Six Payroll and HR Essentials For A New Business

Understanding HR and payroll requirements can be complicated to understand if you’re a first time business owner and employer, but it’s important to keep things working legally and correctly. Here are some easy tips to get your business operating properly.

1. Get your business registered in good time. Before you worry about getting your payroll set up, make sure you register your business with the tax office first. All salaries you’re paying out should be properly reported, as well as any earnings. Make it easier to file your taxes correctly by choosing the best payroll software for your business. The right software makes managing payroll easier. 
2. Get payroll ready before you start. Even if you’re going to manage payroll with software, get it ready to go well in advance and make sure it’s been set up correctly. You need to be able to calculate net and gross salaries, any tax deductions, and any extras like maternity pay. Be ready to provide each person you employ with a detailed payslip that shows their earnings.
3. Give each new employee their employment contract promptly when they enter a job with your company. Different kinds of contracts may be required for different types of employment, such as full time, part time, interim or flexible hours, so make sure you’ve got the correct kind of contract. Whatever contract you need to use, it should include the essential details, like the names of you and the employee, employment start date, employment end date if relevant, their job title, a brief description of the job role, their salary and pay frequency, usual hours of work, any vacation entitlement, sick pay, notice period and any pension arrangements.
4. Decide on some proper employment policies and use them to create a staff handbook. This handbook gives you a written record of your expectations of workplace behaviour, which can help protect your business in the event of a disagreement. 
5. Make sure any new staff you hire are eligible to work in your country. If you hire someone who isn’t legal to work, you could face a nasty fine. Ask for their documents that prove they have a right to work, check they are genuine and valid and then take copies of any relevant pages. Keep these copies securely on file somewhere, in case you ever have the need to prove your staff are legally employed. Avoid accusations of discrimination by asking for proof of right to work after you’ve made a job offer. If you find out one of your staff isn’t legally able to work in your country, end their employment contract immediately. 
6. Induct all new employees. This helps them to get a feel for your company and get familiar with your office. Make sure they can find their way around the workplace, and have all the information and tools they will need to do their job. Go over any basic office information, like how to find the kitchen and bathrooms, and then spend some time talking about your expectations of their new role.