Employers Guide to New Starter Details required for Payroll

When a new employee is hired employers should ensure that they have all the necessary information to correctly process their payroll. This information is used to determine the amount of tax and National Insurance contributions (NIC) that should be deducted from the employee’s wage, as well as to report earnings to HM Revenue and Customs (HMRC).

Johnston Smillie provides Payroll Services to 350+ clients in Edinburgh, Lothians, Borders, Fife and further in Scotland.

The following is a list of new employee details required for an employer’s payroll records:

• Personal Details: The employee’s title, full name, address, date of birth and National Insurance Number
• Contact Details: The employee’s email address, this is often required so the employee can access their payslip online.
• Start Date: The employee’s start date is used to determine when their first salary should be paid from, as well as when they should be automatically enrolled into the employer’s workplace pension scheme.
• Starter Declaration: This is used to determine the employee’s tax code that should be applied in the first pay period if a relevant P45 is not provided.
• Payment Information: The employee’s payment method and bank details, these should include the bank account number and sort code.
• Salary Information: The employee’s annual or monthly salary amount, hourly rate of pay, standard hours worked each week and any other contractual allowances.
• Pension Information: Employers must offer eligible employees a workplace pension scheme. If relevant the employee’s postponement period as well as their employer and employee pension contribution percentages should be provided.

It is important for employers to keep accurate payroll records for complying with legal and regulatory requirements. HMRC advise employers to keep payroll records for three years from the end of the tax year to which they relate.

At Johnston Smillie we offer payroll management services that enables employers to maintain compliance with regulatory requirements. To find out more about our payroll services, please contact Tasia Meadows on 0131 317 7377 or email Tasia.Meadows@jsca.co.uk