Key Facts
For Employing Staff

If it is the first time you are employing a member of staff take a look at the key facts below. We have addressed the most popular facts and things to consider.
Decide how much to pay someone

You must pay someone at least the minimum wage.  The following table details rates for the tax year 2020/2021.



Under 18 years


18 – 20 years


21- 24 years


25 years and over


Apprentices are entitled to the apprentice rate if they are either:

  • aged under 19
  • aged 19 or over and in the first year of their apprenticeship

We have a handy salary calculator to help you work out how much to pay someone.

Agree a gross salary
We strongly recommend agreeing a gross salary, whether by hour, monthly or annually. This is to protect you, the employer, because it limits your liabilities. Conversely, if your employee’s personal tax allowance is reduced for any reason and you’ve agreed to pay on a net amount basis rather than agree a gross amount, it will mean that you as the employer, will have to bear any additional costs incurred as the gross amount would therefore increase to keep the net the same.
Check if someone has the legal right to work in the UK.

You may have to do other employment checks as well.

PC Payroll & Legal can run employment checks for you.

Check if you need to apply for a DBS check (formerly known as a CRB check)

Your employee may require one if you work in a field that requires it, eg with vulnerable people or security

PC Payroll & Legal can help with DBS checks, if applicable, with fees from £100.  

Get employment insurance

You need employers’ liability insurance as soon as you become an employer

Check if your existing insurance policy covers employers’ liability insurance as many do as standard. If not, contact the provider to see if they can offer it as an add-on as this is often simpler than having different policies for different things.

Provide a contract of employment to your employee

You need to give your employee a written statement of employment (contract of employment) if you are employing someone for more than one month.

The Employment Rights (Employment Particulars and Paid Annual Leave (Amendment)) Regulations 2018 – comes into force on 6 April 2019 (and takes effect from April 2020), it implements parts of the Government’s Good Work Plan.  As an employer the main implications are:

  • The need to provide your new employee a written statement of their employment on day one, rather than as it currently stands within eight weeks of the start date.   
  • An increase in the amount of information such a written statement must contain.  
  • All employees are entitled to an itemised pay statement every month.

PC Payroll & Legal can produce legal employment contracts which are fully up to date with current legislation and come with the added benefit of legal advice, if required, for the duration of that employment. Apply for a basic contract through our portal for £99. More bespoke contracts are available from £150 per contract.

Tell HM Revenue and Customs (HMRC) by registering as an employer

If you employ anyone and are paying them £120 per week or more, you will need to register for PAYE and operate payroll. You can do this up to four weeks before you pay your new staff

The PC Payroll & Legal team can take the stress and hassle away from you so you are free to concentrate on the business of your business, by administering your payroll and liaising with HMRC on your behalf.

Personal tax thresholds

From April 2019, the personal allowance will rise to £12,500, and the higher rate threshold will rise to £50,000.

Check if you need to automatically enrol your staff into a workplace pension scheme

The employer must automatically enrol all employees into a pension scheme and make contributions to their pension if all the following apply:

    • they’re classed as a ‘worker’
    • they’re aged between 22 and State Pension age
    • they earn at least £10,000 gross per year in your employment
    • they usually (‘ordinarily’) work in the UK

    Thresholds for 2020/21 are as follows:

    Employer minimum contribution


    Staff minimum contribution


    Total minimum contribution


    PC Payroll & Legal can assess and guide you through the auto-enrolment process then operate it on an ongoing basis.

    Need more help?

    Contact us about your payroll or legal needs

    We have a comprehensive range of payroll, pension and legal services to help you save time. Speak to our highly experienced and friendly team to get started.

    Need more help?

    Contact us about your payroll or legal needs

    We have a comprehensive range of payroll, pension and legal services to help you save time. Speak to our highly experienced and friendly team to get started.

    About PC Payroll & Legal

    PC Payroll & Legal was established in 2011. We help families stay legal and save time with our nanny payroll, pension and legal services. We help small business owners and the self-employed focus on running their businesses by offering outsourced payroll, workplace pension administration, business administration, HR advice and legal services. 

    PC Payroll & Legal is part of the Working Life Solutions Group of companies. The Working Life Solutions Group includes Your Employee Wellbeing which offers wellbeing support programmes for businesses of all sizes.

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