Equestrian Pension and Payroll
The EEA have partnered up with Butlers Accountancy to help equestrian employers be compliant with pension and payroll (paying your employees salaries, tax and NI) requirements.
EEA Pension & Payroll services start from as little as £22 per month or £260 per year. (All prices include VAT)
What is payroll?
Payroll is the legal record of regular salary calculations for an employee, including wages, bonuses and deductions.
The primary mission of payroll is to ensure that all employees are paid accurately and timely with the correct withholdings and deductions with regards to tax and national insurance contributions and to ensure such withholdings and deductions are paid accordingly and on time to HMRC.
What is the cost for more than 4 employees?
5 Employees (£50/£600), 6 Employees (£54/£648), 7 Employees (£58/£696)
What is PAYE?
Pay As You Earn is the method of calculating tax, employee and employer National Insurance due to HMRC through an employer’s payroll each time your employees are paid.
Can I not just do it all myself?
Yes you can.
However, you will need to register yourself with HMRC as an employer and then learn to deal with current HMRC legislation, deadlines, rates, thresholds, etc. as well as dealing with pension auto-enrolment and pension calculations all of which takes time and patience.
I already have my accountants do my payroll. Can I get you to do the pensions & them payroll?
Pension & payroll go hand in hand.
As pensions are based on the gross amount that an eligible employee is entitled to, they are completely interlinked with the payroll as payments will reflect the relevant monthly payment made through the payroll to that employee.
So for example, if an employee takes sick leave or unpaid leave, this will have an effect on their gross monthly payment and therefore their pension contributions.
||It is advised that you enquire about the current cost of your payroll provision, and increased cost of pension provision and then compare it to EEA Pension & Payroll costs.
Payroll provision and company accounts are not linked and can be provided by two separate companies.
I have an apprentice - what do I need to consider?
All employers now must have a Digit Apprenticeship Service account to reserve the funding for the training.
To do this the employer MUST have an active PAYE account. If they don’t, it will take from point of PAYE application to activating the account and therefore able to create a DAS account, a minimum of 20 working days!
Funding can only be reserved within month and cannot be backdated so ensuring you are set up on PAYE must be actioned immediately if an employer is taking on an apprentice.
You can set it up and not name the staff for up to six months in advance with no penalty or obligation.
Who are the most common pension providers?
Where can I get more advice about pensions?
I think I pay below the National Minimum Wage, can I still use The service?
Yes, but there are very few circumstances where it is not illegal to pay below the National Minimum Wage.
Anyone who is earning £113 or more per week in their only job needs to be placed on their employer’s payroll. If an employee has another job, then they automatically should be on the payroll with you.
Do I pay the money directly into my employee's bank accounts?
You will be provided monthly payslips and unless you pay your employees weekly, you should pay the stated monthly net pay via the method agreed with your employees.
I pay my staff weekly – can I still do that?
You can continue to pay your employees weekly, however, we will issue payslips on a monthly basis reflecting the weekly equivalent.
Please note that there are not exactly 4 weeks in a month so the monthly payslip will show the equivalent of 4.3 weeks’ pay.
You should be aware that you may need to top up monthly to ensure your employees receive what they are entitled to on their payslips.
I don’t think that my staff will want a pension, do I still have to ask them?
If they are 22 or over, and earning £10,000.00 or more per annum, they will need to be auto-enrolled into a pension scheme with a pension provider of your choice.
However, your qualifying employees will be able to opt out if they so wish within the first month of auto-enrolment.
It is illegal for employers must not encourage their employees to opt-out of auto-enrolment.
What happens if I just want pensions but not payroll?
It is not possible to provide a pension service without full details of your employees’ pay as the two are connected.
One of my staff is part-time. Does she still need payroll and pension?
Anyone earning £113.00 or more per week should be on a payroll, and if they are over 22 and are earning £10,000.00 or more per annum they will have to be auto-enrolled into a pension scheme.
How long does my new member of staff have to be with me before I have to register them for a pension?
If you are past your staging date, any new member of staff will be eligible for auto-enrolment upon commencement.
What is a staging date?
Your staging date is the date that your automatic enrolment duties come into effect.
You will be advised of when that will be if you are an existing employer or when you may expect it to be if you are registering as an employer for the first time.
I haven’t yet received my staging date, when should it come?
HMRC inform The Pensions Regulator that you are an employer once they receive your first payment of PAYE, so you should hear soon after then. The latest date for auto-enrolment is currently set at 1 February 2018.
I have always paid my staff cash, can I still do this?
Yes, you can pay your staff by any method agreed by both parties but it is a legal requirement to provide your employees with a payslip as a record of payment and of their wages, bonuses and deductions for tax and National Insurance Contributions etc.
This is crucial for your employees as a record for obtaining bank loans, mortgages etc.
If I am honest I have never paid my staff through HMRC – does this matter?
A call to HMRC will establish how far you will be required to backdate your payroll details and payments.
We can help and deal with HMRC on your behalf and guide you through it all.
Will my staff get payslips and where are they sent to?
Payslips will be emailed to you for checking. Once you are satisfied that they meet your expectations, you should then either email them to your employees or print them out for manual distribution.
So is there really nothing for me to do once I register?
Once you register your responsibility is to pay your employees and pay HMRC.
||If your PAYE liabilities are above £1,500.00 per month, you will be sent monthly P32s informing you of the amount of tax and National Insurance to pay to HMRC on your employees’ behalves and how to pay it; the figure will also include any employer’s NI that will be due.
||If your liabilities are below £1,500.00 per month, you will be sent a P32s on a quarterly basis. You will otherwise need to let us have details of any new starters, leavers, any overtime, unpaid leave, etc.
Also once you are informed of your pension staging date you will be required to open an account with a pension provider of your choice, which once is set-up we can administer for you.
You will be guided through everything by the experienced payroll and pension team.