Navigating Payroll: Questions to Ask Your Accountant When Taking on Employees

At Neon Accounting, we understand that expanding your team is a significant milestone for your business. Whether you’re a startup or an established company, hiring new employees comes with its own set of financial considerations. To ensure a seamless transition into the world of payroll, it’s crucial to engage with your accountant early on. Here are some key questions to discuss with your accountant when taking on employees.

Taking on employees is a significant step for your business, and Neon Accounting is here to support you every step of the way. Schedule a consultation with our experienced team to discuss your specific needs and tailor our accounting services to help your business thrive. We’re committed to providing professional guidance with a friendly touch, ensuring your business’s financial success as you expand your team.

  1. What are the Tax Implications?
    Before welcoming new team members, it’s essential to understand the tax implications for your business. Discuss the various taxes associated with employment, including National Insurance contributions and Income Tax. Your accountant can guide you on how these obligations will impact your business’s financial health.
  2. Should I Operate a Payroll Scheme?
    Understanding whether to operate a payroll scheme is fundamental when hiring employees. Your accountant can help you determine if it’s more advantageous for your business to register for the Pay As You Earn (PAYE) scheme or explore other alternatives. Compliance with HM Revenue & Customs (HMRC) regulations is crucial to avoid penalties.
  3. What About Pensions?
    As of [current year], all eligible employees must be enrolled in a workplace pension scheme. Discuss the implications of auto-enrolment with your accountant, ensuring your business complies with pension regulations. Your accountant can help you set up a pension scheme and calculate employer contributions accurately.
  4. Are There Any Grants or Incentives Available?
    Explore potential grants or incentives that may be available when hiring new employees. Your accountant can advise on government schemes, such as the Employment Allowance, that could help alleviate some of the financial burden associated with taking on additional staff.
  5. How Can I Ensure Accurate Record Keeping?
    Maintaining accurate records is critical for smooth payroll operations. Seek advice from your accountant on implementing efficient record-keeping systems. This includes keeping track of employee details, hours worked, and any other relevant information to ensure compliance and transparency.
  6. What Employment Contracts Should I Implement?
    Ensure that your employment contracts are comprehensive and compliant with current employment laws. Seek guidance from your accountant on the essential elements to include, such as terms of employment, salary details, and other relevant clauses.
  7. How Can I Budget for Employee Costs?
    Work with your accountant to create a realistic budget that includes employee costs. This should encompass salaries, taxes, and any additional benefits. Accurate budgeting ensures that your business remains financially stable while accommodating the new hires.
  8. Can You Help with Employee Expenses?
    Discuss the process of managing and reimbursing employee expenses with your accountant. Understanding the tax implications and ensuring compliance will contribute to a streamlined expense management system.