an when needed. However I am not sure what is the best way to pay these people as they would not ahve a contract. Please help me
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RE: new Self employed business paying casual staff help!!
Accounting101 | 02/02/2012 10:35 AM
Hello,
If you are looking to employ part time employees you can do so either on a cash in hand basis or through setting up a staff payroll system which will cover the national insurance of each employee. This system is the one i would recommend for you.
You need to start off with finding out the availability of each staff so that way as you get busy you can be able to know who is most likely to be available to cover a shift. each time they work you get their to fill out a Time sheet outlining their start and finish time so you pay them on an agreed basis at the end of the month or week the hours they have worked minus their National Insurance Contributions.
It is a system often used by agencies when they are employing staff as they often experience a higher rate of staff turnover so it is better for their record keeping. Offer the staff a contract of temporary employment stating how they will be paid and when they can expect to be paid (often at the end of the month) -(it can work out cheaper for you in terms of the payroll service).A contract also overs liability as you can state the terms and conditions of the employment and what you expect from them as well as helping you to be taken more seriously as an employer by your workers.
Don't be afraid to take on new staff and just because you have taken them on does not mean you have to pay them each month, you only pay them according to the hours they work. If they do not work you don't pay them.
Also make sure every new person you register as an employee you keep a record of their passports and make sure you check to see if they can legally work in the UK because as an employer should they not be legally able to work in the UK you could face thousands of pounds in fine so its you legal obligation to protect yourself and your business.
If you would like to know more, feel free to contact our office on 02089868348 or email us on requests@vivianbellandassociates.com
Kind regards
RE: new Self employed business paying casual staff help!!
James Smith | 03/02/2012 08:55 AM
Er you cant pay people "cash in hand" that suggests tax fraud.
Either they are your employees on your payroll or they would be self employed contractors. The latter may apply to a swim instructor who does the same for various different schools, but ordinarily most of these staff would be employees.
Its quite easy to run payroll for small sums, especially if you are employing students or similiar who - if they can tick the box on the P46 that they have no other income - wont need any tax deducted in any case.
NB ALL employees or contractors will need a contract. It doesnt have to be complex, and as above you can have a "zero hours" contract, ie you only pay them for the work they do.
I hope that helps
Regards,
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James Smith
Chartered Accountant
www.jamesesmith.co.uk
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