Employing someone part time

[CJL]

Hi all,

My business is now getting to the point where I could really do with taking someone part time (10-15 hours a week) and a former collegue of mine has been out of work for almost a year so would appreciate the cash.

I have offered him the job, however before he accepts or declines he needs to know how this would affect his benefits (job seekers, tax credits etc)

He is a married guy with 2 kids whos wife only works 8 hours per week.

I would be offering him 12-15 hours work a week on a casual basis (paying about £6.00-£6.50 per hour).

Then looking to take him on full time if things go well in the future (unless he finds a full time job before hand).

Also would I have to set up paye? What tax, nic's would I have to account for?

I have tried contacting my accountant but she is away on holiday (for 3 weeks) so in the mean time any advice would be apperciated.

Thanks in advance

CJL

[LightingGiants]

in terms of JSA if he is working less than 12 hours on basic rate he/she should be entitled to an allowance at a reduced rate...

[snakeeyes121]

It depends on how much you pay him. With JSA the 1st £5 isnt counted, after that for every £1 earned £1 is deducted from your benefits.

[AboveParr]

Also would I have to set up paye? What tax, nic's would I have to account for?


Your best bet is to give HMRC a call on the New Employer Helpline - 0845 60 70 143.

They are really helpful...

[MyAccountantOnline]

Also would I have to set up paye? What tax, nic's would I have to account for?

I have tried contacting my accountant but she is away on holiday (for 3 weeks) so in the mean time any advice would be apperciated.

Thanks in advance

CJL

Hi CJL this should help in your accountants absence -

http://www.hmrc.gov.uk/paye/intro/index.htm

Dealing with payroll can actually be quite time consuming, and is quite involved, especially when you havent dealt with it before and have only one or two employees so you may well find that for a very small cost your accountant will deal with it all for you. As accountants it's one service we offer clients. I suspect your accountant will have some cover when she is away for 3 weeks (hopefully!):)