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As an employer operating PAYE as part of your payroll, you need to complete certain tasks during each tax month. Tax months run from the 6th of one month to the 5th of the next.

Pay is one of the most important factors in working life.

Here are tips for managing your employee's finances:

To help prevent any problems with a new worker's first payment of wages, you should: 

  • Ensure they are aware of payment dates and method of payment.
  • Check they understand their pay rate, especially if it varies.
  • Check all necessary information is provided and correct. For example, bank details.
  • Ensure any requirements for income tax and National Insurance are followed correctly. Workers must pay tax on wages through a payment system called 'Pay As You Earn' (PAYE). Employers or their payroll providers use this system to make these deductions from wages before they are paid.  
  • Remember, within two months of an employee starting work you must provide them with a Written Statement of Terms and Conditions of Employment. 

For step 4 in the handling pay and wages, series click here

Source: © ACAS

Open Government License for public sector information


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